The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1883-12-28
THE BUSINESS SITUATION.


commercial failures in Montana In the past
six months have aggregated more than they
did In the preceding sixteen years. Among
the more recent of these are Wetzel d Co.,
Benton; Reed & Co., Barker; kirkpatrick
Bros, Dillon, and firm at Townsend, the
entire liabilities reaching over 100000. II
these end IL, IL is well but there Is an ap-
prehension among the best financiers Of the
Territory that the worst may yet be to come,
and they are handling paper and credits &C
cordingly. With all the heavy capital, de-
posts and reserves shown Ia the National
Bank reports in Montana, and the known
strong boxes of several private banks, 1t Is
notable fact that loans are being more
guardedly and reservedly made now, especi-
ally on the East Side, than at any previous
time In the history of the Territory. This
indicates what Is known as "tight money
times" Not but that the banks have plenty;
not but that 1t will be loaned when absolute
security can be given, but that 1t NAV be
withheld from commercial men who have
payments falling due in the East, who are
carrying immense credits on their books,
aud who will endeavor by an unusually Wig
they mature. This brings up for considers
ton the causes leading TO the present strin'
gency. Business In the Territory is under
going q double transition. Many Of the
smaller merchants who heretofore purchased
from Montana wholesale merchants, have, al
the instance of commercial travellers, trans
ferred their business TO New York, Chicago
St. Paul, St. Louis or San Francisco houses
They have been offered and bought goods on
close margins and at rates that encouraged
too large purchases. With the Montana
wholesalers, with whom they formerly dealt
there was much lenlency and considerable
sentiment In business relations. With the
foreign houses, from whom they now pur-
chase, 1t Is all cold. blooded business. awe
sell you goods on close margins and when
your payments are due you must pay
promptly" The banks In the meantime
have discovered the purchaser has transferred
his business beyond where they can ascer
tain the liabilities he is mourning and de
cline making loans greater than they can be
amply protected In. In the meantime the
merchant, In the usual Montana style, has
disposed of so much of his stock on credit TO
slow paying customers that he cannot get
the bank accommodations necessary to carry
him over, and down come the at.
tachments. To aggravate the situation, and
an important factor In the complication, the
farmers of Montana generally this season
have not realized well from their
crops. Many have sold at very low figures
TO meet the most urgent demands or are
holding their crops for better market, and
the storekeeper with limited capital, who Is
being crowded TO the wall by his Eastern
creditors, permits the neigEborly sentiment
alIsm toward his customers to deter him
from enforcing collections until 1t Is too late
and his business goes into the hands Of an
assignee or receiver 10 vanish like mist.
To 20 farther back into causes, 1t Is true
that the railroads have effected the farmers
injuriously. They bring farm products from
cheap producing regions, and supply our hes
markets at prices so low that our Montans
farmers, raising crops by irrigation, paying
good prices to farm hands and for imple-
nents, machinery and stores, and withal
having the Montans habit Of "living aud lie,
live" cannot successfully compete Will
them. The great freighting trains and stage
lines are gone, and with them constant, cash
paying, large consuming customers, while
the railroad train drops scarcely dollar in
It's swift career. Again, our farmers the pas,
year or two have almost universally been
purchasing lands at two prices from the
Government or the Northern Pacific Com.
pany, and Notwithstanding the exceptionally
good markets afforded during railroad can
struction, nearly all are yet involved, and
will stand off their storekeeper If they can
until they pay for and get title to theil
farms.
Although purchasers Of cheap produce
brought by rail to the towns from far of
communities may claim that they are emit
tied to the benefits Of cheap transportation
and object to "a high protection tariff" In
the way Of freight rates for the benefit Of
others, It would certainly be only fair for the
railroad companies to charge as high rate:
on farm products as on any other traffic Of
the same class over the same distance. This
would, we believe, be all the protection oul
farmers would need. As their circumstances
improve, the stress will come off the loca
business man, and as he learns wisdom by
sad experience of himself or others, he will
buy and sell more prudently. More than
this, we believe many will become discour
aged with their experience In the hands o
foreign jobbing or commission houses, ant
prefer to deal with Montana wholesale deal
ers There Is no doubt these latter have IL
many cases, by too heavy margins, helped
the drummer 10 get away their customers
It is we'll there should be great whoiessl
houses In Montana, and there Is ample legit-
innate margin for them in more advantsgeou
pu releases and shipping rates. As u Is now
our largest houses are doing retail bushes
with ample unemployed capital, while thos
who should be their customers are getting
their fingers burned by touching red-hol
Eastern business systems. We are going
through the transition from the old order Of
things TO the new, and 1t Is inevitable that
many who have not their business undel
control and try risky experiments will be In
jured. We trust that the failures that have
occurred will be the last, but the outlook Ii
not Is encouraging As we would like. The
adoption by the railroad companies Of a tariff
that would preserve the Montana markets to
Montana producers, would soon take the
stress of the situation, and the interpositior
of some of our large commercial! house.
might save good men from disaster, and
secure q more satisfactory system Of bust
ness than is developing In the Territory.
THE MONTANA GAME LAWS.