The morning star and Catholic messenger., 1878-02-17
THE BUSINESS OUTLOOK.

The material and commercial interests
| of tho United States are on the highway TO
recovery. Extensive as the failures have
! been since the panic of 1873, yet making
due allowance for the Increase of popuia-.
tion and commerce they have been IN no
greater ratio than during the years affected
by the panic of 1857.
In the four years including and following
the panic of 1857 the annual amount of
| failures averaged $l32 100000, which,
divided by the census population of 3D.
400. OO0 in 1860, would represent about
81, 90 per head on 45. .h00,O09, the generally
admitted estimate of the present population
of the country.
The feeling of depression which has
accomp panied the failures of the last five
years, and the cry of hard times, have been
siezed upon and greatly magnified by the
debtor class throughout the country, ami
mated apparently by desire TO get an
ad vantage over those who have trusted
them. Western real estate speculations,
like those in our Eastern cities, have ruined
all those operating on borrowed capital.
Chicago, after the fire, was largely rebuilt
by Eastern money borrowed on mortgage.
During the last two years much Western
of mortgages through the medium of FORE
closure sales. The same process has been
going on here and in other large cities
throughout the more populous States of the
Union. The salutary effects OF these sales,
when taken in connection with the weed-
ing out of weak firms by failures, bank
| ruptcies, and assignments, is very great
indeed.
Through these inexorable means, and at
the cost of much individual suffering, all
real and substantial values have been
placed on something like a hardpan baeis,
and thousands of ective business men are
thus freed from \ load OF debt.
ManV reasons could be ad0uceQ to chow
that the slow bat steady improvement in
| business affairs which we have of late from
| time to time recorded in these columns, is
likely to continue and increase till the re-
| covery is complete and permanent. The
wave of commercial depression has been
| rolling steadily toward the Pacific. where it
is eginning to waste its force, and may be
expected soon to disappear. Ia the Missis-
sippi valley,the roads are once more in good
condition, aud the farmers are Rushing for
ward their produce. Increased activity in
trade is reported from ST.. Louis, Chicago,
Milwaukee,, St. Paal, Kansas City, and
other Western centres. AS the farmere sell
| their grain they pay up last falls bills and
make new purchases. The eastward move
| ment of flour and grain from Western lake
! and river towns was unprecedentedly large
| durCg the month of January, and prom
| ises to continue at an increased rate during
the rest of the season. The clear cold
weather we are now having has also won
derfully frightened up things at the West,
and good sping business is antici-
pated.
The Improvement in affairs in the South
ern States during the past twelve months
has been more marked than in any other
part of the country, as is evident by the
steady decrease in the amount Iof failures
during the last three years-from $26 ,000,-
600 in 1875 to $17, ,300,0 900 in 1877. These
| figures speak we'll for the Southern mer-
chants, and cannot but greatly strengthen
their credit. 1t is believed that the South
ern and South western trade Of the present
year will be largely in excess of that Of
1877.
The greenback initiation caused genera
rise in prices and in nominal incomes
under which people imagined they were
becoming rich. This delusion led to ar
increase of expenditures and to reckless
speculation. Credit became unduly ex
panded, and thousands bought other peo
Piles property without being able to pay
for it. In September, 1873 the bubble
broke. Since then we have had a continu
GUS and for the most part forced readjast
mont OF the unnatural relations existing
; between debtors and creditors. The agri
cultural, manufacturing, commercial ant
financial interests of the country are ono
again in a sound, healthy condition.
M. Renan, who sometimes says q gos,