New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-25
TPOUBLE IN The MARKETS.


There has been considerable pressure in the
money market and depression IN stocks. Inc
usual explanation among spectators IS that the
trouble is all artificial, but those who have read
The TRIBUNE for the past six months know
that it is NOT IL wonld be easier to predict the
infinite variations of Kaleidoscope than to
foretell the action to which the conflicting in
terasts of thousands OF operators might iead
them. But the causes of this depres-
sion are Of such kind that every phase
of the result could be and was pre-
dicted in these columns months ago. Mon
etary pressure this fall was fOretold long
ago "a n consequence of Secretary Folger's
method of employing bis surplus revenue.
Trouble in the iron industry was predicted III
June. when the pudders unwsely demanded
higher wages on a declining market. STRIFE
between Eastern and Western trunk lines has
been constantly pointed out as the inevitable
consequence of the building of countless new
roads. some parallel to Others. and sone de-
signed to grasp traffic whicl others previously
en- owed An inadequate foreign market Tor
cur products was foreseen when speculation
crowded prices upward as late as possible IN
the fall These are results of natural caues,
and not of any manipulation iii the stock
market
Neither is it true, as some imagine, that the
recent depression is wholly due to the recent
Democratic victories. The Congress Just
elected will not begin its first session until De-
cember OF next year. The new crop will have
been marketed, and another raised and partly
marketed, before that Congress can even begin
to talk about any step hostile to industry.
1. t,ro 10
divided Senate and by o President whose asso-
Citations and interests all lead him to pursue
conservative course in financial matters. with
only such prospect 80 far away, sensible men
have not been making haste to sell everything
in panic Democratic victories do produce
alarm when they transfer power to act. Even
when the transfer is partial, they cause some
apprehension when it is immediate. AT almost
any time they tend to check the confidence
upou which advancing markets are built. But
q Democratic victory that will transfer power
only in part one full year hence does not ac-
count for recent events.
The root of the present difficulty is excessive
speculation in products and the resort to
@cOrners" and monopOlies in order to extort
nnnatuI al prices. Iron is Frustrated because the
combination virtually cOrnered the market and
extorted excessive prices two years ago.
Petroleum has been controlled by monopoly
for years. Cotton was held at an unnatural
price for long time, and the growth OF con-
SUMPTION was thereby checked Speculation
prevented the marketing of d part CT the wheat
and provisions produced last year, and delayed
exports this year until crops from other coun-
tries had command of the markets. Now the
farmers, having been accustomed to high
prices and to the fine stories circulated in
order to sustain such prices, hesitate to sell at
present quotations. and the legitimate effects Of
the large crops THE year have been in part lost
thus far The markets have not been relieved,
as they should have been, by the return OF
money from abroad in pay ment for large eX-
ports. We caunot eat our cake and have it too
if we will have all the dear deli ghts of un-
limited gambling and iObbery in commerce, We
must bear some OF the consequences.
The difficulties which really cause depression
are not in their nature permanent. Sooner or
later. people will find that they are not going
10 get high prices for farm products, and crops
will move more freely. The iron business will
probably have to endure some readj Jstment of
wages and of prices for raw materials. The
Secretary of the Treasury will be obliged to
find some other mode of putting out the money
that accumulates in the Treasury. The RAIL
roads will be forced to settle their quarrels in
some way. and tho sooner if tho struggle is
sharp. Mean hile the decline in prices has
already made great difference in the amount
OF loans required, and it is most encouraging
fact that, though it has been prolonged aud
severe, 1t has not involved tho failure OF any
important house. The evidence of general