Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1877-07-19
FIRST QUARTER.
SECOND QUARTER.
The failures in the state of Illinois

lllt III tIlc SlcttG vi
outside of Chicago during the first six
months of 1877 numbered 244, with LA
bilities amounting to $4,113, 800, against
206 failures and $3,095,000 liabilities in
the first six months of 1876 The fail
ures III the city of Chicago for the first
half of 1877 numbered 10Y, with liabili-
ties amounting to 81, ,710,600 against 93
failures and $500 900 of liabilities in
the first half of 1876.
According to the circular all the con
ditiOns seem to favor better times, vet
there appear to be fatal barriers to
their return These conditions are
briefly stated to be good crops, high
prices therefor; small imports, abund-
ant and cheap money; Il settled pOliti-
cal condition, q sustained public credit
and the promise of another abundant
harvest. But the circular adds:
The experience of the past does not
permit the hope that all this will bring
around Il prosperous or satisfactory
trade. Something more is needed; but
what the true remedy IS no one has yet
discovered. Numerous explanations
are, of course, at hand; and it is elo-
quently urged that the adoption of this
or that policy would restore confidence
and prosperity. Yet the fact remains
that, in the presence of ali favoring
conditions, depression reigns, values de-
cline, and business is restricted and I'M
profitable Judging from the state of
business abroad, all this is not chargea-
BILE to the peculiar disabilities under
which this country labors. Other ma
tons, with a gold basis, a low tariff, and
not chargeabIe with either public or
private extravaganza; are suffering even
to a greater extent than the United
States, with an absence of many Of the
advantages and prospects which this
nation enjoys"
Referring to the now generally re
ceived impression that years of econo-
my and liquidation must follow years
of expansion and extravaganza,
the agency attempts to illustrate the
nature and extent of this expansion by
the rapid growth in the creation of
debt. The figures given are as follows:
1.-The figures not accessible show that
the national debt, as compared with
S64 100000 in 1860, amounts to 2,200,-
100000 in 1877; that the states debt
amounts to 100000, the municipal
debt to 81, 900, 100000, the railway debt
s., 800 100000; the discounts and loans
of national and other banks to another
81, 900, 100000, and the loans by insur-
ance and other mortgage machinery
may be safely estimated at another
$500,000,000 Grouping all these rough
ly together, the visible Indebtedness, of
which some financial conception may
be formed, amounts to the vast sum of
$7,375, 100000. The curious can calcu-
late how far the interest on this sum, if
regularly paid, would absorb the yearly
product of the natural and other re-
sources of the country"
The calculation which the curious are
here invited to make leads to the start
ling conclusion that the interest on this
debt, at 6 per cent, amounts to over
$430, 900, 900 per annum-a sum larger
than the surplus cotton and grain crops
combined. The circular proceeds to
draw some further inferences:
The rapid increase in debt-creating
power which the above figures imply,
in some measure indicates the expendi-
ture for permanent purposes in the last
fifteen Years. To what extent that
growth of expenditure is in excess of
the growth of population, or the in
crease IN consuming power, finds its
fullest illustration in the number Of en-
terprises now proftless, and especially
those devoted to articles at the founda-
of human wants, such as iron, coal,
woolen and other textile fabrics. lumber,
etc, etc. A leading economist in re-
cent article says: The fact is now
very generally recognized that the capi-
tai which has been invested
in the United States since 1860, in iron
works and woolen mills, and which rep
resented the savings for years of a very
large number of persons, has been in
great part as much wasted as though
destroyed by fire or sunk in the ocean.
In view of the enormous expansion
which the above increase of indebted
ness illustrates, Is it any wonder that
business Is depressed and slow of recov-
cry? Applying the same principles to
a community as TO an individual busi-
ness man, the result of such growth
of obligation, with such an inability to
/ pay, Is that disaster and long process
of liquidation is sure to follow. The
/ growth of the country and the devel-
/ opment Of Its varied resources, econo-
my, and the steady application of con-
servative business principles, in time