New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-19
THE PROSPECT or RECOTERT.

SncrlIlativc markets often do not represent III
NIL the actual condition of the country. Many
times within the last few months II mas D'eh
s,id that Wall Street was the bucst spot in the
country. So 1t has been in previous years wien
business was recovering from some SHOCK tie
speculative and the rccuperative forces are not
nj all the same, and the Street Is prone 10 con-
slider the speculative forces mainly. II happens
this year that great surplus stocks Of cotton ana
wheat affect almost irrcSstibly the most I'M
portant produce markets. rendering sustained
advance extremely difficult until those stocks
have been reduced. while the low earnings OF
RAILWAYS and the continued cmbarrassmcns OF
many which were Frustrated Ivy the panic affect
prices of securities. But it is not by any means
10 be assumed that the speculative market faith
fully reflects the general condition Of industries
or trade.
After the panic Of 1873 the tremendous de-
cline in prices continued until the year 1879 was
well under way-unill the complete and lasting
success of specie resumption WAS assured. This
WAS largely because prices had been expressed
in a huctuatiHG and deprecated currency. But
the real recovery Of industries began much
earlier The consumption of iron WAS Is per
cent larger in 1877 than in 1876. and more than
~ per ti'li lIlStI III 1910 N'uN'iiI''h W
cotton also began to increase in 1876, gaining
about l. per cent; the consumption of wool
rose steadily in the three years lSIGIS: the crop
of wheat rose II per cent from 1876 10 1873;
and in all departments of industry those were
years of sure and steady rccIIpcration. While
prices were diSmally low. there was no longer
th, fear ~ destructive downward fluctuations.
and The gradual resumption Of work by the
many who had been idle. although il was nj
lower wages than ihcy had previously received.
added each year largely To- their purchasing
power and thus To the demand for HE products
Of other industry. After tire" full years of such
slow rccupcrarion. when th" labor OF the colin-
try had Income fully employed and doubt about
Tin, stability Of the currency had been entirely
removed a tremendous upward movement came
Ia 1919 and 1851
Though under different conditions. the recoy-
cry from the panic II 1879 * not likely 10 be-
essentially different in character II must com"
slowly ai first. and with gradual resumption of
work POS thos, who have been Idle. bc.Hu~" I'M
m ,h" worllns force j. again employed there is
little possibility dat IN" demand for con'ump-
tiun can oycrtll" Or even closely approach The
nro.luc'iv.. power Revival II industry will also
llIlf' SONIC ItiNilitf To N'-'T 'illI>
,ln joe expected in large measure until The laws
r..1.hiius frc-u 'rllo have been changed.
Eut gradual gain may with reason be- expect
-l now thar Oh, fear u further destructive
legislation has brcu removed. aud the country
may look forward to restoration Of truly Nj
ri,nh policy \, the frishtm pro>iration Of
INgG9i ~. almost wholly caused 10y political
anil legislative. acts 80 recovery from il must
I.p.aI fro l'r- m.u~urr upou political and
legislative conditions and thc>" have already
ST., changed for th. better that gradual. though
rat 81, yci compl g.. Improvement ought TO hr
sc,u.
II would NOT hr surprising Z IA" speculative"
market, should Lax behind for while. nor
would II b. y bad thing for The country II. dur
ins The years II slow rccupcraiion. comparative
Is li'i" II It's working capital should h" ah-
,orhcd i'm carving great stocks and booming
prices ~ products or securities. Usually the
years II grclicst real gain in industries are
wear, of comparative inactivity In mcr" Speciila-
ton. II * after th" working force has again
obtained full employment. and recovered its
purchasing power 80 that the demand for con
sumption oycrtakcs productive capacity that
The upward rush comes in speculation. Perhaps
the more Wall Street lays to-day The sooner It
may seq that gcnuin" and complete revival
which lifts prices rrrSistby.