The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-09-04
THE BUSINESS SITUATION.


country at large, and which has not yet been
wholly dissipated, seems to be without rea-
sonable foundation. There were undoubted
reasons preceding the financial panic of 1873
and the long depression that ensued. Dur
! ing the five years that preceded and included
! 1873, the United States imported goods to the
value of $2,61O, 16l, 731. During the same
period we exported goods to the value of but
/ 50, 331 COG, SCI, having balance of $278, 552,
10 against us. In other words we over
traded ourselves to that amount and had
| that much charged against us. The contrast
between the situation in 1873 and the pres
! ent time is remarkable. During the five years
ending with Dec. 81 last, the United States
imported to the value of So, 107 ass, 405, or
| $497, 293, GA more than we did in the five
years ending with 1S73 but during the last
| past five years we exported merchandise to
the value of So 1858, 712, 752, an excess of
exports over imports of 1886, 257, 347. In
| our dealings with others we received that
amount over what we paid out In 1878 we
were $279, $50, 40 in debt to foreign countries
in current business. At the present time we
| are creditors to the amount of $S56,257, 341,
difference in favor of 1888 of 81, 134, 800 SIT,
an amount comparatively little short OF
the entire interest bearing public debt. The
showing for the current year will hardly be
as favorable as those for the other years
taken into account. There need be no alarm,
therefore, from any reason arising from
overtradng our foreign account. The fire.
quent failures that have been announced
during the past month arose largely, it may
be said wholly, from local causes bad man
agement or through dishonest men. This is
true of banks as we'll as of business ventures
generally.
A comparison of the imports and exports
of the years 1881 and 1882 may be instruct
i've in this connection. In round numbers,
the imports of the latter year exceeded those
of the former by $14, 0O0, O00,while the exports
of 1882 were $21, 800 900 less than those of1SS1,
an unfavorable difference of $50, 500, 0OO The
cause of this difference was largely owing to
the falling off of our exports of breadstuffs
animals and raw cotton. In 1881 there were
exported breadstuffs to the value of $780,
$40, 500, decrease of over fifty per cent. Of
live animals we shipped, in 1881. SIG, 432, 1872
worth; in 1882 the total value of such ex-
ports was but So 729, 116, a decrease of over
III, rf1o tI,n
value of cotton exported in the two years
was, 1881, $247, 695, 746; 1882, $3.50 812 GA, a
decrease of nearly twenty per cent The to-
tai decrease in value of these three items
was $242, 248,475. Our exports of
manufactured articles on the contrary,
showed an increase in value, but not to be
compared in volume to the decrease noted
above. In the three items of agricultural i'm
plements, railway cars, and manufactures of
iron and steel, our exports, in 1882, exceeded
in round numbers those of 1881 by So. O0O,-
900. While this showing is insignificant
in itself, the total value Of exports of these
three items being but little more than
$4,000, 900 in 1882, there is enough in it to
call attention to the very significant fact that
we are able to export manufactured articles
in certain lines in excess of home consump-
ton. But for this we should have found a
very great deficit in our exchanges with for
egn countries at the end of last year. The
establishment of American manufactures
keeps us from being compelled to buy
abroad. A shortage in crops does not neces-
sarly mean that we shall go in debt to some
body east of the Atlantic. We do not ex
port in value as much manufactured mer
chandise as we do of cereals, but, what is
the same thing, we keep as many millions
| from being sent abroad for what we now
manufacture at home. The hundreds of
tries of the United States is that much saved
to US III the general account.
The situation, taken all in ALL is by no
means unfavorable to continued prosperity.
| The basis for a financial depression and panic
is not yet laid. There have been failures,
and there will be failures. Bad manage
ment, unwarranted speculation and dishon-
esty will continue to break down business
and financial houses. But so long as we do
not overtrade ourselves abroad, and stand by
and encourage home industries, there is little
reason to anticipate W despread monetary
trouble. If we are our own creditors, we
will not be bankrupted. Those who are reck-
less will lose while the prudent will gain The
money will simply go out of one pocket into
the other But we have comparatively lit
tie wildcat speculation of any kind now,