The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-10-05
, PREVAILING PROSPERITY.
Pertinent Suggestions as How to Make
These Good Times Stay

engineering NeWbs me IeuueuCleb VI
the public In financial matters is always
ito go with the crowd" The compare
son of the business community to a
flock Of sheep is an old one. Every
man is strongly prone to do what he
sees his neighbor doing. This Is why
in times Of great prosperity men incur
obligations and enter upon speculations
with apparent recklessness, who in
times Of financial disaster would turn a
deaf ear even to meritorious PROPOSE
lions for investment.
We are now In such a season of bus
mess expansion as has not been seen in
long time. Speculation of all sorts
is rife Companies are being hoated
with millions Of dollars Of paper capital,
and with little save great expectations
to show for IT, Some Of these concerns
have bought up some Of the abandoned
and obsolete factories which failed to
survive the competition OF 1896 and 1897,
and parade list OF such properties as
evidence OF their solid foundation. Man
ufacturing concerns are expanding. Eli
terprises which only very short time
ago were at their wits end to obtain
orders enough to keep from shutting
down, are making large Investments TO
increase their capacity. All these
things tend to swell the volume of APP
parent demand and 10 force prices
higher and higher, until finally the bulb
BILE will burst. Banks and tinanclers
refuse further loans; purchasers cancel
orders: mills can ind no market for
their goods and are shut down: opera
tlycs are thrown out OF employment
and their purchases decrease. Thus
does our fair castle Of prosperity fall in
ruins
What can be done to postpone this
evil day and to diminish its shock and
intensity when 1t does come? The
almost self-evident answer is that any
thing at the present time which tends
to check the swelling tide OF demand,
the forcing upward OF prices, and the
Increasing tendency toward debt-incur-
ring and speculation on a gigantic scale
will operate to prolong prosperity Let
US illustrate by concrete example.
Here is let US say, city which pro-
poges to spend ten million dollars on
public improvements. These have
been n long time In contemplation; but
during the hard times the taxpayers
have been Inclined to oppose such large
expenditures. Now, under the general
stimulus o. prosperity, however, u Is
PROPOSED to undertake the work. The
money is raised ty the sale OF city
bonds, and this volume Of demand Is
added to that which is at the present
time operating to raise prices OF mate
rails and of labor to a stu higher point.
Next suppose that instead OF this
course the opposite one were taken, and
the work were postponed until a more
future day, when prices have fallen 10
more near normal level. The tax
payers would then get q much larger
return for their money expended. The
volume OF demand would come at a
time when It might be most welcome TO
I'LL the order sheets OF mills which were
nearing a shutdown and labor would
be employed which would otherwise be
idle.
Is It not fact that our seasons Of
financial prosperity and adversely are
really due to fluctuations in the tide Of
demand? Do We not need as much to
check It in times OF prosperity as to
stimulate 1t In times Of university? Must
we not, in fact, do the one In order to
do the other?
We wish to emphasize the fact, more
over, that the course which is thus In
dictated Is really sound financial poll
cy2 To 20 as Il crowd goes Is contrary
TO good business principles as II is to
the larger financial interests OF the ma
ton Whoever at the present time
crects building, equIps manuflcto-
ry. constructs system Of water works,
or does almost any piece Of work which
can be clsssed as a permanent invest
ment, will receive smaller return for
given expenditure than Mt any time
for many years. Now is the time when
all purchases and investments should
be restricted to the lowest possible
point Now is the worst possible time
10 engage In large investments and
speculatlons. notwithstanding the fact
that every one is doing It. 1t is the
best possible time to pay debts and not
to incur them.