The morning call., 1895-03-03
ONE ESSENTIAL OF SUCCESS.

When the manufacturers convention
meets to consider ways and means of i'm
proving the industrial condition of Cali
fornia three questions of paramount i'm
portance will present themselves = our
natural advantages, the wages of labor
and the cost of capital. Regarding the
former, the main inquiry viii be not what
we have but how best to utilize them. We
have variety of soils and climates that
will produce anything we need in the agri-
cultural and pastoral line. Wool, the
great staple of textile manufacturing, has
always been one of our leading industries.
1t is held by experts that with proper en-
couragement we can readily produce GER
tain finer grades, like the Australian clip,
which are needed in the. manufacture OF
some goods. Cotton growing is expert
mental with US. Should it never prove
profitable the Nicaragua canal will give us
cheap and quick access to the New Orleans
market. We have timber in abundance
and variety, and can readily draw on our
tropical neighbors for what we may want
in fancy hard woods. We have mineral
wealth from gold to iron; water-power
and electricity offer compensating advan-
tages for any lack of cheap coal. In short,
we have only to work up the resources
which offer themselves.
Labor is somewhat higher here than in
the East Against that may be put the
fact that work can be carried on to better
advantage in our climate. The cost OF
labor depends less upon the nominal rate
of wages than upon the productiveness OF
labor, including all conditions.
The rate of interest is the third and one
of the most important considerations. In
this respect we have not yet quite emerged
from the pioneer era. City savings banks
may loan at 615 or per cent on first-rate
real estate security, but the man who
wants to start manufacturing enterprise
will very likely have to pay good deal
more than that to a money-lender. One
per cent a month is by no means one OF
the bygones in California, even on real
estate, in many sections of the State. This
is partly the result of business habit, partly
lack of accumulated wealth seeking in
vestment, and partly want of confidence in
the result of manufacturing enterprise.
This, however, is a difficulty that can be
remedied in measure by the action of
those interests that are now getting to-
gether in behalf of an industrial revival.
There is now idle capital in this city and
State awaiting employment. Only conf
dence is needed to bring it out. The COM
ing convention should include not only
manufacturers and representatives of the
working element, but bankers and capital
lists, large and small. AS the nimble dime
is better than the slow dollar, those who
hold the pursestrings should join with
those who want to employ capital in pro-
ductive industries in considering how the
interests OF both classes can be made to
agree. Cooperation must be the secret of
success. Once the movement is started it
will run itself. Every successful manufac-
turing venture will encourage another. Cap
ital is prompt to respond to opportunities
when it sees its way clearly. The beginning
of its profitable use in varied industries
will inspire confidence at home and abroad.
1t will invite the accession of capital from
those great centers where it is always in
excess. Even should the industrial move
ment at first tend to strengthen the rate of
interest by virtue of demand for money,
that fact will at once throw capital this
way with resulting cheapness.