The Providence news. (Providence [R.I.]) 1891-1906, 1897-10-11
'79 AND '97.


Many persons have noticed resem-
blance between ths conditions which nave
recently governed the Industrial ana
financial situation of this country and
those which characterized the year 1873.
The resemblance is no doubt. very
marked. and that being the case. III
would be we'll to ask what the experience
OF 1897 mas to teach us regarding the prob
able course of events during the next
lew months. that being as long period
as can be wisely included within any
ono's puryiew.
The year 1879 will always stand out In
a strong light in the annals OF this coun.
try. it was the year when we resumed
SPECIFIC payments and when debt refunu-
ing schemes OF an extraordinary nature
were successfully financed. The situation
was strikiDgly like that OF this year IN
that happy connection Of circumstances
occurred at each period TO promote pros.
perity. In 1879 There was tho TACT OF
several years Of abundant harvests. or the
successful accomplishment Of specie pay
ments and the restoration OF tho puollc
credit, and OF low stocks OF goods IN
consumers hands. The present year has
been characterized by AN enormous us-
mand for our breadstuffs at greatly on
hanced prices; the public credit which
had been languisning for numher OF
years was rehabilitated by the defeat OF
bryan last year; and Furthermore. the
year 1897 has found tie smallest stocks
in the hands of consumers for great
many years. Conditions being closely
identical in the two periods under ais
cussion II as not surprising that similar
outcome should b. reached.
The yOar 1873 was. In some respects,
not unlike 1896. and especially in one par
tlcular. AT that time Congress agitated
tho repeal of tho specie resumption act.
and began TO talk about unlimited coin
age OF silver and the stopping of the re-
tiremont of the green backs. accomplish
ing. among othor things. tho passage OF
the Bland silver law. The resemblance
TO the condi tions OF 1890 need not be
pointed out Tho year 1873 was character
lied by heavy drop in commodity prices
and ly large expectations. Failures were
numerous but this fact can 30 accounted
for in po~ by the repeal Of the tankrupt
law September l, many persons seizing
the opportunity to straighten out affairs
before the measure was taken from the
statute hook. In word, in political
financial and industrial circles, conditions
were closely analogous to those OF 1876
During tho latter part of 1873 the
situation began TO improve tie premium
on gold disappearing Decemner IL. The
year 1879 opened with money easier than
usual at that period. Prior TO 1879 the
stock market had begun TO show signs OF
recovery from tho panic of 1873 The i'm
proyement on railroad securities had its
start in July, 1877, tho CHEST prices on
that movement being recorded in July.
1878. at which time the tendency changed
owing to indications of damage to the
wheat crop. The resu uption of specie
payments was the or q thing needed TO set
the ball rolling again. United States 4
ror cent bonds TO the amount or s5iO.-
OO1 600 were negotiated at homo and
abroad. For tho year ending June 30
If .NNxr Y.s.,sl sAt
exports over imports Of $40 900, 900 Gold
imports set in around August 1879 and
by the end of the year we had made net
gain in the metal of S7S. 600 900 The year
was marked by heavy decrease in busi-
ness failures, by "a great increase in bust
ness activity. and 10y "A handsome i'm
provemenb in railroad earnings.
The business boom began about the
middle OF the year, or rs soon as the crop
outlook became fairly clear. This was fol-
lowed Ivy Jump in tho stock market
quotations. There WAS rush for low
priced railroad securities, exceeding any
thing ever Before witnessed in this coun-
try. On Nov. 81 occurred sharp break.
and for the remainder Of the year the
market was largely devoid Of life. Dur
ing the latter part of 1879 brokers' paid
PER cent for money, with an additional
commission Of l-32 at 3-S per cent. The
year 1880 opened with prices for securi-
ties so high, rs TO preclude the hope of
an early resumption OF the movement
OF 1879. Commodities and stocks were
less buoyant for the next six months, and
in May thore was a notable depression.
IL was in this month that Reading sus-
pended. Them sensued a rally in merchan
disc and security prices, July being q
fairly active month.
This il as far as we need trace the
movement OF 1879. The point which it
might tp we'll tO ramon Dcr Is TINT froIu
November. 1879 to July, 1880. there was
"a pause in the forward movement and at
times decided rctr0Qression. Another
fact worthy OF note is. that so far we
have not experienced the tight money
market which characterized the boom Of
1879. United States Investor