The daily gazette., 1877-07-17
THE BUSINESS 0UTLoOK,
From the Reading Eagle.


From the Reading Eagle.
The Pittsburg Post says that the busi-
ness VI the country improves slowly,
while in the recovery II stability OF val
nes, the indications are uncertain, and
not unfrequently the tendency 10 still
decidedly downward. The statistics Of
failures, also which are periodically
furnished to the public by the Mercan-
tile Agency OF X. G.. Dunn & Co.,
are not reassuring. as we gather from
their circular Ist issued. The failures
for the United States for the first six
months of three yeare are stated as fol-
lows;
No. Of Failures Liabilities.
First half OF 1877, 4,109 $99, ,6O6 900
Firss frs. hsif hs Of Of 49, & sss sSS
1t is stated that the 1ailures for the
first six months Of 1876 were exception
ally large, and hence it is inferred that,
80 far as the number is concerned, the
failures in the first six months Of 1877
are larger than for any.previous similar
period. In the aggregate of liabilities
a decline is noticeable. though for the
past quarter the average Indebtedness is
more than maintained, standing at $685.
972. The Dunn circular says all the
conditions seem to favor better tunes,
yet there appear to be fatal barriers to
tneir return. These conditions are
briefly stated to be good crops, high pri-
ces therefor; small imports, abundant
and cheap money; a settled political ccp-
dition, a sustained public credit, and
the promise of another abundant har-
vest. But. the circular adds:
The experience Of the past does not
permit the hope that all this will bring
around prosperous or satisfactory
trade. Something more is needed; but
what the true remedy is none has vet
discovered. Numerous explanations are.
OF course, at hand, and it is eloquentIy
urged that the adoption of this or that
policy would restore confidence or pros
perity. Yet the fact remains that, in
the presence OF all favoring conditions;
depression reigns, values decline, and
business is restricted and improbable.
judging from the state of business
abroad, all this is not chargeable to the
peculiar disabilities under which this
country labors. Other nations, with a
gold basis, a low tariff, and not chargea-
Bile with either public or private ex-
travagance, are suffering even to
greater extent than the United States,
with an absence of many Of the advan-
tages and prospects which this nation
enjoys.
Referring 10 the now generally re-
ceived impression that years of economy
and liquidation must follow years of ex-
pansion 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 probably open to criti-
cism. but, put in this shape, they are
very significant:
The figures most accessible show that
the National debt, as compared with GA
millions IN 1860, amounts to 1900 mil
lions In 1857; that the States debt
amounts to 375.000 600. the municipal
debt to ,000, ,000, 600, the railway debt
100000, 900; the discounts and loaps Of
National and other banks to another
,OoO, 900 900, and the loans by insurance
and other moi tgage machinery may be
safely estimated at another 800, 900 900.
Grouping all these roughly together,
the visible indebtedness, of which some
financial conc 3ption may be formed,
amounts to the vast sum of 81 ,275, 900 900.
The curious can calculate how far the
interest on this sum, if regularly paid,
would absorb the yearly product OF the
atural AMI other resources of the couu :;
try.
The calculation which the curious are
here invited to make leads to the start
ling conclusion that the interest on this
debt, at six per cent, amounts to over
$3.50, 100000 per annum-a sum larger
I than the surplus cotton and grain crops
combined. The rapid increase in debt.
creating power which the above figures
imply, in some measure indicates the
expenditure 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 it
fullest illustration in the number of en-
terprises, now profiLless, and especial,
those devoted to articles at the founda
tion OF human wants, such as iron, coal
wollen and other textile fabrics, lumber
etc, etc.