New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-30
WHERE BUSINESS GROWS.

It may H. good Mt this juncture to consider
what the 1,a of business really Is with ref
erence - the most prosperous Of past years.
Not n few when informe,! that the volume OF
business automatically recorded by payments
through the clearing houses shows an increase
over 1892 exceeding 30 per cent think that the
comparison makes no allowance for the gain
in population or for supposed advance in
prices, and that were proper allowances made
the increase in payments would appear small
While 1t is well not to exaggerate the expan-
sion of business 1t Is almost equally important
not to belittle 1t, but to realize Its actual extent
and understand. as far as possible, the nature
Of It, Allowance for increase in population Is,
Of course, necessary, and the official estimate
made the population 65,520,000 July l, 1892,
and 7614S,O00 July l, 1899, an increase of
1922 per cent. Were the condition Of the peo-
pie in no way improved, were their purchases
in value Just the same now as In 1892 per
capita, there should be paid In business settle
ments about SIG 90 for every 500 paid In
1892
The question Of values Is that which leads
most persons into error. SO much has been
said of the great advance in prices this year,
and instances of advance exceeding 100 per
cent have been so conspicuous. that 1t Is doubt
less the general impression that the range OF
prices is now much higher than 1t was seven
years ago But the contrary Is the fact The
ratio Of prices of several hundred commodities,
with allowance for the relative Importance OF
each, was $40 So on November I, 1892, and only
SO 40 on November !, 1890, decrease Of 1.S5
per cent. In a few lines prices are higher,
but in the greater number somewhat lower
than seven years ago, so that sos 10 would now
buy Of all commodities the same quantities that
500 would have bought in November, 1892.
1t follows that If the increased population had
made the same purchases per capita in guam
tty, all business continuing in the same pro-
portion to purchases for consumption, the vol
ume Of resulting payments would have been
only S114 OF this year against 500 In 1892, an
Increase far too small to account for the ex-
pansoh in payments actually recorded For
November it leaves unexplained an increase of
3345 per cent.
An obvious explanation Is that a much larger
share of the payments this year than in 1892
has been Of a kind not dependent upon the con-
ditOn or consumption Of the people. This IS
undoubtedly true. but it is well not to jump to
the conclusion, as some do, that the difference
Il
ported sales of stocks have been larger this
month thus far than In 1892 about 3.5OO. 900
shares, but the settlements through the Stock
Exchange Clearing House, which was new
seven years ago, have been over 900 900 shares
larger than they were In that year for the
same weeks. Sales of grain have been not a
third as large as in 1892, or about 80 900 900
bushels less for the same weeks Sales Of cot
cd
in two weeks. The difference arising from
! speculative transactions does not appear 10 OK
plain any part of the increase in payments. but
If there has been any excess this year IT is in
significant compared with the increase OF
S1,l00,000,000 in clearlngs at New-York alone.
1t does not appear that there has been such
an increase In purchases for individual con-
sumption as in exchanges. Sales Of boots and
shoes and OF textile goods show an increase
greater than the gain in population, perhaps
averaging over 20 per cent, but not so great as
appears In some other lines of business. The
greatest increase by far has been In branches
which provide not for individual consumption.
but for industrial and trade enlargement. The
! distinction is one Of the highest Importance. In
! the building Of ordinary stores and warehouses
and office structures I'm cities this year has
made great record, but still greater in the
erection Of new manufacturing establishments.
new elevators and wharves and docks improved
machinery for loading and delivery OF ore and
coal, grain and other products; new vessels for
the lakes, new steel cars, in which one COM
pany uses 1900 tons OF steel plate n day, and
new rails and locomotives for the unprecedent-
ed traffic OF railways The extension of trolley
lines in every direction has created an enormous
business by itself, and also the extension OF tele
phones By construction Of hundreds OF indie