Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-01-24
THE PHILOSOPHY OF FAILURE.

tendencies of civilization. We have just
received this circular for 1879, and it is
even more than usually interesting. 1t
appears that there were last year 6,65S
failures in the United States, with liabilities
acgregating S9S, 600, COO In 1878 the
failures were l0,47S, with liabilities OF
1884, 900, 600. The decrease for 1879 was
therefore very large, being in numbers
8. $50, and il liabilities 1886, 900, 600.
Nothing could be more convincing proof
than these figures, of the reality OF the
wave of returning prosperity which last
year swept over the whole country with
the exception of the Pacific States. That
the wave did not include the latter is shown
with equal clearness by the statistics. For
example, we examine the table of geographi-
cal distribution and percentage of failures,
and we find that the percentage of failures
in 1879 was as follows: In the Eastern
States, l in every So; in the Middle
States, ! in every 100; in the Southern
States, / in every SO; in the Western
States, | in every $780, in the Pacific States
ami Territories, in every As. 1t is fur
ther to be noted that the average habili-
ties in the Pacific States were greater
1913, 94O) than in the Western States 49,
1881, though in the latter the failures
were in l59, and in the former l in 10.
The prosperity of the Western States
during 1879 was unexampled, as shown
by the extraordinarily small percent
age of failures. In the same region in
1873 the failures were l in every 20, or
more than twice as numerous as
last year In regard to the Pa
cifc States the fact is to be noted that
whereas they escaped the waves OF adj
versity which swept over the East
and West from 1878 EDWARDS, their
decline has been coincident with the re-
vival of business in the Atlantic and
Western States Why this should be so
will perplex the average inquirer, and 1t is
certainly not problem to be solved with
out patient examination. 1t would be
natural to suppose that even if California
did not share the burdens of her neighbors
during the bad years, she ought to share
their prosperity when the reaction came
but it seems as though the occurrence of
that reaction had been the signal for the
collapse of business on this coast. No
doubt it would be mistake to imagine
that any one cause is responsible for this
singular condition of things, but it must
be realized that the very agencies
which separated us from the rest
of the Union as far back as the
rebellion era, and which have maintained
here currency and commercial system
unknown to the other States, have made it
impossible to bring us into harmony with
our neighbors when their fortunes began to
rise. The causes of business prosperity in
California have, moreover, been in several
respects artificial and not natural, for many
years. Trade was stimulated here during
the initiation era by purchasing in green
backs at the East and selling for gold at
greenback rates in California. Our people
were bled fearfully in this way, and moth
ing could have induced them to star it
but the traditions of flush pioneer times
which still survived, to make the masses
reckless and wasteful in money matters.
The practical collapse of the Comstock
Lode, and the uncertainties and apprehen-
sions caused by the blatant advocacy of the
most outrageous communism, came at the
same time TO supplement the depression
caused by the failure of that commercial
bonanza which the gold premium had
proved for years to our merchants. Re-
sumption, in fact, brought no new benefits
to California, but abolished some very posi-
tive avenues of profit which had existed
up to its advent. The local agencies, which
threw everything out of gear, also estopped
the public from longer maintaining that
carelessness in money matters which had
so long characterized the conventional
Californian. They could not afford to pay
the extravagant additions to Eastern prices
which it had become the practice to charge,
but for charging which no justification
existed. Had our merchants been saga
cious enough to realize that a new national
departure had been taken, and that it was
therefore necessary to trim their sails
afresh, we believe that they would have
escaped much of the disaster which fell
upon them. But they made the mistake
of endeavoring to maintain state of
things which had become impossible,
and the result was failure and misfor-
all thoughtful persons for some time
that sooner or later it would be necessary
to bring down prices on this coast to fair
proportion with Eastern prices. When re-
sumption was accomplished the time for
this reduction was really reached, but our
merchants did not perceive the truth, so
they suffered for their lack of perspicacity.
The same hopeless attempt to keep up war
prices after they have reached the bedrock
in every other part of the Union, must
prolong the depression of last year if it is
not abandoned. Only when the facts of
the situation are recognized, and the
onerous. tariff, which custom and nothing
else has established, is abandoned,
will the Pacific coast regain its pros
perfty, and be prepared to share
in the reaction which is enriching
the East and West. In this regard
the isolation of our currency has brought
us evil During the era of initiation and
false values that isolation preserved US
from the feverisb speculation that leads to
collapse, but when the greenback was
brouoht IN mar our want of connection