The Elk County advocate. [volume] (Ridgway, Pa.) 1868-1883, 1876-08-24
THE BUSINESS OUTLOOK,
Returning Conndcnce--ReyIy,na Trndc-.A
View of the SituntIou.

|
View OF the situation,
In few weeks three years will have
elapsed since the breaking out of the
pane OF 1873. The fictitious rise in
values enabled those holding merchan-
disc, stocks, mills, manufactures and
real property to borrow largely from
capitalists and corporations. In many
cases these stocks and properties were
mcrtgaged to the extent of seventy-iive
per cent. of their then estimated value.
In point of fact the actual increase of
national wealth during these three pros
porous yeais amounted only to the sur
plus produced each year, which was ut
terly Insignificant when compared with
the great increase in all values through
out the country. Meantime an enormous
amount of Indebtedness was piled M
The crisis of 1878 was simply an awak
enlng of the whole community TO the
actual state OF affairs. Every one de-
sired to realize; every ono desired to be
paid. Values receded much more rap
Idly than they had advanced. Conf
dence was destroyed, and very Justly so,
as 1t became patent that heavy per
centage of those indebted were utterly
and hopelessly bankrupt. Their mar
gus and equities We're desti Dyed by the
depreciation of the stocks, merchandise
and real properties, which had, under
other conditions, formed the basis of
their supposed wealth. The major part
OF these people put off the day Of reck-
onlng as long MS possible, and hence it
IL thot the number of failures increased
SO steadily during tho three years of
disaster we have just pas ed through.
What percentage of these failures are
fraudulent it is difficult to say; but that
numerous unscrupulous debtors avail
themselves of the facilities which mo
afforded by generous creditors to rid
themselves of indebtedness. and start
afresh with the capital of their victims.
Is beyond doubt. Experiences of this
klnd tends to infuse greater element
OF caution in future business transoc.
tons, which is much to be desired in
TINS community. 1t would seem from
the seml-annual statement of Dim. Bar
low Co., showing the number of fail
ures throughout the United States md
canada, for the first two quarters of the
present year, that the number of fail
ures and the volume of liabilities is very
much on the decline. They eliminated
with tho last quarter of 1875.
when they reached $4,000, 900, declin.
Ing during the first quarter of 1876 to
s6l, 600, 600, and during the second quar-
ter to $43, 100000, showing decline Of
S2l 600, GOO over the first quarter Of
1876 and decline of $27 900 over
the last quarter of 1875. During the
last three years, while failures were talk
ing place III every direction, almost all
business has been transacted on steadily
declining values, and, consequently. at
loss. More than three quarters of the
weak brethren have lquidated by bank
ruptcy. An immense mass OF individual
indebtedness has been actually paid in
ha-d cash, while fully nine tenths Of
the outstanding Indebtedness is amply
secrred, taking even present low prices
as the standard of value. Forced ecopo-
my has prevailed in almost every house.
hold, with almost every individual, since
the fall of 1873.
The great falling of of our foreign
imports denotes one phase of this
economy. The foreign imports at the
port OF New York alone fell from 1920
$50, O32 IN 1873 to 1896, 900, 852 in 1874.
to $780,, ,35S,9OS in 1875, and to S3OG,
l43. 500 III 1876, for the fiscal years end
Ing June 30. New York transacted in
1874 fifty-seven per cent. of the foreign
commerce Imports and domestic ex-
Ports) of the whole country. In three
years tho imports at this port alone have
declined to the extent of BIB, 641, ,666.
and further decline will undoubtedly
be established during the current wear.
Whlle people have bought sparingly of
all descriptions of mauufacturedss goods
the cost of production has been greatly
diminished. The farmer is in want of
everything known as "store goods "
His crops have been abundant during
the last four years. The production has
peen large and greater area has been
planted. The sources of the country's
agricultural wealth are rapidly increas-
ing. AS a single instance of this in
crease the corn production of Kansas
grew from sixteen millions of bushels in
1874 to eighty millions in 1875. Ina
word, all these above enumerated facts
combined have had the effect of reviy-
ing confidence among merchants, manu-
tacturers, builders and traders. The
pubic have come to the conclusion that
the period of depression has passed and
Is about to be succeeded by period of
activity and prosperity. The rebound
VIII not be sharp or quick, nor should
We desire that it should be. With the
early fall we may confidently look for
a very considerable change for the bet
ter IN all branches of business.-NeaO
York Herald.