Omaha daily bee., 1880-07-07
Finance and Trode.
Boston Advertiser. july q

DSosoh huNcAtbDiD July a
The close of the half-year is a suit.
able occasion for a brief review of the
financial and commercial events, and
for a forecast of what may be ex-
pscted in the near future. The year
1880 began during a period of remark
able and brilliant business activity
and promise. During the six months
that have since elapsed the country
has passed through a season of sharp
reaction in all departments of bust
ness; but the reaction now seems to
have spent itself, and a season of Wig
orous recovery has set In. Prices of
goods, which were advancing in Janu-
airy and continued to advance for a
month or two ~afterward, have had
a rapid and prolonged decline.
To a strong demand for consumption
and by spectators succeeded an al
most complete cessation of inquiries
fer and purchase of goods, with ex-
ceptions in favor of some classes of
merchandise of steady consumption.
The stock market, which is usually an
excellent indicator of the condition of
general business, proved to be SO in
this case. A sharp and long continued
decline took place, not only in the
shares which have only a future and
speculative value, but in the most
solid investment securities below the
grade Of government bonds. The
money market has fuctuated
wildly and widely. At the
beginning of the year it was working
into q state of comparative ease, and
after a few weeks was extremely easy.
Then it suddenly grew tight, and for
a short time the rate of interest was
unprscedentedIy high. During the
last two months money has been grow
ing more abundant, and car be.
had at extremely low rates. Mean
while the other conditions have been
reversing themselves. The stock mar
ket has grown active, and all securi-
ties are again advancing; the demand
for good has revived not q little, and
the tendency of general prices is to
harden, If not to advance.
The summer season is not favorable
to very active trade, but there is now
q promise of more than usual business
the warm weather, and of an
early and profitable summer trade.
Let US consider the conditions which
generally the business sit
The crops bid fair to be ex-
s%ellent, as good or better, on the
as last year. They are not
beyond the reach of drought, or flood,
Or insect, but it would be borrowing
needless trouble to count upon q dis.
as.er. Cheap food is thus assured.
What the foreign market for our sur
plus produce may be cannot be known
1T present, but we may be sure
that if the demand for food should be
light, that for cotton will be, by that
very circumstance. improved. Then
we haYe, in the returns of railroad
earnings, a fine test of the ability of
the people to consume goods; and an
of these figures show that
never before was there 80 general pres.
as now prevails. The demand
for staple manufactured goods is once
more steadily good and improving.
There is nowhere a lack of employment
Tor labor, and the rate of wages paid
Is a guarantee against want in any
quarter, while it also cuts off to a
great extent the necessity for a waste
If public money in relieving those
Who might, under other circumstances,
been on the pauper
The events of the last
lew weeks have treasured
hose who feared q disturbance of our
monetary machinery from a drain of
gold to Europe. On the first of the |
present month, when exchange was
and most of the financial
prophets were preparing the people
.or gold exports, we gave reasons for
believing that if any gold should be
sken from us the amount would be
7ery small. 1t is now almost certain
hat none will go. On the contrary,
he price of exchange is at the present
ime in such a weak and declining
that nobody will be surprised if
money were to be sent to us within
TX weeks. But at all events we are
sfe from q drain of gold, large or
mall, and no enterprise need be
by reason of any apprehen.
ion of money stringencv.