Savannah morning news. [volume] (Savannah) 1868-1887, 1885-12-22
Tho Business Situation.

The Business Situation.
Trade depression is not confined to this
country. Ii extends 20 all commercial
co utries. 1t is telt by the wheat grower,
cotton planter and silver miner, as well
as by the merchant, manufacturer and
speeulater. Writers for trade journals,
statesmen. ana business men undertake
( TO give reasons or this condition of affairs,
but as their reasons are different it is by
/ ne means certain that any OF them are the
true ones.
There is no such surplus OF wheat or
cotton that either al these articles should be
selling for less than the cost OF producing
them. II is said that the wheat growers
and cotton planters are poorer now than
they have been for years. 1t is not DIM
cult TO understand why they are. Their
crops have not brought them enough
to enable them to live and pay the debts
they have contracted within the year.
A writer in the Financial Chronicle
says that the depressed condition of bust
ness everywhere ia due ito the universal
tear, to which trade Is in bondage, felt
with regard to the currency"
with respect to silver in this country has
a great deal to do with preventing the in
vest ment Of capital in new enterprises.
The feeling that their money may be re-
turned to them in deprecated silver cur
rency makes people hesitate about letting
it 90 out OF their possession for any con-
siderable length OF time.
But is the uncertainty with regard to
the place that silver is 20 occupy in the
currency of the future the whole cause Of
the present depression in trade? There
are very good reasons for thinking that
it isn't. In this country the coinage of
silver on an extensive scale was begun
soon after the passage of the silver coin
age act, in 1873, but it was not until 1888
81 that il was noticed that the business
and industries of the country were suffer
ing. II is true that in the first years of
the operation of the silver coinage act
the ultimate effects of excessive coinage
Of silver may not have been taken into
consideration, and hence silver was
without depressing effects upon business.
Indeed, it is not improbable that's
coinage helped to stimulate all kinds Of
production until the markets Of the world
were overlooked. When, however, the
value Of silver began to decline, and the
fact that a deprecated silver currency
threatened to drive gold out of circulation
became apparent, capital atonce became
timid.
The receipts OF the great trunk lines of
the country give pretty fair idea of the
extent TO which business has fallen off
within the last two or three years. In
1892 50 the gross earnings 0tthe four great
trunk lines Of the Countrywide Pennsyl-
yania, New York Central, Erie and Balti-
more and Ohio-were a little over $I25,-
100000. In 1874 20 they were only a little
over 500 100000. In two years the gross
annual receipts fell of little over S23,-
0U0,000. In that time the yearly expenses
were cut down $l0,000,GO0.
OF course the $4,000. 900 In expenses
was withdrawn from the working classes.
The dividends were also grestlyTeduced.
so that there has been great falling of
in the amount annually spent by those
whose incomes are to greater or less ex-
tent drawn from railroad investments.
II other railroad properties throughout
the country have suffered as greatly as
the four roads mentioned, it is readily
seen that shrinkage of the receipts of the
railroads of the country have of them
selves been sufficient TO cause depression
in business Of almost all kinds.
For several months the opinion has
been expressed that business was improv-
ing, and the trade journals have said
time and again that the evidences of i'm
provement were visible. There were,
doubtless. grounds for these opinions and
statements, but there is evidently a very
strong belief that there will be no great
change for the better until Congress set
ties the silver question.