The Argus. (Rock Island, Ill.) 1885-1886, 1886-09-14
The Return of Prosperity

On every hand are signs that the pres
ent fall will witness magnificent revival
of business through the entire extent of
the United States The indications that
such is to be the case are numerous.
One of the most important is the condi-
ditOn of the money market. Fer several
years money has been literally and with>
out exaggeration drug. The interest on
railroad bonds which formerly bore SIX
aud seven per cent interest has been
steadily reduced until it has reached IL
four per cent basis. In the open markets
call loans went begging at from one To
two per cent. This showed the stagna>
ton of business more fnrcibly than any
thing else. There can be no real pros
perity where there is no demand for cap>
ital. Ii the country was prosperous idle
funds would unquestionsbly have sought
investment IL business enterprises which
would yield a renumerative return in
stead of being loaned out for mere pit
lance. Cheap money means staenation.
There has been marked change in
the situation in this respect, however,
within less than Il month About three
weeks ago it was discovered that the de-
mand for money had so much improved
that the surplus reserve OF the New
York banks had been reduced to about
seven million dollars compared with be-
tween fifty and sixty millions year ago.
As consequence of this stringency rates
We're sharply marked up and now six per
cent, for calls loans is easily secured,
while the market for time loans is cor
respondingly strong. There c!n be no
question that the funds thus Withdrawn
from the great money centers are being
employed in legitimate business enters
prises The demand for money tells the
story of the return of confidence ana the
activity of business.
The iron interest is one OF the greats
est industries of this cou ntry. 1t has
been in a deep state of depression for
several years, hut has undergone a
wonderful revival of late and there has
been a ID arked advance in prices.
The cotton mills of New England have
the same storJ to tell as the IRON indus
try.-
But perhaps the best barometer OF the
condition of business is furnished by the
railroads. Any improvement in business
is absolutely certain to be reflected IN the
earnings of these great steel highways.
The earnings for July and August of all
the roads show very large gains over the
corresponding months last year. amount
ing, in some instances. to as much as
twenty per cent. This Improvement Is
not confined to any one section, bat in
cludes roads east and west, north and
south. In some instances the increase is
phenomenal, as for instance, the Pennsyl-
vania, which reports a gain of over $500
600 for August over the same month last
year. The Northwestern, the st. Paul
and the Burlington arc also doing an ex~
traordinary business
This revival of trade has long been
anxiouslY expected. The premonitory
symptoms first appeared last fall, but the
labor disturbance last spring inlerfered
to prevent its progress. Now, however,
there is no obstacle in the way. and even
If there was, no ordinary obstacle could
hinder the progress of the vast volume of
business activity which is the more
mighty. now that it is at hand, on ac.
count of being so long postponed