New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-04-06
THE BUSINESS SITUATION.
SOME VIEWS EXPRESSED BY H. L.
.-t- HORTON.
CAUSES OF THE DEPRESSION AND FEW RENE
DIES sUGGEsTED-MoRE PRACTICAL MEN
NEEDED IN CONGRESS.

In reply to questions by Tribune reporter yes
terday. H. L. Horton. the well-known banker ex-
pressed the following opinions on the business situ-
alton and the which have produced the pres
ent condition of affairs
THE causes that have combined to produce the
present depression of business in this country can
only be arrived q. by retrospective view OF the
last fifty years during most OF which time this
country attracted the attention OF all the rest OF
the world. We sought capital in all directions and
formed copartnerships with anybody and every
body totally disregarding the natural laws OF trade
because had a market for everything we pro-
duced and consequently were Independent OF OUT
side influences
I'm carrying out the plans for the rapid develop
ment of our resources paid high rates OF inter-
est TO the capitalist and high wages to the laborer
and under this incentive money came 10 us IN
abundance and immigration was stimulated 10
phenomenal degree. Setbacks and reactions came
from time to time. from various causes, ana many
sacrifices made. but we continued TO gam
Roadway until railway mileage equalled that
Of all other countries combined and We found our
selves in the position where our capital and Iacii-
ties enabled us 10 produce more than we conid con-
sumo In this emergency We naturally had 10 seek
an outlet for surplus. and In the absence OF
satisfactory solution of the problem foreign capital
began to withdraw. and our partners mace us prop
ostons to buy them out.
Formerly our merchants bought the products OF
foreign countries China, Japan. etc. and were en-
abled to sell them here at large profits because the
facilities for international communication were so
limited that few informed TO the actual cost
OF production, but with the application OF electricity
competition developed rapidly and every intelligent
citizen became thoroughly posted in the markets
OF the world as in those at home.
'Only few years ago 1t required weeks to obtain
the information from abroad that regulated. to an
extent the prices Of our home products. chiehy
cereals and cotton. but now the transatlantic cables
annlhilate time and distance. 10 speak. and the
effect Of q change in conditions is instantly noted
on the floors Of exchanges; in fact business is
conducted between parties on opposite sides OF the
ocean with the same facility that enjoyed by in
divldual presence Under this order of things
the value OF capital has deprecated until a first
class security will produce not than per cent
per annum. where formerly per cent was the ordi-
nary rate. Competition has brought down the prices
Of all products and manufactures. both domestic
and foreign and only labor has thus far resisted the
general tendency successfully TO degree, but by
methods that are calculated to retard rather than
hasten the advent of a business revival.
CONTRIBUTED TO OUR SUCCESS
During the period Of our greatest prosperity the
whole world seemed to be contributing to our sue
cess. Other countries were being managed. appar-
entity with view to their destruction War was
widespread and the standard of monetary value was
almost lost sight Of through the necessity for an
abundant circulation. Take Russia. for example:
for years she tried to make money cheap by issuing
paper. and the result was that her rube depre-
ciated and the country became financially demon
allied She found that it impossible TO make
cheap currency perform the functions of sound
money. After time better counsels prevailed and
in 1887 she refunded her and per cent loans and
secured a vast amount Of capital at per cent some
100000 900. She committed her cheap currency TO
the flames and entered upon plans for the develop
ment of her natural resources Her people got en-
pioyment. and already she has made such progress
NJ xx,ith hav irnro trrv nd
OF climate she bids fair exceed in prosperity all
ether nations Railways are being built 10 reach
her extreme limits. and to-day one can ride $500
miles in first-class for sos. while second and
third class fares SIS 80 and 50 30 respectively.
Russia is already looked upon the coming coun-
try, because of her renewed vitality and geograph-
ica position and with these conditions We. more
than any other country. have to contend.
DEVELOPMENT OF THE WEST.
within a comparatively brief period. the great
country west OF the Mississippi was vast wilder
ness, where l myself have sold oats for 81 30
bushel, potatoes for "a a bushel and wheat for IS
to 81 a bushcl. The building OF railroads and in
creased immigration rapidly developed this great
field until 1t produces not only what It uses and
consumes. but enough for the outside world be-
sides. The railways have brought the great West
as near to the consumer as mid-England Is TO her
distributing point. which Is Liverpool. and this de-
velopment has caused reduction in the value OF
one-ffth the price It commanded thirty years ago.
This condition exists, Also 10 degree in this
country. In the Middle States lands that were
worth forty years ago 500 an acre may be bought
to-day for $50 and SIS Only few years ago the
factories Of New-Engand had a ready market for
everything they could supply. but to-day they
securing the earth TO find demand for their sur
plus. Thus II Is that this overproduction Is a
prominent cause OF present consested state Of
business. We find that, with population OF about
seventy millions. We have the facilities for pro-
ducing enough 20 supply two hundred millions.
We have the factories the best in the world we
have the skilled labor and We have the brightest OF
people, for the reason that the best blood OF the
world is mingled in the veins OF our citizens The
older nations have business methods peculiarly
their own while in this country We have the best
features Of all others in combination.
II have said that our progress toward develop
rncnt was interrupted from time TO time by re-
actions and that sacrifices had been made. The
great Rebellion the outgrowth OF sectional df-
fercnces. The North opposed the extension OF
slavery while the South would not restrict the
growth of their institution Arbitration was un-
syail.ng and resort to arms resulted In the
most terrible war the world has ever known. Both
sides fought for what they considered their rights
and tho struggle was long protracted, while the
whole world looked In astonshment. and for
time was undecided in opinion. With the suppress
sion OF the Rebellion the error OF the South was
generally conceded. and by none moro unreserVeo'y
than the South itself.
1.-The close Of the war eft the Nation in debt to
the amount OF s3.5oo.oOoooo. Every State county
municipality and individual was In debt, while the
o-,,.h az a section, was bankrupt. The outside
World quick to appreciate the character OF peo-
MA who. knowing their rights. dared maintain them
- any cost of blood and treasure. Immediately be-
ran TO nock to our shores. and a fresh impetus
"a given to the progress OF development. which
-. ..necially beneficial to the South because.
under the old regime that section repealed rather
,S.n encouraged processes that were In vogue
shrouehout the North. With the reunion OF the
etstes. there was general recognition OF the capa-
s..rsr.nts Of late years have gone on more uni