The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-01-29
nETRosPECT OF 1877.
Prom Hunts Msrchants Magazine.

Prom Hunts Merchants Magazine.
The net profts OF mercantile ant
banking business in the year 1877 wer,
notoriously meagre; the sections o.
the country enjoying the largest meas
ure of prosperity were the agricultural
districts Of the Northwest aud mining
interests Of the Pacific Coast. The
| principal events Of the year having q
direct bearing upon business transac-
tions were the settlement of the Presi.
dental difficulty in March, the out.
break of the European war, which oc.
cnrred In April, the negotiation of the
United States four per cent. loan, the
disastrous railroad strikes in July, the
abundant harvests secured in August
and September. and finally the agita-
tion OF the silver question after the
meeting OF Congress in October.
Under the influence OF these con-
trolling circumstances, and loaded still
with an incnbus of bad debts and a
developing rottenness in firms and cor
pCrations, brought over as q heritage
from previous years, il is hardly sur
prising that the business Of the coun-
try was not able TO show n more sub
stantial recuperation, or to make a
more decided advance toward the firm
ground of sound, healthy and legiti.
mate prosperity. Capital was still
hampered by that uncertainty as TO the
future which always operates as check
on business enterprise, and prevents
the would-be investor from placing his
money on any sort Of time engage
ment, where unfavorable legislation as
TO the currency, or other extraordinary
events quite beyond his control, may
intervene 10 produce for him an ulti-
mate loss. Thus in 1877, the presiden-
dial deadlock, the European war. the
railroad strikes, and finally the silver
discussion, we're all events particular
ly calculated during their existence, TO
create suspense and timidity as to the
future.
Pursuing the history of the year
from its commencement, we find that
the money market relaxed Immediately
after the first week in January, and
continued decidedly easy until August.
Bat Notwithstanding the low rates for
money, business of all sorts was so
greatly depressed by the presidential
difficulty that even the agreement
made on the Goth of January TO sub
NIT the question to an electoral COM
mission brought no substantial relief,
and il was not till the final decision
was made early in March, followed by
the Inauguration of Mr.. Hayes as
President, that the country again
breathed freely. The severe check
thus put upon business transactions
during the first quarter OF the year
contributed 10 bring about the failure
OF many parties who had carried over
a heavy load from 1876, aud had look
ed forward to an Improvement in trade
after the lst OF January 90 enable them
to get relief from their burdens. No
decided stimulus was furnished until
the outbreak OF hostilitIes between
Russia and Turkey, which occurred in
April, and was made the basis for a
considerable speculative movement in
breadstuffs and provisions. At the
Stock Exchange, the lowest prices OF
tho year on nearly all the prominent
speculative stocks, Except the coal
stocks, were made in April, just be-
fore the war news was received, and af-
ter that they took sharp upward turn
although as TO the prices OF both
railroad stocks aud produce the effect
OF the war was too largely Discount
ed" at frst, aud part OF the advance
was afterwards lost.
With the suppression OF the strikes
in the early part OF August, and the
favorable reports Of the grain harvest
corning in at the same time, there was
q l.nt.lnl N,.w II - m.
strong bull combination In the stock
market pushed its campaign vigorous
ly just at this time, railroad earnings
IL the West began TO show an improve
ment, and the prices of leading specu-
lative stocks were advanced very rapid
ly, the general aspect Of affairs in Wall
street being more cheerful than il had
been for many months before.
i. With the meeting Of the special ses-
sion OF Congress in October, new
clouds of uncertainty appeared on the
financial horizon in the shape OF va
fious bills introduced TO unsettle mat
ters that had been for long time es-
tablished. Chief among these were
the bills TO repeal the specie rosump-
tion law Of 1875, or at least that part
Of il fixing the period for resumption
on Jan. /, 1879, and still more import
Bland, aud passed by large majority
IA the House of Representatives., ma
king silver legal tender for public
and private debts TO an unlimited ex-
tent. The effect of the silver bill, ad-
vocated so strongly by members of
Congress from the South and West,
was exceedingly injurious in financial
circles, and although the price OF gold
was not materially advanced, the re-
turn OF u. 5. bonds from London was,
at times, considerable; except for a
general confidence that the measure
would be vetoed by President Hayes,
and not passed over his veto, the im-
mediate effect of the silver agitation
would probably have been much more
decided.
In the latter months OF 1877, the nu-
merous frands, forgeries, failures OF
savings banks and trust companies, ir-
regular hypothecation of securities
held in pledge for loans, and other fla
grant breaches of trust in one shape
or another, contributed TO throw n
gloom over the business community,
both on account Of the serious losses
experienced, and from the suspicion
naturally engendered in mems minds
10y the faithlessDess of parties who
held the highest position among their
fellow citizens.
OF the actual quantity Of agricultur-
al aud mineral products, manufactures
and merchandise handled during the
year, there are no strictly accurate da-
Ia. Bnt the reports Of the exports
and imports, Of receipts Of domestic
produce az the coast, of railroad and
canal freights, Of large products at the
mines, and the unquestioned volume