New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-07-14
FINANCIAL PROSPECTS.

1t appears to The PQU Mall Gazette that the
United States is on the brink of another COM
merciai panic. That journal is not recognized
IN tins country Us having 50 exalted Il reputation
for financial wisdom that its observations need
to he cahled III haste To the American press.
Probably nobody would have paid any attcn-
ton to them if they had not been particularly
useful at this time to a clique of spectators.
The mischief of these speculative devices is that
thoy tend to disturb confidence i'm legitimate
business. What may happen in the Stock Ex-
change, here or III London, comparatively few
people need care. But it is not well that
groundless financial alarm should be created
at this time, when the general business of the
country is unus ually healthy and prosperous.
The remarkable success of the Government in
funGing its five and six per cent bonds, though
gratifying to every wcllwsher Of the country,
has naturally excited little surprise abroad,
and possibly little jealousy. 1t may be
doubted whether even the British Government
could borrow $4,000, 900 in two months at
81 per cent upon bonds payable at its pleasure
At all events, 10 such loan las yet been elected
By any other Government and it proves that
there is Il vast amount OF capital here, as vet
unemployed and seeking investment. This
may be an indication Of health or Of disease.
but the fact that much of the unemployed CAPT
tai here comes from abroad shows that foreign
capitalists do not generally share the apprchcn-
siOns which Tile Gazette EXPRESSES
The volume of business in this country is
very much greater than ever before, and the
! tnghoh observer apparently jumps to the con
clu,lon that the increase has been mainly spccu-
latiyc and unhealthy. Bat no one who is mod
ctatcy acquainted with the facts will accent
| tiat explanation. The truth j, that bu.ue,,
las rarely been more free from speculative OK
Iausion. In banking circles it is well known
that the applications for commercial! loans have
Of late been wonderfully small, and yet the cX-
changes prove that the volume Of business is
large beyond all precedent. The proportion of
business done upon cash basis is larger than
ever, aad the proportion Of business done with
out borrowing, on the capital OF the firms en-
gagged, IS larger chan ever. These are fact, 50
well known here that no one will dispute them
certainly no capable banker will hesitate to
bear witness to them. Nor has there been any
speculative initiation in prices, unless it be in a
single class of commodities the hog products.
Prices in that branch of trade have been sharply
al .onccd, whether with or without reason is in
dispute. But wheat, com cotton petroleum.
and many other importan; articles of com
mcrcc, are selling to-day at lower prices than
they commanded one year ago although at that
time there had just cnl.ninatcd Il tremendous
reaction from the unnatural advance in the
winter OF lS19-'SO. The bottom prices then
reached before new and gradual improve
ment began, were generally higher than tie
prices at which the same products are now sell
ing. Certainly, it cannot be said that there has
been any dangerous imitation of values in lcrit
innate business.
Nor has there ever been time when the earn
lngs OF the people were on the whole IA large
as they are now. Wages are good, while prices
are relatively low, and the savings of the
laoorer 1t Is safe to say are larger in almost
every branch of industry than ever beforc
These savings, amounting TO more than
$500 100000 yearly, are not wasted in the
purchase Of articles OF luxury imported from
abroad, Tor 1t IL n very significant fact that i'm
ports Of that class have been unusually small
In he main, the savings of the people 90
through banks and other financial institutions
into new FARMS mills mines and railroads. and
are employed to enhance the productive power
of the country.
1t is not the purpose here to consider whc her
speculation has or has not pushed the prices of
stocks too high If the English journal had no
ether object than to serve the purposes of one
set OF spectators, its observations might Ice
left to produce whatever effect they could in
that quarter. The important fact is thai there
IS TO sign OF weakness or uusOundness IN the
condition of general business. Alarms in T.
quarter are alb oiutely gratuitous and unwul-
Ianted. We may have large OF a small VII,