The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1876-05-19


and oven To our Australian colonics we
shull be met by painful Iteration ,o.,,'
lho sau0 tale Of bad tunes. though lil' !
lcrent pensons may beassimrd IN llllll'
oht parts Of the world Coz The result N
will probably be admitted thnl The low
prevailing rate Of Interest and Me con
traction Of industry are oouucctcd to-
ectier as effects Of the same cnusc-a
decline IN prolis--though the unsettled
political condition Of Eastern Europe
has had some influence on the interest
Of money,
There Is ut all times class unong NJ
snyinn money and lookngout for modes
of inyeAing IT, The amount sagod ~.
The ronme Of year varies Considerably
with the variations Of trade, but some
thing and that not nm lncou-ldephln
amount, N anged IN tho worst yonra ul
late wears considerable proportion Of
thc amount saved hr i6nud employ
mcntm the new loans which have hcril
continuously launched IN our markets
on behalf Of American milwayH and ol
struggling States, The decline Of trade
ia the United States has caused on PIE.
cipilatcd u failure in the payment ol
interests ON existing railway sccurillcr
aud TO has bccome impossible 10 IN
troduco any more prospoclu'" lul
the development of railway, while the
bankruptcy Of Turkey the threatened
bankruptcy Of Egypt, and the unsettled
relations Of the East have kept the
3ou,scs clear Of proposals for state
loans. The single apparent exception
---ihat Of the Egyptian loan-scrycd by
It's failure to prove the general rule,
| Those thrifty persons who sayc money
and with all their thrift are tempted Ny
the high interest Of these classes OF .c.
cnntics ARE for tho present frightened
They therefore keep their new savings
unemployed, to the depression ol the
rate of interest, which would have been
depressed oycn irTurkoy had not put
put itself outside the pale Of possible
| borrowers But the contraction OF trade
consequent on n decline of profits Is the
chief cause Of the accumulation OF
money and the real question Is why
have profits declined The new field
Of industry on which the lldmburg D.
0icmT dcscanted remnin open, bat the
profits Of capital in them seem to have
fallen OIL or at all events, are not re
mittcd homo to the capitalist II il
obyious enough that the Immediate
profits Of tile employment Of capital IN
the Western States Of America have
hcen oyerrNimatcd, ormthor Tint their
capacity of sustaining high rates Of prof.
| its was oyerestimated. 'Ihisis shown 10y
the falling oll'upon the return Of the cap.
tnl which has been SUM, in industrial
enterprises, such rs railway, in those
States People forgot how rapidly com.
petition brings down the exceptional
profits Of u virgin area, The wave
has been sent back upon Us, and the
present depression Of trade is the coun'
tcrpait oI rs recent activity Seven
per cont has been followed by onoturaI
law, by two per cent
The interesting question, five could
solve it, would he how long the process
of depression may he expected to en-.
durc but we are sorry to say that no
answer can be given to this inquiry
| ThcGetnn ofprospMity mainly depends
upon the development of the processes
of nhlstry which is constantly going
ON 50 as to lesson the cost Of production,
The inhabitants of the States and colo.
neswhase growth caused such Il re
marketable increase Of trade ~ home
oycrestimAled their powers until they
found they were engaged in exchanges
no longer profitable to themselves. But
we may be quite certain That they will
soon be able TO produce their own com
moditics more chcaply than they have
done, and ~ the cost of production with
thm will diminish contemporaneously
with diminutipn hero, there will he ON
both grounds riyiyal ofcommeroial in
tercourse No one can tell how long
this process OF recovery will take We
may, from II consideration of former
periods ofdepression of similar char
acter to the present, hazard conieeturcs
rs to the duration of the present Que,
! but guessos on the subject would be IDLE,
| tits enough to know that the expert
enco through which we are now passing
ina pnrt OF an ordered progress return
ing upon itself Us surely ms spring fol.
lows winter, . ...