The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-05-15
IfHE HARD TINES ABROAD.
ran uNsvRnsAL nKPRRssloN IN

land have reduced their rates two per
cent II has never been lower, and u
hns very rarely been M low The rates
Of interest allowed on deposits by the
Joint stock banks are OF course lower
than tho bank rate OF discount. and
money ut call receives n return OF ono
per cent only. Concurrently with this
condition ~ tho money market. there
exist. III almost every department OF
industry and Of commerce.. great slug
RiAhnesa or absolute dendncss Of on
tcrprisc, n limited extent Of productions
and n corresponding contraction OF
sales. Tho complaints arc universal
that business ~ dull and profits AFRO low
The statistical returns OF the Board OF
Trade show that these statements arc
not expressions OF gronndless diacon.
tent, for they reveal u great and for
aomo time past u continuous decline IN
tho value and quantities OF tho conmod-
itica IN which We deal with our foreign
customers II Is in agreement with
theso facts that ndvicos from oil the
principal marts of industry tell III the
same tale OF declining and Improbable
business.
There hnn been commercial dnllncsa
In tho United States Tor more than two
years, and Canada has for some time
been afflicted by the depression OF trnde
lon the noighborng Republic. Tho
countries of Europe which have any
commercial character have boon simi-
lnrly affected Germany most promin-
emily, but France To u significant extent !,
and IT VIZ carry our survey to the regions
OF South Americas. To India. and even to
our Auatr nlinn colonies. we shall DO met
by IL painful iteration Of the same tale
of bad times. though different REASONS
may be- assigned In different parts 81
tho world for tho result. H. Will prob
ably be admitted that the low prevailing
ratio OF interest," and tho contraction Of
industry nro connected together M
| effects OF the same cause II decline In
profits though the unsettled political
condition Of Eastern Europe has had
aomo influence on the interest or money.
There Ia Mt all times II class among ~
saving money and looking out for modes
Of invcatng 1t. Tho amount saved IN
the course 81 II year varies considerably
with the variations of trade, but some
thing, and that not an inconsderablo
amount, IA saved Ia tho worst years or
lnto years u considerable proportion of
tho amount saved has found employ.
mont In the new loans which have boon
continuously launched In our markets
on behalf OF American railways and OF
struggling States. The decline OF trade
In the United States hns caused or pre-
cipitated failure In the payment OF
inicrcsta on existing railway securities,
and 1t hns become impossible TO IN.
troduce any more prospectuseA Tor
the development OF railways. while
tho bankruptcy Of Turkey, the
threatened bankruptcy Of Egypt.
and the unsettled relations Of tho East
have kept the Bouraea clear Of proposals
for State loans. The single apparent
exception that Of tho Egyptian loan
served by It's failure to provo the general
rule. Those thrifty persons who save
money. and with all their thrift are
tempted by the high interest OF those
classes Of securities. are for the present
frightened. They therefore keep their
new savings unemployed 10 the dcpreA-
sion OF the rate Of Interest, which would
have been depressed oven If Turkey had
not put itaolf outside tho pale Of pos
Aiblc borrowers hut the contraction or
trade consequent on IL decline OF profits
Ia the chief cause Of tho accumulation Of
money, and tho real question IL why
have profits declined. The new fields Of
industry on which tho Edinburg Re
ric,rfr dcacnntcd remain open. but the
profits OF capital In them seem to have
fallen off, or, ut all events, arc not re-
mitted home to the capitalist. II IL oh,
|
Of the employment of capital IN the
Western States OF America have been
ovcrestimated, or rather that their On.
pacity OF sustaining high rates or profit
was overestimated. This IL shown by
the falling Off upon tho return OF the
capital which has been sunk In indus
trial enterprises. such as railways, In
those States People forgot how rapidly
competition brings down tho exccp-
tionnl profits OF a virgin area The wave
has been sent back upon us, and the
terpart of It's recent activity. Seven per
cent has been followed, by u natural
law, by two per cent
The interesting question, if we could
solve 1t, would DO how long the process
OF depression may be expected to en-
dure but we arc sorry TO say that no
answer can be given to this inquiry
The return OF prosperity mainly depends
upon the development OF tho processes
OF industry, which Is constantly going
on 80 ~ to lessen the cost OF produc-
ton. The inhabitants OF the States and
colonies whose growth caused such u
remarkable increase OF trade ut home
overestimhted their powers until they
found they were engaged In exchanges
no longer profitable to themselves. But
we may DO quito certain that they will
soon be able to produce their own com
modities more cheaply than they have
done, aud, as the cost OF production
with them will diminish contemporaries
ously with diminution here, there will
be on both grounds revival OF CONNER
cial intercourse. No one can tell how
long this process OF recovery will take.
We may, from consideration OF former
periods OF depression OF similar char
acter to the present, hazard coniectures
us to the duration OF the present one,
but guesscs on the subject would be idle.
1t Ii enough to know that the expert
ence through which we are now passing
Is n part Of an ordered progress return
ing upon itself us surely as spring fol-
lows winter
THE LAW.
The Hest Answer Ia the Message III
President Grant.