The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-07-14

In tho third quarter Of 1876 there II
with liabilities amounting to ssh 1923. 237 and 245O
during tho corresponding period OF 1876 with liabi
ties amounting to $47S57,37 In the fourth quarter
OF 1875 there 2405 failures, with liabilities OF
$7O 1888 $780, and during the corresponding period in
1876 2042 failures. with liabilities amounting 10
S34, Si4, 1913.
II Is evident says tue CIRCULAR that the business Of
the ountry improves very slowly. The results Of the
han OF the year clearly Indicates this Tor
neither as TO extent or protablcness are there many
Signs OF improvements while the recovery stabil-
ity OF values the indications are 10 say the least,
CERTAIN and untrequently the tendency still de-
cidedly downward. Ali the conditions seem TO favor
times yet there seems TO DO some atai barriers
production and OF good prices for the products OF tho
esrt the gures indicating the value OF exports
large satisfactorily this, too IN the face Of
restricted imports, indicating an economy on the
OF the people winch ought ere TINS 10 have
borne better results Money is most abundant and
cheap capital steadily ACCOMPLISHING IN centres where
It's presence depreses rather than encourages trade
The political condition Is most satisfactory. all disturb
ing elemsn.s having happily disappeared. while the
public credit never more firmly established
more ably administered. Add TO all this another year
OF wondrous production continued nigh prices Tor
all the country has 10 spare, and there seems no
ment wanting TO complete recovery. Yet toe ex-
pericnce Of Tue past does not permit the hope that all
this viii bring around immediately prosperous
satisfactory trade. Something moro is needed; but
what the remedy is has not yet been discovered.
Numerous explanations OF course at hand, and 1t
Is eloquenty urged that the adoption Of this that
policy would restore conhdcpce and prosperity. Yet
conditions depression repns, v,iucs decline
ness is restricted pa unp olabe Jud9
ing from che state OF business abrOad all tis IS not
chargeabie TO the peculiar disabilities under which
this country abors. Otner nations with gold basis,
a low tarn and MT chargeable with either public or
private cxtravasance, arc suffering even to greater
extent than the Unttd States, while they have not
many OF tie compensatiug advantages aud prospects
when this nation enjoys
PROBLEM TO BE SOLVED.
The problem embarrassing one. and, Ike many
Others that comprehension, eau only DO
must It's ulilment, and Tor years OF overproduc
lion, overtrading ana overcrowdiny all avenues OF
onnerce there must succeed years oil economy, OF
liquidation and adjustment 10 smaller condition OF
tniros such ns is now beng experienced. Tho mis-
take the panic OF 1873 has been that the nagni
tude the expansion, not only In this country, but
the world over, nus not been sufficiently appreciated;
hence hope has been entertained OF All carly
return 10 prosperity. The figures which illustrate
most windy the nature and extent oil this expansion
those that relate 10 that most dcusivc yet most
fatal OF all cxpcrences-thc creation of debt. Tho
charges which this DEBT Involves when Is POSI-
taxes the industries and fade OF the country; bat
when largo portion oil the money invested
unprodas.ivo and ySlss no return with
r,er which encCiually ressrds the return OF
confidence and leads to endless complications. The
figures accessible show that the national debt,
US compared with S64, 100000 ia 1850, amounts 10
22Uo 100000 in 1877 that the saies' debt amounts to
$40 600 cipal debt to $1,000 900, the
railway debt 81 800 0Uu 000 the discounts and loans
OF national and other banks 10 another $1,000 900 900,
and the loans by Insurance and otner mortgage
machinery may be SAFELY estimated at another
$500 600 900. Grouping all these roughly together
the visible Indebtedness, OF which financial
ception may formed, amounts 10 the vast sum OF
$3.50 co., OOO The curious can calculate how far the
interest on this sum, II regularly paid would absorb
the yearly product tho natural aud other resources
Of the country.
| DIFFICULTIES OVERCOME
The apd increase deDt-crcating power which tho
| above figures imply In measure indicates tho
| expenditure Tor permanent purposes in the last
fifteen years. TO what extent that growth oil expen-
| d,ture IL IN excess OF tho growth vi popuia-
ton or tho increase IN consuming power, mas
its fullest illustration IN the number OF en-
| terprises now prontiess, and especially those
devoted to articles ut tho foundation OF hu-
| man wants. such iron, coal, woollcn and other
textile fabrics lumber &c, 81. leading economist
In n recent article says''Ihc fact Is now very gen.
orny recognized that the capital which has
been invested IN Tho Uned states since 1850 in iron
works and woollcn MILF, and when represented tho
savings Tor years OF very large number OF persons,
has been great part much wasted ns though de-
sroyed by ire sunk IN the ocean" 10 view oi the
debtedness illustrates is 1t any wonder that business
IL epresscd and slow TO recoverY Applying the same
principles to the community as TO an Individual busi-
ness man the inevitable result OF such growth OF
obligation, with such inaby TO pay. Is that
disaster aud long process Of liquidation are sure 10 ol-
! low The growth Of tho c0untry, the development Of
lis varied RESOURCES economy and the steady app'ca-
ton of conservative business principles, In time may
probably employ all the facilities tho last ten years
have created adjust tins burden oil deOt SO that
can be carried and eventually repaid Only In proper
ton us that period Is approached may more healthy
ard nroaperous condition be- anticipated but the I'm