The San Francisco call., 1897-07-05
WE ARE GETTING THERE.

The improvement noted for the past
few weeks continues. True, business is
not brisk, but there is fair movement of
merchandise, nevertheless. But better
still, confidence is surely returning. One
hears less about hard times and more
about the possi bi:ties of the future.
There is better feeling in the air.
Good times are nothing more nor less
than confidence. Trade is built up on
confidence. Buoyancy in business is
simply confidence. Activity in specuia-
tion is simply confidence. During all the
nard times of the past four years there
has never beer any real dearth of money.
There was relatively as much money on
hand when the banks were breaking all
over the country in 1898 as there is to-day.
But confidence had disappeared AID the
money had been Withdrawn from oircula-
tion. That was all. Hence the scarcity
OF money was apparent, not real. Nay,
more: there is never any actual scarcity
OF money. The miDts keep on coming it
right along, whether the times are easy or
hard. What is called scarcity of money
is its withdrawal from circulation.
For four years, thanks to the low tariff
OF the Democratic party, we have been
undergoing this apparent scarcity of
money. In other words, there has been
no confidence, no speculation, no desire to
invest funds, no activity in trade. But
with the return of the Republican party
to power and the accompany ing tariff for
which the country has been languish I'M
for several years. confidence is rapidly re-.
turning, money is again flowing outward
instead of inward. and business Is once
more on the up grade.
There IS no denying this fact. Business
men perceive it clearly. Many lines re-
port constantly increasing orders for
goods All over the country merchants.
who for several years lave been purchas-
ing from hand to mouth and running
along on limited stocks, are showing dis
position to carry larger lines and more
varied assortments. This is most grati-
| flying indication of returning prosperity.
for It itindicates larger buying capacity on
the part OF the public.
An amusing and at the same time in
structing feature OF the present recovery
is the stubborn refusal of prices to keep
down. All the persistent hammering of
the bears cannot beat wheat down belo "
its present level. If they do succeed in
beating it down for moment it immedia.
ately rises again, like a cork under water.
| This is new experien ce for wheat. Dur
ing the past few years it has been the
other way-tha bulls could not keep it up.
But now the tables are turned It is the
same with other lines, such as proyi-
sions fruits, wool and pork. They will
not stay down, and are slowly but steadily
advancing.
The present recovery in trade, like all
other previous Ievivals, is gradual. No
particular line leads the upward march.
The renewed activity is leaven which
permeates the whole commercial system.
There will probably be no boom, nor is
any wanted 1t is better as il is. We are
returning to prosperity with that calmness
which is born of permanence. And if the
new tariff is given chance to work ont
its logical results there is no reason whv
the United States should not continue in
fine com mercial condition for many wears.
The latest commercial reports from the
East show an encouraging demand for
all textile goods, increased railroad earn
ings, and better still remark able demand
for com mercial loans. A significant fact
in this connection is that though it is the
midsummer season, when business is al
most always dull, there Is no step back
ward in the improve ment.