Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1884-05-06
Tha nenresslon In Trade.


and there Is no present sign Of the ces-
sation Of their dropping state. just now
there are some people who think that the
bottom has been reached, just as there
have been such opinions at every step OF
the down grade Of the past two years
With nearly every one the wish is father
to the thought, and as steady run Of loss
is not an agreeable experience, the sur
ferers are excusable for hoping for o
change in the tide upon very himsy
grounds. 1t is certain that the present
depression in trade is not going 10 con-
tinue for ever; but while the turn III
the lane Is bound to come some time,
there is no good reason to expect that II
will come very soon. These periods
OF trade depressions do not come
without cause or go without reason
and the occasion of the present situation
does not seem obscure, though many
people protest that 1t is to them alto
gether unaccountable. There are always
plenty Of people who are never able to
account for the fact that things turn out
as they did not expect deeming their
judgment tireproof, they conceive it mi.
raculously strange that it should have
been disappointed. The fact is, however,
that the Judgment of the great majority
Of people is not very good, while that Of
no man is perfect. The best opinions
may be set at naught by adverse facts ;
and it has come to be saying, much
respected for its truth by the wise
men who find themselves so often
disappointed, that nothing is so
sure to happen as the unexpected"
Certainly no one expected two years
ago that by this time there would be a
depression in stock values OF fifteen hun
dred or two thousand millions of dollars
nor would anyone have believed that
such depression could come without a
financial crisis and universal bankrupt
cy. But it has come, aud the paper value
has gone and no considerable number OF
financial shipwrecks have occurred. The
losses seem to have generally been suf
fered by those who are able to stand
them, though no doubt there are great
many financial edifices, Of beautiful out
side exterior, which are rs dry inside
as Dead Sea apple, and which will
tumble down before the rough
gales OF the coming seasons. But
unexpected as is the existing depres
sion in trade there is nothing strange in
it, since it is the natura. consequence OF
the undue stimulation that preceded it
,o ,rf l,xtt, tnr ct nj m U
since money is cheap. 1t is seeking in
vestment wherever it can safely place
itself to earn modest interest. A few
years ago it would have scornet
such investment. Then it hungered fO
great returns for usance rather than fol
the safety Of the principal, which wa
assumed TO be secured where so grea
profit was promised. Capital seems t
be always inclined to the two extremes
of undue caution and undue rash
ness. The happy medium is no
struck, because most capitalists have
their capital in their cash instead
of in their sense-in their pockets instead
of in their heads.
1t is to this fact that our present con
dition is due. 1t has been discerned b,
the Jay Goulds Of the stock market, whC
have watered the stocks of existing cor
poratiOns, and created others out o.
wind on the smallest foundation of solit
substance. Railroads have been pro
jected everywhere, and built where the.
were not needed and could not TO
years earn their fixed charges by .thei
legitimate business. They have bee
built and equipped entirely out Of none
borrowed on their bonds, which hav
been made to yield a handsome surplu
for the profit of the construction con
mittee, organized by its promoters, VIII
have besides received bonus of til
bonds and rich salaries as officers. Road
already built that have been proiitles
have been taken as potter's clay into til
hands of the spectators and combine,
and manufactured and dressed up so a
to invite the sale of their stock of fame
prices. Devices have been exhausted /
give fictitious values to worthless prop
critics and the New York stock exchang
has given its aid to the swindles
The result was great business /
construction of all kinds which stimu
lated production of all kinds, and espG
cially Of iron manufacture, and whe
the tail broke, business and mani
facturers Of every kind fell fiat o
its back along with stock speculation
The stock market ia said to be depender
on the iron DlaIket, and that the state
the latter is true index of the true col
dtion of the former. And 1t is trut
though il was the stock exaltatiOn an
depression which exalted and depresse
the iron market, instead of the inluenC
proceeding from the latter. The iro
industry is largely dependent upon tn
railroad industry. The production of iro
and steel has been enlarged to meet tn
great railroad demand which has existe
in periods Of railroad building actiyit,
The productive capacity of the countr
Is greater than the demand in periot
of inactivity in railroad constructiC
and maintenance, such as the presen
Every railroad In the land is economi
ing to its utmost stretch of possbi
ty, because its revenues are diminishir
and its dividend and interest amount
not Tn trutb tbara a IN h,t =, Jn,a, rai