Los Angeles daily herald., 1889-01-10


land the very instant that the grandson
of Tippecanoe should come out of the
contest q neck ahead. AS matter OF
fact, since the election, times have been
harder in the East than for years past.
Quite a number Of foundries and factories
have suspended work; and matters by
no means have the rosy hue that one
might have expected to see. were he
devout and staunch follower Of the grand
Old party.
This is the truth, and yet there
is nothing really diseouraging about
it. Since 1879 the United States has
enjoyed an era OF prosperity almost
without parallel in its annals. Until
the last fiscal year the balance of trade
was largely in our favor, in some years
running up into hundreds OF millions OF
dollars yearly. During the thirteen
years last past We have accumulated i'm
mense sums of specie. For portion of
last year the balance of trade was
against us, but to trivial amount.
During this long period of prosperity
we not only had the benefit of the balance
of trade in our favor in our intercourse
with the nations of the world, but we were
enabled to retain at home the immense
sums OF silver and gold yielded by
our mines. Between the two there must
now be several thousand millions OF
dollars of coin in the United States. The
official records make note of upwards OF
eight hundred millions, and the sums
boarded are twice and thrice those OF
which official cognizance can be taken.
The natural result has been extrava-
gance. The importations of foreign lux
uries has been unlimited. Hordes Of
Americans bave gone to Europe yearly,
spending money with lavish hand.
Enterprise has been unchecked; and,
especially in railway building, has per-
haps exceeded the legitimate demands
arising from development. The clear
ances show that the volume of business
last year was fully twenty-four per cent.
larger than in 1887. The inevitable re-
suit of all these causes is reaction.
1t is not in any sense violent one.
There has been no panic, nor
will there be one, but there is
general process going on which is the
equivalent of the taking stock of the mer-
chant. The country has been running at
a high pressure, and it is now simply
slowing down.
Just how long this process will last it
is hard to say, but it will not be long. All
the conditions of business are healthy.
Already there has been curtailment in
The buying of luxuries from abroad, and
the beneficial effects Of the retrench-
ment are shown in the fact that our ex-
changes with the outside world have
again turned in favor of the United States.
Although the returns for the last fiscal
year were against us as whole, the last
half of the year was in our favor by up.
wards of two million dollars. Our peo-
people are taking stock. but the
outcome will not be unpleasant.
A few hundred miles of railway
have been built where they an
ticipated the natural development of the
country, few capitalists will suffer, and
we have already probably sustained most
of the strain which is referable to this
state of things.
In Southern California also we are go.
ing through process Of liquidation, in
common with the people of the United
States at large. Nearly year ago the
paper town disappeared as factor in our
development. For almost a year those
who owed money on real estate have
been engaged in canceling their obliga-
tions. Our people are engaged
in producing wealth to de-
gree never heretofore chronicled in this
section. Los Angeles is already a great
railway center. tits destined to be much
greater one in the immediate future.
Our unapproached climate and
rich soil are still here, and
the people of the East are more fully
conversant than ever before with our
conditions of climatology and our other
Southern California attractions. The
liquidation both here and at the East is
already almost accomplished. When
fully completed, we can confidently re-
sumo march of prosperity and progress
without a precedent, and to which re-
markable railway development will con-
tribute.