The Cheyenne daily leader. [volume] (Cheyenne, Wyo.) 1870-1884, 1877-07-17
observation-disclosures
A Resume of the Present Situation in the
East.

There seems to be in these cool breez-
es and mountain airs some very strong
attraction for our old friend, Geo. c.
Bates, formerly U. S. District Attor-
ney Of Utah, but more recently of De-
troit, Michigan, for every now and
then he walks in upon us suddenly as
fresh and active. as any young pioneer.
and always stops to pay his respects to
The LEADER and its corps. We had
an unexpected call from Mr.. B. yester-
day, and as he comes now from Ntichi-
gan and Illinois, and Washington City,
we have interviewed him fully.
As to financial matters in Detroit,
Chicago and the northwest, he says,
that "the same paralysis continues
without any immediate prospect of
relief. The shrinkage in value of
railroad stocks, of real estate. and all
property, has not subsidized. Bank
ruptcies continue daily, and the
shrinkage of railway earnings and
rents, continues more or less day by
day. Indeed, railway stocks and real
estate in the northwest have become
practically unstable. Per example:
Baltimore s. Ohio stock worth 1886
January 1, 1876, is to-day a drug at $50
per share; Michigan Central stock,
which in 1874 was worth $40, will not
bring more than S3s now-has no divi-
1an1c md pannot hn cold OF oil In
Detroit and Chicago, real estate, if for
sale at all, will not bring more than
one-half the price paid in 1874, while in
each of those cities the red cards, with
their ominous words ''to rent" r
found staring one in the face by hun
dreds of hundreds. In every highway
and by-way of those cities, business
property and large and expensive dwell
ing houses are totally vacant, or occu-
pied nominally by those who pay no
rent. Rents to-day in the east are at
least 40 per cent. below where they
were in 1874, and in Washington the
new administration is saving at least 40
per cent. on its rents and all contracts
for building. In the banks, however,
money is glutted, and on government
bonds or cash collaterals loans are east
ly made on call at 3 to 5 per cent. per
annum, yet current commercial trade
is tolerably fair, but profits are small,
and speculations of all kinds in stocks,
real estate, produce, ETC., have actual
ly ceased altogether. The anticipated
rise in values from the European war
has proved a myth, and the foreign
market for American products has
ceased, except at bedrock prices. Yet
the prospects for crops were never bet
ter, and in New York, Pennsylvania,
Ohio, and all the northwest, the grain
crops now ready for the sickle promise a
better harvest than at any time during
the last thirty years. The wheat crop
of Wisconsin, Indiana, Michigan, New
York and Ohio will be larger than at
any season for half a century. Still at
this moment in all those states, inter-
est on mortgages is rarely paid-and
property sold under foreclosure of mort
cages made in 1923 and 4. will not
bring enough to pay membranes. In
Chicago, especially, the property re-
built after the fire of 1871, and covered
by mortgages, is fast passing entirely
away from its original owners, to
mortgages and to a few successful
merchants, like Field, Letter & Co.,
and nearly every real estate operator in
that thriving city is actually bankrupt.
When the people com back to their
economical habits of 1S5S-'59 and 1860,
then, and not till then, Mr.. 3. thinks,
values will again revive.
Politically, he thinks the administra-
ton is slowly and steadily gaining
ground; that radical and extreme men
are fast losing all influence and power;
and that the conservative and moderate
men of all shades-men who neither
hold office or want it-are steadily raj
lying around President Hayes, and
heartily endorse his policy; as neither
the President On his Cabinet or any
member thereof, will under any circum-
stances be a candidate for the Presi-
dency in 1880, they al and will admin
lister the government for the benefit of
the people, instead Of a faction, and
will demonstrate Hayes beautiful po-
litical apothegm ''that he who serves
sshis country most will serve his party
''best." From his standpoint, Mr.. B.
thinks Hayes will retire after his four
years, the most popular and beloved
President of the last quarter Of a cen-
| fury, and that the next five years-if
rigid economy, industry, and absti-
hence from all speculations be observed
will restore our nation to its former
prosperity. $50 mote it be-"