The Hawaiian gazette., 1877-01-17
The Revival Of Business.

There are unmistakabe evidences of the revi-
val of business all over the Eastern States. The
depression has been long and severe. A great
many manufacturing establishments formerly IN
prosperous condition were compelled to cease
operations altogether. Stocks of goods accUmu-
lafed, many wealthy manufacturers failed, aud
thousands of people were thrown out employ
ment Others found their incomes reduced below
the point OF comfortable living The business
depression has been more severe than any which
has occurred since 1887. There was this differ
ence: In 81 the currency dreadful con-
dtion. There was at that time no national cur
rency except gold and silver, and that seldom
seen. The greater part Of the currency of Wes-
tern Banks was at discount ranging from ten
to thirty per cent.
During the late depression the country has had
currency which was as good in State as in
another ; but il was everywhere below par by ut
least ten per cent. 1t has been said 10 a general
way that production far ahead Of consump-
ton. But this solitary fact does not wholly ac-
count for the depression. The truth is, private
bankruptcy from fast living became general. Not
only was the public Indebtedness OF the country
enormous, bnt the private indebtedness was still
greater. Rents had gone up more than hun
dred per cent; everything was inflated. and the
spirit Of this imitation extended everywhere to
wealth. Economy in private life something
not to be tolerated, Private resources were
" honeycombed," aud incomes we're eaten up
with mortgages
Then came the shrinkage Rents decreased
because there was no longer ability to meet such
demands. Brown stone houses stood without
tenants. The man whose income did not exceed
three or four thousand dollars year, could not
pay it all out for rent He sought less preLen-
tious quarters-went into the country perhaps;
economical in various ways and worked and
waited for better times. puring all this period
the country was as rich as ever n natural resour-
ces. The industrial product lessened in
some departments and increased in others.
There wis less manufacturing, because the sur
plus goods were piled up waiting for consump-
ton But there was not an acre less Of cultiva-
led land. In fact, there was continual increase
of agricultural production. The country was all
the while becoming richer. Enormous wastes
had been stopped. There had been great many
recoveries from the verge OF bankruptcy. Others
had gone to the wall. settled with their creditors
as best they could, and had taken new start
and were inspired with new hopes
There ls now perceptible all over the Eastern
States business reaction The young food"
Of prosperity has set in, and, for aught can
see, this prosperity will continue for some yeurs
But once IN about ten years the country s over
taken by business depression more or less Sc
we're. Better times do not set in until there has
been a re-adjustment Of debts and Credits and
great many business changes. California has
been one Of the few States which has pro6ted IN
an incidental way by the e hard times in the
Eastern States Immigration was largely in
creased and the growth Of town and country in
the matter of population never was greater. This
immigration has diminished somewhat Of late, but
there is still healthy current setting in this d.
rection. 1t is remarkable too. that the business
depression in the Eastern States did not much
affect business here. The resources Of this coast
as we'll as the markets, are isolated, aud, at best
are only remotely dependent upon the Atlantic
States.
The surplus produce of the State is mostly
shipped to Europe, and the greater part of the
freight money earned by deep-water ships is in
the carrying trade between this port and Euro
pean ports. The product of the mines has not
been affected by the stagnaton of business on
the other side of the country. The price of sill
yer has been regulated by market which was
largely outside of the United States. The revI-
val of business in the Eastern States will have
some effect here but not in such q direct way
as many suppose. 1t will be remembered that
our period of greatest depressions occurred when
there we're flush time in the Eastern States and
the contrast then was so great that hundreds
hero went over and swallowed the greenback
heresy and boldly advocated paper currency as
the only remedy for the stringent times in Cali
fornia. We recovered from that depression with
cut any help from the other side of the country,
and afterward heard the other side Of the argu-
ment presented in the Atlantic States. OBJ
serve how California prospers with an exclusive
gold and silver currency. When we get that
We shall have a return Of good times" As we
approach the date of specie resumption we have
encouraging signs of a revival of business aud
new era Of prosperity al over the Eastern States.
s. f. Bulletin.