The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1877-02-28

so much complained of to the threatening as
poets of political affairs Each is no doubt right
to some extent but careful consideration of the
in each instance only part of the truth has been
perceived, and that the existing state of affairs
cannot be attributed exclusively to any one of
these circumstances alone. but is the result of
a combination of adverse causes, some of which
have for a long time been at work.
In England during the last part of the year
the increasing doubtful aspect of political af-
fairs warranted the banking interests of that
country in maintaining strong position, so
that they might be certain to be able to face
any unexpected contingency that might arise.
This policy has resulted in the accumulation
of 40 less than sll0, 100000 in the Banks of
England and France, the latter having followed
a like policy. Even with this guarded policy
money was to be had in omen market at 2 per
cent and even below that figure. Under ordi-
nary circumstances such a state of affairs
would be likely to lead TO a speedy reaction.
The low price of money would have the effect
of stimulating enterprise OF all descriptions,
which would relieve the market of a consdera-
bic portion of the redundant capital now seek
ing employment. Unfortunately however,
commercial confidence has received rude shocks
in various directions. In addition TO this
Foreign Markets have been discouraging and
adverse, while enterprise at home has been
equally unsatisfactory.
The low rate of interest charged in England
has thus far failed to bring about any reaction,
and these engaged in commerce, manufac-
lures and other enterprises prefer to see their
money lying idle, to investing it under condi-
tion which universally recognised as being
of a most precarious character.
One feature ofimportance in connection with
the present depression is the gradual manner
in which it has been brought about, and the
long time it has continued to exist. 1t would
be difficult on taking retrospect of the past
year, to say with any precision when the stag
nation now so much felt commenced.
Trade and Finance have drifted into an I'M
lucky and difficult position and the very slow
ness with which matters have by degrees come
up to their present pass is probably the most
disheartening feature connected with it. Blow
has succeeded blow so steadily that CONNER
cial confidence has been well nigh reduced to
nothing.
There has been, however little of the nature
of commercial panics familiar to mercantile
men, when inflated prices and over speculation
have been suddenly succeeded by failures, low
rates and stagnation. Were this the case, in
deed affairs might be more pressing, but would
still be more hopeful then they are at the pres
ent time as the reaction would be followed by
counter reaction, in which the lost ground
would probably be more than recovered Con-
trary to what is familiar in times when bust
ness is bad, the badness upon the present
occasion has been brought about rather by
cautiousness them 10y speculativeness. Having
therefore been gradually brought about it can
only be gradually remedied 1t results from
so many adverse circumstances that the most
sanguine can hardly hope they will be cleared
away otherwise than by very slow degrees, or
that there is any reasonable hope for rapid
reaction.
The political causes might be removed by
some sudden change ON the diplomatic chess
board, but only partial relief would be OBJ
tanned, whilst TO remove the deep seated dis
trust, must of necessity be a work of consider
able time. Still there is no ground for despair
ing that existing difficulties will ultimately be
overcome, however slow the process may be.
Now that merchants in the home markets have
ceased sending goods off in almost unlimited
quantities to glut markets already overstocked,
which must tend to bring about more healthy
and more profitable state of trade than that
which has existed ; and though these results
may be of slow growth, there is room to hope
that they will be induced by the severe lesson
now being taught by the depression which has
been mainly caused by previous disregard of
these sound principles.
Unsatisfactory as matters are, it is still q
subject of congratulation that the stagnation
has resulted in great degree from the fact
that mercantile men have been forced in a
large number of directions to become prudent ;
and at least one good may be hoped for out of
so many evils, namely. that in the leading
branches of trade, manufacture and finance,
such reforms will be instituted as will remove
many Of the weak points which have led to the
results now so generally and so justly deplored.