The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1885-02-06
THE BUSINESS OUTLOOK.

The manner in which the two import
ant cases of business embarrassment oc-
| curing last week have been taken by
the country is significant and eRcour-
aging. When on the same day there
were announced the suspension of A
banking house in New York with liabi-
tiles of some $1,000 100, and the snspen-
sion of a Srm Of iron masters in Pitts
buTgh with liabilities OF even greater
| amount, IL would have been entirely
| natural had these events given rise to
serious alarm. 1t would not have been
surprising e, on the one hand, bank de.
posltors had reasoned that if house like
the Clscos had come 80 grief it would
Oe prudent to look after their money in
other hands. and, on the other hand. if
bauk officers had reasoned that the caus-
IS that had led TO the suspension of the
Olivers made il prudent to restrict their
accommodation TO business men eeprr-
ally. This is the reasoning on the oue
part and on the other which. when the
times are ripe Tor panic, brings Oh pan
ic.
Nothing of the kind has occurred in
this instance. The troubles both of he
New ] ork bankers and the Pittsburgb
iron men have been understood and re-
terre to their real causes. and there
has been no disposition to infer a GEN
eral want of safety in business circles
The difficulty has been accepted AS spn-
radio, and not epidemic. In both ca
ses it was due to faults and errors that
are peculiar to the concerns ard NOT In
any causes Of general application
There has hardly Geen a ripple of excite
ment in New Y ork over the suspension
OF the Ciscos. In the iron trade The re-
Vival that had already begun in mod
crate way, and which was going on
gradually but steadily, has not been i,r,,-
ken In upon, while the divers them
selves have made proposition to their
creditors which appears at once honor
ahe to the firm and encouraging 20 tbs
Creditors, and which will probably bs
accepted. These are facts which every
sensible and cleaT--headcd business man
can appreciate, aud they make the mis-
chleyous tattle of professional rumour
peddleTs OF once contemplate and nu-
profitable
1he facts, mOreGver are entirely i'm
harmoRy with what we believe, To be thu
true view of the situation of the coun-
cry, view which we have Repeatedly
urged, aCd sometimes. as in Nav last
when theIe were manvwh0't eii,-vsd that
we were en- the verge of annther fUa,,.
clal CONFUSION ike that OF 1873. That
view is That Iha county Is SUFFERING
from a reaction from too great and rap
Id extension Of invesImt nts in railway
DShdlug, culninating' in ISSl-2. The
radical cause Of trouble in this over ac-
tlviLg was the conversion of a very large
amount of available capital into fixed
capital paying ne profit. Ii was accom-.
panied Oy great deal Of feverish sDec-
ulatIon a watersd stocks and in sscuri-
ties having a very Insufficient basis of
either CAPITAL or earning capacity.
But this error ia Investment did not
90 Sc far as ~ the period preceding 1873. +
It was not accompanied by any such ex-
Jansion OF credit, and il was tree from
.he tbe trmeGdous and vicious stimulus
u deprecated currency Iad this not
jeen the case, there wuuid have been
cry much more seriUns cOnsequ. noes.
Lhs sInking OF capital undoubtedly en-
'aFIasSed the country, bat it did not
nipple i. The faiIaCe OF the enter.