Year: 1877




The opinion seems to be gaining
ground that the business of the country
has reached "hsrd pan" and that we are
gradually growing into a healthier con-
dItion of trade. The statistics OF the year
will show fair average business done,
and the abundant crops insure greater
activity in the money market this fall.
We cannot hope TO see our industries
stimulated to such degree rs they were
before the war. Apart from the shatter-
ing of confidence by the financial panic
of 1873 and the long list of mercantile
failures that followed it, the war and the
initiation OF the currency hsd stimulated
over-production to such an extent that
when the crash came and incomes were
reduced and mi lis and factories stopped
and so much labor thrown out OF en-
ployment thereby, the ability to buy at
ruling prices was greatly weakened, in
ssmuch as not only workingmen but all
classes of people were compelled 10 re-
duce their expenses. Every branch OF
trade suffered IN consequence, until the
price of all kinds of commodities tell
gradually to point within the means OF
the generality of consumers. Of late, by
reason of the economy thus practiced,
trade has shown signs OF revival, and
quite q number of mills and factories that
were idle, or whose operatives were put
on short time, have resumed work.
But the business done now is on
smaller profits and It's volume
very scnsibly diminished from
what 1t once was. Perhaps, of all in
dustries, that of producing iron from the
ore aud of its manufacture into nails and
bars and plates is suffering more than
any other, tor the reason that extension
of old and the construction OF new rail.
road lines has almost entirely ceased, and
with this cessation the neces ,ity tor sd.
ditIonsl equlment. How enormously the
building OF railroads added TO the indus
trial activity and indirectly to the gen.
oral trade OF the country during the
wears that followed the close of the war,
can De understood when it is remembered
that there was expended on the North
ern Pacific alone thirty millions OF
dollars. The losses sustained by
Investors in that and other roads under
construction at the same time, aid the
throwing out of employment OF 80 many
thousands of workingmen with no o.her
industrial field open to them, checked
the circulation of currency, loaded the
banks with money they could not use,
and indisposed capitalists to embark IN
new enterprises. The result was that, rs
statistics show, the failures in the New
England and Middle States during the
past four years amounted in the sggre-
gate to over five hundred millions
OF dollars. and in the Western States
t. one hundred ard twenty-six millions
of dollars. At the same time the people
have been taxed to pay the annual In
terest on the accumulated debt Of the
Federal, State, county and municipal
governments amounting in the aggre-
gate to over seven hundred millions of
dollars. All these causes combined have
lessened the ability of the country to buy.
That ability is the measure of the trade
we now have, and of what we are to have
hereafter. The best feature of our COM
mercial and financial condition is that it
has become healthy. What Is done is
done cautiously. Credit has almost
ceased to be employed in business, and
everything rests upon q solid foundation.