The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1876-10-15
Is Business Reviving 2

and those asking all manifest great apx.
ioty, upon the subject of inquiry. The
New York Times Of Saturday says:
"As a matter Of opinion, the prospect
ia nearly all branches is better than at
tho corresponding period for several years.
II would be rash to conclude that the
improvement already realized is certainly
to bo lasting and to increase, or that the
moro cheerful views entertained by mer.
chants are fully justified, But it is quite
evident that the indications point in that
direction, and these are confirmed by the
experience of tho last three years. We
have always held, and we frequently OK.
pressed tho opinion, that decided i'm.
provement 10 trade was sure to take place
as a consequence Of. process which has
constantly gone on ever since the panic Of
1878. How soon the change would take
place, wo have never undertaken to Say !;
but wc have reasoned in this way. The
revulsion Of three years since was caused
bv previous extravaganza in manufactur.
ing, in industrial enterprises Of various
kinds, particularly in works of transpor.
tation. This extravaganza fostered reck.
lessness in giving credits and in living,
and was, in its turn, largely duo to the
issue Of paper money, which gave the ap.
pcarsnce Of actual wealth to what was
really the evidence of waste and destruc.
ton. OF the labor and material taken
by the government and devoted to abso.
lutte destruction-to purposes which did
not and could not yield one penny of re.
turn, some four hundred million dollars
were represented by legal tender notes.
These notes wero IN reality dsbt-noth.
Ing else, nothing less but in the hands
of the holders. they were money, and
were counted and used as money. The
influence ofthis radical error on the modes
Of doing business and on the ways of liv.
ing was itself enormous and yet it was
only an impulse which constantly tended
to multiply itself, and to ally itself with
other similar impulses. Tho result was
that, with high prices. ready sales, and
extravagant consumption, the country
built up an imposing fabric of fictitious
wealth, which took various forms. 1t OK.
isted in 'watercd' stocks Of railways,
mining companies, fcunderies, and faoto.
ries: it consisted 10 the fancy prices Of
real estate, ard other kinds of Fixed
property; hud it consisted especially 10 a
great mass Of commercial credits which
were ont Of all proportion to the assets on
which they were based.
THE panic Of 1873 was but the touch.
stone of reality applied to this castle 10
the air. 1t was n sudden and imperious
demand Tor the payment 10 hundred
shapes ct tho debts on which every branch
Of the community had been building as on
solid values. The result was inevitable.
Business was temporarily crippled. and
in part suspended Credit was practically
destroyed. Men hcsilated in producing
what thoy might not get pay for. in buy.
ing what thoy might not be able to sell,
AT the same time people everywhere be.
gan to cut down their expenditures. This
process was, perhaps, unnecessarily pushed
in some cases, but it was a wholesome
and unavoidable process in most cases. 1t
caused reduction in production, and
compelled consumption Of the accumulat.
ed stock. At certain point, which there
is some reason to suppose that we have
reached, this process was necessary to
bring about better state Of things. I'M
der its operation tho time vas sure. to
come when the worthless men would be
wecded out OF the various branches Of
trade ; when the honest but unfortunate
would have obtained an adjustment of
their affairs. ascertained their actual re.
sources. and know what they could do
with safety; when apparent wealth would
be reduced TO actual wealth and form
solid basis for business, and when the
community. having consumed its surplus,
beginning to realize renewed wants, and
knowing what its actual available resour.
ces were, would begin to trade again.
AS We have said, there is reason to be.
lieyo that We have reached, or are ap-
preaching this point. There is an un.
questioned revival Of demand for various
articles. Buyers are ablo and ready to
make thcir purchases on safe terms. Col.
lectiops are falling into their natural
channel The course Of trade 10 such as
might reasonably have been expected at
the turuing.point 10 our affairs."