New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-05-08
THE STATE OF BUSINESS.


In these times of general complaint regard
ing depression in business complaints which
have only too much ground in some sections and
in some branches of trade and ndustry-it Is
gratifying to meet some evidence that the az
gregate volume Of legitimate business Is not as
much reduced as many suppose. Advance sheets
from "Duns Review" Of this date show results
of an investigation in fourteen cities east Of the
Rocky Mountains in regard to actual sales in
April. 1896 and 1892 In each city several lead
ing firms in each branch Of business gave either
their record of actual sales for the month or
percentages of increase or decrease Of their
sales and as all statements were in confidence
none to be separately published or disclosed, the
results obtained are of value. There are pub
liShed first returns by cities showing the increase
or decrease in all branches of business at each
city, and second by branches of business. show
ing the increase or decrease in each. taking the
reports from all cities together.
As these reports are entirely non partisan in
character and purpose. furnished by agents OF
all shades Of political opinion who are trained
to observe and report business facts without
color or bias. 1t Is most encouraging to find that
the aggregate Of sales in April appears to be not
quite 10 per cent less than in the same month
Of 1892. hitherto the year Of largest volume Of
business. and 81 per cent larger than in April
of last year To many people this statement
will appear almost incredible. yet the report Of
clearing house exchanges throughout the coun-
try to be published this day by "The Financial
Chronicle" shows that exchanges at all cities
outside Of NewYork were in the aggregate only
Ill per cent smaller than those reported by
the same authority for April. 1899. The large
decrease in speculative transactions at New
York. and in bank payments growing out Of
them, affects transactions through other clear
ing houses to some extent, so that the different
returns really indicate substantially the same
rate of decrease in other business
But it IA shown by "Dun's Review" that these
reports. being IN values are TO he considered In
the light Of the material decline in prices since
1892, which has been in products of iron SO per
cent since April of that year. in woollen goods
80 per cent, in wool - per cent and in cotton
goods II per cent. and this goes far to explain
the widely varying decrease in volume of sales
in different branches of trade. Thus in iron and
steel the April sales were SO per cent smaller
than in the same month of 1892, but in part be-
cause remarkably heavy transactions in previous
months this year had satisfied the demand for
some time and given the works enough to do
for months ahead. Hence. while the rail and
structural and sheet mills are well employed. the
new business in April is rather smaller than the
decline in prices only would warrant. But in
all branches together the transactions in April
surprisingly close TO those Of the best year
thus far when the difference in prices Is taken
into account.
It is this same depression of prices which most
affects the conditions of labor. For in many
departments contracts are now in force making
wages depend, month by month. upon the sell
ing prices OF products. Thus a strong protest
has just gone to Washington from one important
labor organization because the duty proposed
by the Senate committee would not tend to give
the producers any better prices for their prod
ucts. and hence would not tend to advance wages
Democratic tariff for deficit. 1t is largely be-
cause prices are about the lowest ever known
in this country, especially for manufactured
products. that the great army of workers finds
its earnings curtailed. and consequently its ex-
penditures are in like proportion curtailed and
the net result is decrease in the volume of bust
ness done. To the men who sell on close mar
gins this means loss Of profit and to the workers
who have always to compete with any who are
unemployed 1t means decrease of earnings The
loss Of tenth IS not relatively great in volume
of business, and yet It Is quite enough to prevent
the return Of general prosperity, which all de-
sire.