Smyrna times., 1883-08-15

is exceptionally low. For some time
the Treasury has offered to redeem
any part of $32,000,000 of three and a
half per cents with accrued interest to
date of presentation, but there is so
little demand for money that only an
insignificant amount of the bonds has
been presented.
1.-THE circumstances are evidently
peculiar. While money is lending on
call at 2 per cent, and even at IL per
cent, yearly, and ninety-day loans on
the best collateral have been made at
4 per cent, commercial loans are scrutl-
nized with unusual distrust, and in
MANY cases refused where refusal
would have been thought impossible a
few weeks ago. The distrust of lend
ers has caused a great shrinkage in the
credit of many firms and corporations,
and inability to get usual or expected
accommodations pinches some severely.
With plenty of money available, the
commercial world is subjected to
pressure not unlike that of period OF
unusual stringency in the money
market, and each failure, as it becomes
known, increases the apprehension and
the consequent curtailment of loans.
"But the circumstances are essential
Iy different from those under which
previous commercial disasters have oc-
CURED. There has been no period of
reckless over-trading, and, except in
certain branches of trade, the volume
of commercial Indebtedness does not
seem to be large. 1t is much greater,
to be sure, than it was when "hard-
pan" was reached in 1878. The ex-
pansion of credits in 1879 and 1880 was
undoubtedly great, but business was
generally prosperous then, and it was
not until the disastrous fall of 1881, ,
with it's partial failure of crops, that
commercial disappointment could have
caused much accumulation of indebted
ness. Since that time the prevailing
disposition has been altogether unfav-
orable to an expansion of credits. In
fact, the apprehension of disaster has
checked operations for fully two years
so that, instead of dangerous expan.
sion, there has been almost constant
liquidation since the Summer of 1881
1'In few branches of business, how
ever, there has been wild and reckles:
speculation, and prolonged and stub
born effort to prevent the decline il
prices. The consequences to dealer
in lard, pig iron, whisky and leathe
have been disastrous. 1t is to be ex
pected that wherever similar cause
have been in operation, similar disast
ers may occur. The tendency of event
for more than year has been constant
ly and strongly against every effort t.
manipulate markets or to maintain al
tificial prices. The desperate specula
tions which have disturbed the mark
cts during this period have general
involved loss to the principal operator:
r and deprived the markets of health
and natural support. In some of thes
branches of business liquidation has nc
yet occurred, or has been partial an
a ineffective, and failures in such brancht
: of trade will cause no surprise. Blu
! beyond the influence of the speculatiy
fever, business seems to be in health
condition. The volume of indebted
: ness is not excessive; stocks have M
), been dangerously aecumulating; an
$ prices have been adjusting themselv,
|. for nearly two years to natural cond
It tions. Because commercial disast,
n has been generally apprehended it
n the less likely to come"