Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-18
COUNsELs OF PRUDENCE.
I'm Good Times Prepare for Bad
Times.
From the Iron Age.

0OOu Prepare for BQd
Times.
From the Iron Age.
The better times now being enjoyed are
not permanent. They may continue two
years or four years more. but no GER
tainty exists that they will last six months.
Nobody knows what calamity may be in
store for us, whether we may not be
plunged into dire distress by the foolish
ness Of our national law makers or by the
uncomfortable operations of nature or by
serious breeches between labor and capital.
If nothing should happen to brighten cap
ital but investments were to proceed per-
manently hereafter solely on the merits of
each particular case, who could venture to
prophesy when times should perforce again
grow bad? The timidity of holders OF mon
ey. whether they are owners or bankers,
will, however, always affect business.
money is the life blood of trade, and some
thing is certain to happen sooner or later
to make them timid. 1t is well. therefore,
to heed one of the very bitter lessons learn
ed during adversely and to apply it faith
fully during the prevalence Of good times.
SO that the temperance Of business de-
preston may be robbed Of some of its ter
rors
The statement cannot be successfully con-
tradicted that prior to the late panic a
long period OF prosperity had caused an I'M
due expansion in almost every branch Of
business. Railroad companies built social
ed feeders" which proved only suck
ers" after being equipped and operated.
Coal and iron ore mines were opened at an
extravagant rate. as IL the country's ca
pacity for consumption had increased with
every fresh mine opened. Manufacturers
reinvested their profits in enlarging their
plants. removing to new locations in nu-
merouS instances so as to get more room
for not only immediate requirements. but
future development. Merchants built big
ger warehouses and extended their credits,
or invested their surplus i'm outside
schemes, which promised large returns.
The panic caught hosts Of these cases OF
expansion, so badly stretched that they
gave way under its stress. and wrecks
were strewed everywhere Many survivors
were badly wrenched by the strain, and
are even now only recovering. They may
very properly lay the blame of their bust
ness troubles to any one of a dozen causes,
but the great maj ority of them must admit
that they would have been much better
able to Withstand the shock of the panic
and the drain of the subsequent depression
il they had accumulated greater surplus
or increased their savings when business
was prosperous. They were vulnerable by
their own actions CT they would not have
been injured.
The principal lesson taught and which
should be steadily borne in mind through
a season of commercial excitement. is the
general unwisdom of expanding facilities
to correspond with a feverish condition OF
trade. To put ii in another FORM every
manufacturer and merchant should en-
deavor to strengthen his surplus during an
active period. thus putting himself in a
position to Withstand the trials of an in
evitable dull term. The expansion of man.
ufacturing enterprises. always undertaken
most heavily when trade is active. contrib
utes very considerably toward the further
stimulation of business and rise in prices,
thus causing to great extent false esti-
mate of the legitimate demand The
pansion should be left to those who have
tr.If
dence should govern the rank and file.
Better provision for the future can In most
cases be made by Conservatory improving
the plant. putting in more modern machin-
cry and keeping well possible up to
the progress of the age. than by building
a bigger factory or multiplying machines.
If completed in time. the bigger factory
may be fully employed for n season. but
the owner is likely to find himself sorely
troubled before many months have passed
trying to secure orders to keep IL in opera
chances he should be permitted to do 50.
That man will be wisest who proceeds most
cautiously and knows that he has ample
capital to meet the contingency OF dull
trade and little profit. He win not try to
{ utdo his rival. but will determine his pol
icy from the standpoint OF future safety.
All men cannot be leaders in their respec-
tive lines. Some will be much more sue
cessful than Others and can safely under
take greater cares and responsibilities and
carry them to q satisfactory conclusion. But
prudence and conservatism should govern
the mass OF business men. causing them in
&c cd times to amply fortffy themselves
against the certain coming OF adversely.
Pre4Dare n rainy day