The herald., 1897-09-16
OFFICE OF THE HERALD,
LOS ANGELES, Sept. =, 1851
Diversity of opinion proves that things
are only what we think them.


Diversity of opinion proves that things
are only what we think them
Real estate statistics and general infor-
nation will be found In another column of
this issue.
The business situation is ably summar-
ized by American Investments, which deals
with the subject in an article from which
the following excerpts arc taken:
No one can write a word on the situa-
ton of the business world without eX-
periencng strong feeling of hope. There
are more factors present today justifying
the ownership of such feeling than for
many years. No man with half an eye
who is familiar with the history OF the
country since the recent panic, ana up 10
the times in keeping in touch with current
events will undertake to dispute this.
There may be some who have become so
nd-shouldered with financial burdens
that they cannot hold up their heads long
enough to recognize this fact, but it is
there all the same.
Are there any dangers in sight that call
out a warning note? To be sure there
are One is that of assuming too much
and over-banking on the future, which
will Justify only so much and no more. But
then at the beginning of period of pros
perity there is less danger of this than
when we get further along, because of the
educated an trained disposition of capi-
tai in the direction of extreme caution
and conservatism Money is not very
frisky in general circulation at the pres
ent writing, owing to a desire to see just
how much solidity there is. Investment
funds during the past month have been
quite active, indicating a desire on the
part of investors to get in as near the
ground floor as possible before the rise
In values occurs and money becomes too
familiar with low interest rates.
There will be temporary reactions, there
always are; but in no case is there prob
ability that setback to panicky condi-
tions will occur. A we'll known writer has
divided business life as follows:
Prosperity, lasting from five to seven
years;
Panic, lasting from few months to few
years;
Liquidation, lasting a variable time.
He further adds that a resumption to
be lasting must be preceded by thorough
liquidation. No one will deny that we have
ha da pretty good dose of liquidation and
that it has been uncomfortably thorough.
What will now be of great moment to
investors and spectators 10 shall pur-
chases be made at the present time? Again
quoting celebrated author:
"Ruy during the last of selling move
ment and sell during the last of buying
movement.
Buy when the decline caused by panic
has produced such liquidation that loans
and discounts, after steady and long con-
tinued diminution, either become station
ary for period, or else increase progress
sively coincident with a steady increase
m available funds; and sell for converse
reasons"
If these theories are correct, buyers
should now make themselves known and
hold on until 1929, when they should be-
gin to sell, putting their funds in nom
huctuating, low interest rate securities,
waiting until the period of liquidation has
passed for another chance. A great many
of our largest estates have been Graded
together by following this process. Sim
pie and forcible as it is, there are few
that have the nerve to follow it strictly
The vast majority of business mankind
fails to step in soon enough or holds on
too long after they have stepped in. Buy
ers. however, need to practice fine dis
elimination In selecting their properties
that they buy those unfettered by possible
assessments or not based upon wrecked
concerns that cannot be resusctated even
under the most favorable circumstances.
1t is an easy matter for a novice to de-
eide. and If he finds himself depending
wholly upon guess work. he would better
call himself off, for there are certain as
certainable facts that can be made some
what OF guide. Let the buoyancy of the
times continue, but kill every boom as it
pops up its head.
The bureau of American Republics at
Washington has received information that
the government of the state of Para, Bra
sil is inviting tenders for the purchase of
the present water works of the city of
Para and for extending the system. Bids
will not be received after Nov. IS next.
Para is at the mouth of the Amazon, and
is the principal shipping point for the
India rubber of Brazil. Here Is chance
worth considering.
+ = +
It Is now twelve years since the system
Of school savings banks was introduced
into the schools of the United States. Mr..
]. Fl. Thirty, the founder of the system.
has just issued his annual report, which
shows a very gratifying condition of af-
fairs. At present the school savings bank
system is in practice in $50 school houses
in the country in 63 cities and villages
These schools are under 1872 teachers, and
are distributed In six states. The pupils,
OF whom S2790 are on register and rs, S35
depositors, have placed in their school
banks $451,2l.37: withdrawn 1922 945. .2S, and
LA remains due them The system
OF banking, 1t may be added, is very SIM
pie. The teachers give credit on weekly
card to depositors, and when the amount
OF deposit is large enough transfer it to the
local bank. The scheme is only better
way Of encouraging the habit of saving
on the part of the children than the banks
can offer.
g y + =