Alpena weekly argus. [volume] (Alpena, Mich.) 1871-1893, 1883-07-18
The Business Situation.

Ine DuSlneSs SltuatlOh.
Ii is now about one year and half
since the financial sharps began to
predict the speedy advent of a panic.
New York bankers were first to give
voice to alarm, basing their forebod-
ings on the fact that our imports were
then becoming enormous, were great
ly exceeding our exports, thus caus-
ing a drain of gold from this country
to Europe. Then followed partial
failure of crops in 1881, a decline in
grain shipments to Britain, and fur
Their trade balance against us. The
partial crop failure reduced the re-
ceipts of the railroads for transporta-
ton, and caused railroad securities to
decline. A cry arose that railroad
building would fall off, and purchases
of iron for the future did diminish.
AS consequence, the value Of the
iron product has sunk fourth at least.
This bred fears that another financial
panic was at hand. The extremity
developed in the fall and winter of
1882. The general manufacturing
industries of the country were then
booming along under the momentum
given by years of prosperity. The
mercantile interests were borne on the
same high tide of success. The re-
suit was that when halt was called
in the two great interests, iron and
railroading, the many that are CO.
related to those two felt the shock.
1t was suddenly discovered that there
was an over production of commodi-
ties. Failures began to be frequent,
and are to this day. Ever since the
winter of 1882 the country has been
looking out for breakers ahead, yet
all the time fair average of prosper
ity has prevailed. 1t is true that val
ues of some of the leading articles OF
traffic have shrunk. This is what
has caused the failures that have been
so alarmingly rife. Owners who were
loaded up with stuff, the value Of
which was constantly shrinking, could
not realize the money invested, and
the effect was disastrous.
AT any former period in the history
of the country the entire manufactur
ing and commercial community would
have been involved in a collapse
But there were conditions extant il
this modern instance very differcn
from those that existed in 1873, 1851
and in panic periods before that time
Giving all due credit for the stabilit,
of our national finances, and our abil
ity to even up the balance of trade
against Europe by means of the big
grain crop of 1882, we must take thu
view that the main reason why TIT
country, in this latest trial, has beer
able to resist the tendency to PAM,
and financial collapse, is because o
the great wealth of the people now il
comparison with former times. Jus
as an individual, firm, or corpora
ton is able to stand up under finan
cial stress, when possessed of ampl,
capital, so can the community at large
the aggregate of individuals, firm
and corporations, endure strain o
hard times. To this main cause o
strength may be added the enlarge
ment of our area of settlement, indus
try and transportation facilities. rs
pecially is it to be noticed that manu-
features have become diffused owe
the West as well rs over the East
Particular lines of industry are no
confined to localities, and the equil
ibrium of trade and finances are thu
more easily preserved. For instance
in 1857 the prairie States over-produc
ed and their finances collapsed. The,
manufactured comparatively littl'
then, and depended mostly on thu
wheat crop. The collapse of western
finances then meant dull time.
throughout the East, which furnished
the West nearly all manufactured
goods. The general result was dul
times all over the country. But nov
II failure of crops or break down il
money matters in State, or groul
of States, does not necessarily NEAR
q stagnation in the country at large
The growth of population, the in
crease of rail transportation facilities
the building up of manufactures a
the West and South, as well as East
has very materially changed the con
dition and made panic harder thing
to prccipitate on the country.
Since we observe how the countr,
has resisted general panic thus far
the probable power to endure in tn,
near future becomes of deep Interest
to all who have money invested
What is the outlook for business
Will the conditions that have caused
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