Savannah morning news. [volume] (Savannah) 1868-1887, 1882-10-06
Some Business Clouds.
Bdltimore Sun.

NO mstter how favorable the aspect Of
affairs, there will always be heard the voice
OF the croaker muttering his lugubrious
prophecies. He is q useful member Of
society perhaps, Notwithstanding his IN
popularity. It may with Justice be claimed
for him that but for his warnings the opti-
mist would run away with the globe, and it
must be admitted that the safer plan is to
listen TO both sides. There are at present
some bad Omens worth attending to. The
Tightening OF money is q symptom which
may admit of various differences, but Il
will certainly justify an examination of
the present situation in comparison with
that Of 1873. II will be found that there Is
g certain amount Of correspondence The
cardinal fact OF 1878, that the country had
not yet recovered from arrangements con-
sequent upon the war, is Of course wanting,
but in other respects a parallel may be
traced. In 1873 the building of railroads
far In advance OF the immediate needs Of
the country, and without q prospect of
profits, was thought by many observsnt
persons to have precipitated the financial
crisis of that year. There were 9,35S miles
OF railroad built 1884, which is about
1900 miles in excess OF 1871, the greatest
year for railroad building before the panic
of 1873 The capital consumed last year
In this way, together with outlay on old
lines, was about $3.50, 000,0 900, and for the
present year the construction account
Is expected to be fully as large. We are
building many Of these miles of railroad for
the future-sOme OF them for the remote
future. Dividends cannot reasonably be
expected on many lines within the United
States for number OF years, and from the
Thousands Of miles built or to be built In
Mexico With American capital, it is doubt
full, as was recently shown in the Sun,
whether there will be profits obtained with
in the present century. The capital with
which we have worked has been borrowed,
in a large measure, abroad. But this, &C
c0rdtng t0 the Pal Mall Gazette, cannot con-
tinue indefinitely.
Americans are IN debt abroad, and have
mortgaged all available means at home; yet
they expect to 90 on sinking capital In un-
profitable railroads next year and the next,
as they have done last year and this, without
inconvenience to their credit. We do not
think this possible, and the growing anxiety
manifested to place the bonds of new roads
In this market Is additional proof that it is
not possible. A statement has lately been
made to the effect that sales of securities
here have helped to turn the exchanges, but
that is not the truth. In order to hold the
unstable new securities at home the old
good securities are being pawned here IN
considerable amounts, and command is in
this way obtained of our money. But not
outstanding that, the situation is essential
ly the same. Some day the new securities
must be sold, or the Americans will find
themselves short Of the necessary capital
for their Ordinary everyday business quire-
ments; and II the sale cannot be effected
on paying terms a crisis will develop It
self"
Foreigners are notl SO much disposed as
formerly to put money in American rail-
roads. But II we cannot borrow in order to
90 on with our work. we must sell some
thing. What shall it be? Last year we
sold little corn or wheat abroad, despite the
scarcity there, on account OF our compare
lively small crops and the high prices OBJ
tanned for grain at home. Nevertheless our
imports increased, and the balance Of trade
got the wrong way. Early in October, 1881,
No. 2 wheat sold for 81 so per bushel; at
present It sells for about 81 05. Our har-
vests are better than last year, but the price
to be obtained for grain is evidently to be
less, since England and other European
countries have produced fair crops and
India and Egypt are reported to be
inereaning the competition to which Ameri-
can wheat Is to be subjected. Our Consul
at Gibraltar calls attention to the increased
importations from India. In December,
1881, corn sold for prompt delivery at 81
cents per bushel at present sales are made
for delivery in December at 81 cents. $50
that" says the Philadelphia Anaericdn,
"when the corn cropis all available, little
over sixty days hence, It is expected to be
worth just a little more than two-thirds
what 1t brought last year." For those who
think the facts cited worth attention the
following further quotation from the Gazette
will be interesting reading:
1.-THE States are so deeply in our debt that
it takes the profits Of a very large part of
their sales to us to enable them to pay their
way and live. And there is at present every
prospect that the coming winter will not be
a good one for the holders of United States
grain-not good, that is to say, in enabling
them to get high prices, They will have to
sell much ia order to pay their way; and,
compensated though the nation at large
may to some extent be by better prices for
cotton, this, coupled with the fact that
American indebtedness to us is in several
ways greater now than It was year ago,
may well make the coming winter a ticklish
timen