Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1883-04-21
MEMPHIS APPEAL
IHEHUsINEss OUTLOOK.

SATURDAY, APRIL q, 1883
THE BUSINESS OUTLOOK.
Our general trade is going along with
gratifying degree of regularity, but there are
intelligent observers Of the course Of events
who express anxiety. The weak point is the
number Of bankruptcies. The general reply
TO such as these is that the tariff agitation
. las had disturbing influence, but the causer
in operation that produces bankruptcy were
apparent before the sgitatien began, and
also some.of their effects upon business. The
effects of the enormous diversion OF capital
from current trade by the immense amount
Of railroad construction from 1880 to the end
of 1882 have had their influence, an influence
not yet fully peroeptible. New combina-
tions are forming every day by which the
new lines are beginning to affect the old
ones, in some cases 10 help, 10
others 10 injure. "Ulterly unexpected ALI
ances," says the New York Public, shave
been formed, so that long established
lines suddenly find their business threatened
or cut down in consequence Of the compile
tion Of new and distant lines in which it had
not been supposed they could ever have any
concern whatever important lines will be
subjected to more or lees change and to much
uncertainty as TO the future. At the close
1856, 1854 miles of railroad we're in oper-
alton, during the next three years 500 miles
were added. Sudden changes resulted which
threw many roads into bankruptcy. At the
close of 1859 As, S44 miles of railroad were
in operation, during the next three years 49,
300 miles were added; disastrous results
followed lesdizg to the great panic OF 1873.
At the eI0pe Uf 1879 ,4sI mIIes OF railway
were in operation; during the next three
years about 10000 miles were sd-
ded, and. this time, as before. the
30 to arouse the attention OF business men.
AID cause the prevalent indisposition 10 in
vest in stocks. Besides railroad possibilities
there is trouble in the iron districts; in some
lines there is more "planl" than can find en-
ploymeHt, and more stock than there is a
ready demand for. There is trouble in all
directions from labor strikes, which are not
always to obtain higher pay, but often in re-
fusal of lower wages. In many lines of
business prices have q downward tendency
very trying to the capital of manufacturers
and dealers with full stocks. New York has
Of late experienced business hesitation aud
dizziness, "a phenomenon" says the Public,
"Which it might be well for the active men
of this city to consider somewhat seriously. y
Other cities, generally, have not participated
in this dullness, apparently, but is it
not ominous TO find tho Public, 10
our file of which excellent authority we are
referring, saying three wesks ago: I'VE are
in receipt Of not q few letters affirming that
the clearings at Cincinnati and some other
cities are reported double" The Public
adds: 1--WE have in vain solicited ipforma-
ton as to the mode of making the returns"
Why are Misrepresentation and secrecy re-
sorted tor Is itthat the dullness and hesita-
tion existing at New York lie felt elsewhere
and concealed2 At the opening Of the year it
was confidently anticipated that the ample
crops Of the previous fall would bring free
supply of gold from Europe, but the gold re-
oeipts have been very moderate. February
Slh the Public said: "The volume of BUSH
ness has been considerably smaller than has
bsen expected, and much smaller than
it would have been had ordinary con-
idence prevailed" The peculiar condi-
tion in which many millions Of
gallons Of whisky is placed brings
embarrassment to large amount Of capital.
The decrease OF government bonds and the
approaching necessity Of providing substi-
tate for them for the nstional banks, is
already betraying its Influence. To crown
all cnmen the ever mischievous tariff. The
revision made by the last Congress satis6es
neither protectionist nor tariff Feformer.
The decrease OF revenue the people require
has not been secured, and political parties
are already considering how the tariff may
be made war cry, go that its disturbing
character will be as active as ever. The high
tariff has stimulated manufactures into ex-
islenee, at the same time shutting the foreign
market against them by its heavy taxation
on the materials of manufacture. Excess of
goods has led to sales on long time, prices
fell, payments could not be met, and bank
ruptcy followed. The number of failures In
the first three months of 1880 was 1882.
with liabilities amounting to S12,777,-
O74. In The first three months
of 1881 there were 1851 failures,
with liabilities stated at 24,447, 25O The
first three months of 1882 gave 2127 failures,
the liabilities aggregating $50, 1882 For
the fret three months of 1888 the failures
were 2SO6, with liabilities stated ct S37, $685.
207. Had We an outlet in foreign markets
for our supeTfuous stocks of merchandise,
our worst obttructons would coon bs re-
moved, but the situation does not admit of |
such an outlet. We are surrousded by the |
Chinese wall an unwi.ely constructed tariff |
has built up around US, and which we can |
neither batter down nor overlap. Hap. |
PLY, we have fair amount of trade going |
on, and possess public confidence; add to
these good harvest, and we can tide over
all troubles and keep down all threatening
influences. As good harvest is not certain, |
a reasonable degree of caution, and careful |
Of tbs course of events, cannot be
an unNise policy. keep sufficient capital
within coRtrol TO be prepared for contin
gencies," is always a good MAXIM