, 1877-07-01


mnrketin large quantities and sold for cash,
the difference between the actual proceeds OF
a sale and any valuation made within: athe
Inst three years would be wide one. In
Chicago-and We suppose the same thing
prevails elsewhere-it is not so much de-
cline in the value Of improved real estate as
the inability to sell at any price. Those
who have money prefer to hold it
idle and unproductive to any Investment Of
it until tho general business of the country
has become settled. No person holding real
estate in this city, while admitting its pres
cnt unproductiveness and the general pros
tration Of the Market has any question that
with the general revival of business that
property will resume, substantially, the mar
kct value it had before the general crash.
This statement furnishes, however, some
other particulars which nre worth consider
ing. The receipts of the Company during
1876, from cash prer,iulnu paid over the
counters Of the agencies or forwarded BY
mail, wero s., $50, ,924. Tho cost Of operating
was $6s4, ,7o2, or over 81 per cent. This
Company is one of those whose salary list as
compared with others has been quite mod
crate; yet for every dollar it collected Of the
policy-holders it paid out 81 cents for
salaries and expenses. It's death losses
hardly equaled its salary and expense list.
Though the payments of losses by death
is the object for which it collects premiums,
and to cover which is tho end nominally
sought by the arrangement Of its tariff, there
is as much money paid to its officers and
agents for salaries, fees, and other e1pendi~
lures, as there is to pay losses by death of the
insured
Without any special knowledge as to this
Company, we assume that it is true OF it, as
it is true of all other companies and corpora
tions, public and private, and equally true
of individuals, that, while the shrinkage OF
the value of all Investments and of all prop
erty is notorious, the falling of Of rents,
incomes, aud profits, and the lessening Of
the cash means Of all persons and corpora-
tions are going on, the last and most difficult
thing for men and corporations to do is to re-
duce their own expenses. In cases where the
expenditure is Of other peoples money,
suggestions that expenditures be reduced,
salaries cut down, the number of clerks and
officers shortened, are resented as suggestions
to rob and plunder men Of vested rights.
Thus Expenditures are maintained at one end,
and. if the cash be in hand, increased, while
the worm is at work in the treasury eating
the bonds aud destroying the assets; and
this thing goes on until the investigation
shows that nothing is left. How many cor
porations are there which, as their
assets shrink, as their rents, interests, and
income fall away, oppose to that loss the
Offset Of reduced expcnditure2 How many
public or private corporations charged with
handling other peoples money attempt
abolish Offices, reduce sala-
ries, or cut OF useless expenditures, in order
to adapt expenses to the reduced means and
incomes of the members And yet this is the
only way to successfully meet the universal
shrinkago in vntues. It is the only way for
Governments to meet the loss Of means Of the
taxpayers; it is the only way for private cor
porations to deal honestly with its stockhold-
ers it is the only way for individuals to
deal with their creditors and themselves.
A reduction Of expenditure must accompany
if not precede the loss of assets and Of in
comes, or collapse is iueyitable.