Northern tribune. [volume] (Cheboygan, Mich.) 1875-1885, 1880-05-29
THE BUSINESS OUTLOOK.
From the Detroit Post and Tribune.


There has been no time since the re-
sumption Of specie payments when the
country was in more healthy cOndi-
tiOn than it is at the present hour. 1t
was natural that the feeling of security
created by resumption should give the
impulse to business that it did. When
this impulse was first felt the only cause
of apprehension for the immediate fu-
ture was that the reaction from the eX
treme dizziness of the preceding years
should be too instant and violent. In
crease of consumption beyond impera-
tive wants is promoted by prosperity,
and that in time adds to prosperity. FIRE.
quently this increased consumption is
an inspiration. But whether it finds its
cause in belief in better times, or in
their actual existence, unless it is wide
spread and permanent, the prosperity
based on it is an illusion. Fortunately
the increase of consumption that began
in 1879 has not proved deceptive. There
was a danger at the beginning of this
year that it would be checked by the
high prices which were created by an.
Over-supply of money suddenly turned
loose upon the country, and the specula-
tive spirit which it created. Happily that
danger is past. Prices have returned to
a point that encourages the largest con-
sumption and yet gives reasonable
profit both to producer and manufacture
er. Ef
People who regard an increase of bank
loans as an evidence of prosperity are
sometimes grossly deceived. A loan made
to hold grain, or wool, or iron, for rise
in the market is no evidence of prosper
ity; rather the reverse, 1t proves that
the supply, at the prices which are rul-
ing, exceeds the demand. This is not
an advantage. 1t is no gain to have
grain, or wool, or iron or any other
commodity held at price above the rea-
sOnable capacity of the people to pay.
The moment they reach that point peO-
pie will limit their consumption to their
absolute wants. and either compel sus-
pension of production, or increase the
difficulties that holders will have in
finding future market.
In January of this year many articles
of domestic production had reached that
point. Holdsres found the people were
unwilling, or unable to continue the
lavish consumption of 1879, and they
had then but this recourse; to call in
the banks to aid them in carrying their
stocks and suspend production, or to re-
duce prices. To suspend production
would have enforced idleness upon a
great number of people, and of course
would have limited the general capacity
for consumption. The banks could east
ly have aided i'm bridging over a policy
of this kind. But the unwisdOn OF 1T
was apparent. Whatever relief was in
it was only temporary, and it was full
of embarrassmentS for the future. The
other alternative was to lower prices to
the point that invited the largest posi-
BILE consumption at home and in the
foreign markets that we supply. Wise
ly, the alternative wasaccepted. Prices
of leading staple articles, like wheat,
corn, iron, wool. mess pork and the like
are 10 to 80 per cent. greater than they
were ten months ago, though they show
a strong reaction from the extreme
prices of December and January. But
the January and December prices were
speculative and accessive, and were only
made possible by the lavish loans of the
banks. Stocks Yereaheld not consumed.
At present prices the stocks that accu-
INFLATED during the winter are disap-
pearing; consumption is increasing;
production is reviving; and if the lesson
of the winter is accepted, there is no
doubt long course of prosperity before
us. At all events, the business of the
country is now flOurishing, with no Wis
ible causes for alarm.