Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1882-05-18
The Great American Boom in Busi-
ness Affairs.

The Great American Boom in Bust
ness Affairs.
Drovers Journal
We have now for the past two years
had a business boom in full play all
over the country, and all the leading
branches OF trade have felt it's influ-
ence to greater or less extent, and in
some branches prices have been run
wild without any regard to after nat
ural consequences. Especially has this
been the case in some Of the great
staple articles of agricultural produc-
ton which we have, during the last
few years, been exporting heavily to
foreign markets. We have had a
plethora of money in the country and
interest rates have been extremely low,
and this condition has led to the form
ing of syndicates, pools, rings, etc., for
the purpose of forcing prices of such
articles as wheat, corn, oats, cotton,
etc., up to exorbitant figures by pure
manipulation of the markets. We
have even seen it stated that in one
of the leading markets of the country
twenty or thirty times the wheat had
been sold that could by any possible
means be got in the market referred
to for closing the deals in a legitimate
way, and no doubt this kind of princi-
pie In trade has prevailed to a greater
or less extent in all the leading markets
of the country in wheat, corn, oats,
cotton, provisions, dairy products, etc.
Since the beginning of last fall it has
been seen plainly enough that the
European consumers of our bread
stuffs, provisions, cotton, etc., would
not consume our surplus as to the
articles named with any kind of free
dom: consequently, our exports of
wheat, corn, provisions, cotton, etc.,
during the past eight months have
fallen off very largely as compared
with the corresponding time the year
before. The following remarks which
we copy from the New York Produce
Exchange Bulletin are eminently sound
and to the point in this connection:
eve have no fault to find with spec
ulation legitimately conducted, as al
most all business is to certain extent
based upon the speculative element in
trade; but there is some danger that
the excessive speculation OF late years.
which has often forced prices up and
maintained them above the level of
European markets, will react upon this
country. 1t has already had the effect
of stimulating the production of wheat
in other countries-India, Chill, Austria
liza, etc.-and soon these countries will
more actively compete with the Unit
ed States than ever before for supply
ing wheat to Europe. Russia is an
other country whose competition in
the future will doubtless be very
strong, as the farmers of that country
are learning the Importance and value
of the most improved agricultural i'm
plements. Within the last few months
two large steamships have sailed from
New York for Odessa and Sebastopol
heavily loaded with American-made
agricultural implements of the most
improved order, such as threshers.
binders, reapers, etc. Such things as
these show that this country cannot
always maintain its present position
as the granary of the world, except by
active rivalry with nations that are
preparing to wage hard battle for the
position this country now occupies"
Exactly the same kind of competi-
ton in the production of cotton is now
developing rapidly in Egypt, India and
other tropical countries, and the pro-
duction of corn in Roumania and the
whole lower Danube country. with
considerable portions of Southern
Russia, will be greatly stimulated by
our extravagant prices. We are at all
times in favor of sound, healthy legiti-
mate prices for every agricultural ar
ticle that is produced in our country.
but exorbitant, inflated, unnatural pric-
es for such articles as we have been
speaking of will never fail to work
harm to the whole general interest of
the country in the end. For long time
to come we shall probably be able to pro-
duce in our country large surplus of
wheat, corn, pork, beef, cotton and
other acticles, which we shall want to
see good foreign demand for.