Savannah morning news. [volume] (Savannah) 1868-1887, 1881-07-06
SECOND QUARTER,

AhC ooabCiu6ub luQlCdLtS only d
number OF failures, and, taken in conjunc-
ton with the very favorable reports which
are presented from all the representative
trade centres, shows very accurately the
general condition of trade at this time.
That In extent the business of the country
has attained a magnitude never before
reached, Is beyond all question ; that its
productive power is greater than ever be-
fore, is equally evident; the ability of the
consumer to absorb and pay promptly has
increased while the evidences abound on
every hand of growth III wealth and mate
rial resources equalled by no other country
in the world. There have been condi-
ttons in the six months under review
which might, under ordinary circum-
stances, have retarded the progress of
the general prosperity. An excessively Sc
we're winter seriously interfered with the
business of a vast area OF territory in the
West and Northwest, which, followed by a
cold and unreasonable spring, accompanied
by large losses from freshets, etc. aggrava-
ted the difficulties of the previous months
In the Southern States the trade of the early
winter was exceedingly disappointing,
owing to the unfaVorable weather which
prevailed. Large purchases of merchandise
had been made in anticipation of au ex-
tended trade which did not follow: the
consequence being that very serious diff
cultits were encountered in numer-
Gus localities South, extending over a
wide area of territory. Thus, throughout
the West, the North west, and over most of
the South, the difficulties which merchants
had to contend with during the six months
have been unusually great. Notwithstand-
ing all this, the figures as above presented
indicate healthy condition; failures have
not been numerous, and have been rarely
important, and the losses by bad debts,
which, under such adverse circumstances,
might have been expected to be large, have
been comparatively small.
The failures for the past six months, not
withstandipg the slight increase, indicate a
stability and strength in the position of the
great mass of the mercantile community,
that is in happy consonance with the pros
porous condition of the country generally.
The tendency is, therefore, under such
favorable circumstances, to extend the
lines OF credit very rapidly. The facility
with which weak and unsound applicants
obtain goods, and the growing increase in
the time and ease of the terms of credit, are
particularly noticeable. These are the
first signs of the possibility of a re
vulsiOn, which some fear must come
from the extraordinary expansion which has
occurred everywhere in the last eighteen
months. The temptation is almost impossi-
bic to resist TO extend the volume of busi-
ness, when failures seem so few, and the
general condition so prosperous. To be
conservative, at such period, is a most
difficult policy to pursue, yet it is just IN
such times as these that hidden dangers lie
in circumstances the most unsupported.
Prudence would, therefore, point to the
avoidance OF conditions without which
disaster is impossible; thus, for instance,
the expansion into unwise and injudicious
credits; the locking up in unavailable shape
of active capital necessary for business;
the increase of business and personal
expenses; and, above all, the growth Of
Indebtedness. Signs abound at every
turn of the tendency TO launch
into expenditures, which to prudent
minds are the sure precursors of the reaction
that must come sooner or later. But little
danger can come to those who maintain
their obligations at limit which their ac-
tive assets enable them easily to discharge
or to carry. To use a homely phrase we
shall be "fOOling away cur good times" If
the reaction, which is sure to come, finds us
owing largely, with capital and profits dis
persed almost beyond recall. To many
also the experience of the six months lust
closed has demonstrated the possibility of
doing an enormous business with little or no
profit; hence the possibility of an unhealthy
expansion of trade without a corresponding
accumulation or sinking fund from profits
to compensate for the risks incurred thereby
In the circular are presented short state
ments of the condition OF business in each
prominent locality of the country. No one
can rise from perusal of these without
being thoroughly imbued with the
present, and with the extent,
variety, and availability of the resources of
the country. The crops, generally, promise
most favorably, and the agricultural classes,
having had TWO years of extraordinary pros
perity, are In a condition much more salts
factory and independent than ever before
Even should the demand for breadstuffs be
lessened, the variety Of exports, other than
these, will be so large as to enrich the coun-
try under almost any circumstances. The
prospects for a continuance of prosperity
seem, therefore, to be unclouded. Except
for the vague feeling of insecurity, which
necessarily accompanies such an extraor-
binary expansion as has been witnessed,
there is no reason apparent to threaten the
continuance Of the healthy condition of
trade which now exists.
The following in reference to the outlook
for our city will be satisfactory
SAVANNAH, GA.-The present outlook
for a good fall trade in this section is IA
vorable. A marked improvement in nearly
all branches of business is perceptible, and
shows an increase In volume and profit over
past years. Real estate and other securities
have advanced steadily. Reports received
on the growing crops are favorable,
an increase of acreage in cot
ton planted of two and half to three
per cent. Rice is doing well, but in some
sections corn has been injured by drought
Collections have been backward, and do
not compare favorably with previous sea-
sons. 10 some cases solvent country mer-
chants have been compelled to get extern
sions till fall, but as more goods were sold.
and losses bV failures confined mostly tn |
small traders, our commercial men express
themselves well satisfied with the result OF
the past six months trade. They feel hope |
full for the future, and the general outlook |
is certainly favorable for prosperous bust
ness the coming fall"