The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-10-29
The Causes OF Irard Times In England.


London Time, October IS.
It is at frst sight surprising that we
should be in the midst Of difficulties like
those which are now upon US after the
partial crisis Of 1873 and the still. more
serious failures Of 1875. The common i'm.
preston Is that with such troubles as we
have had the insolyencies which had been
created since the great panic Of 1896 would
before now have been found out and eS:
posed. It Is considered unnatural that
after two or thee years OF freedom from
imitation, when It could hardly, It is
thought, be undue credit, because there
has been 80 little credit OF any kind, very
much bad business should now come 10,
light. Once crisis occurs, nothing more Is
looked for OF that nature until credit has
revived again, and time has been given for
the luxuriant growths Of an inflated period.
But the cycle Of prosperity and adyersity
10 business is not quite so regular rs this
opinion would assume. Events may oc-
cur to shorten or prolong a period OF pros!
perity and good credit. II seems certain,
also, that since 1875 much has happened
10 prolong and aggrayate the depression.
The haryests oflS75, 1875, and 1877 in this
country were all below the average, that Of
1877 being the worst Of the series. The
very excess Of the discredit in 1875 was
likewise calculated to prolong the result |
ing depression more than any ordinary
panic, until, in combination with other |
causes, q still lower depth Of depression Is
reached. The very time in which firms
which were assisted in 1875 were expect
ed to recover themselves has in fact |
been q time OF fresh losses and heavy falls
in the price OF staple articles, OF these,
the fall in silver, which specially Affects
the Indian trade, where the chief failure
already reported in connection with the
City OF Glasgow Bank has occurred, Is
perhaps the most important In conjunc-
tion with the famines in India and China,
it has greatly aggravated the weakness OF
the entire export trade to the East; the
temporary recovery OF silver in 1877, and
the spurt Of trade consequent thereon,
having little changed the net result Of the
great decline Of 1875. 4But the, decline in
the price OF other metals has been even
more serious than the fall in silver. In
iron the fall is not far short OF 80 per cent.
Taking Scotch pig as the test We find
that towards the end Of 1875, notwithstand-
ing the great fall which had occurred in
1874, the price was still 6S shillings per
ton; it is-now AZ shillings only. In cop.
per the fall is almost as great. The price
OF copper (Chili bars) in October, 1875,
was ESQ los per ton It Is now eco only. Il
The decline In other raw material, such as
cotton and wool, II we start from 1874, has I;
also been considerable. But we need go
little into details. The explanation that o n
large part OF the falling OF in the Board /
OF Trade Returns Is TO be accounted for
by the great reduction of. prices, which
has been steadily going on for several
years is only too familiar. It is inevitable /
that such fall OF price should complete
the ruin OF merchants, manufacturers, 4
and bankers, who were counting on 0
rise to pull them through, to in.
crease the margins Of the borrowers,
and enable the advances from the
banks to be paid of. Instead, the mar
gins have been diminished or more than
quite eaten away; the banks have been
called on day by day 10 throw good money
after bad, and others as well as the City Of
Glasgow Bank have probably been weak
enough to yield to the temptation, though
we trust not on the same scale. Now, the
day Of reckoning has come in the shape Of
events which increase the yigilence lof 3
every one, and force the most reputable
firms to 20 into partial liquidation. There
must be no small boldness somewhere in
giving assistance II the bad business which !
all these circumstances hayeprodneed end
in no more seriousfailures than what have
already occurred,