The Washington times., 1901-09-13
VIII Prosperity Continue.

Almost unconsciously many people
have of late found themselves wonder
ing with some little anxiety how long
the present good times will continue
This is a subject upon which all may
speculate at will, but concerning which
none may assume to speak with au-
thority, for no human being can say
with certainty what the future will
bring in a business way. Those who
have ventured opinions respecting the
matter may. with a few exceptions. be
grouped together in two classes: First,
the partisan politicians. like Mr.. Han
ma, who profess to believe that prosper
ity is altogether dependent upon the
policy of the Republican party, and
that the present favorable conditions
will last as long as that party remains
in power; second, those who look at the
situation from an economic but rather
pessimistic point of view, and who fear
a speedy collapse through the operation
of abnormal economic forces that have
recently been brought into play.
The first of these classes might be
dismissed almost without consideration
there are so many persons who credu-
lously accept as authoritative almost
any statement that emanates from such
a man as NJ. A Hanna. 1t would seem,
though, to be useless to argue the prop
osition with anyone of sufficient intelIi-
gence to give his opinion the smallest
value. Mr.. Hanna himself does not be-
Eeve the statement he makes with so
much assurance While he is politi-
clan, he is also business man, and he
knows Cor ought to) that no political
party can guarantee permanent eros
perity.
Mr.. Hanna is a very firm believer in
the trusts, which are, mainly, the out
growth of Republican policy. At the
same time ne must know that there
are. many elements of the first impor-
tance TO business that neither the
trusts nor political parties can control.
Commerce. for example, is information
al in character and it depends upon
the conditions which exist in the va
rious countries that are commercially
connected. If the conditions abroad
should so far change as to reduce our
exports. say two, three. or four hun
dred million dollars, 1t is perfectly plain
that it would have a most important
bearing upon the American money
market, regardless of what the trusts
might do or attempt TO do. In fact,
the state of the money market will
affect the trusts themselves, and it may
be such as seriously to cripple some
of them in their operations
1t must be remembered that panics
are always induced by monetary con-
ditions- There is never a panic as long
as credit is maintained, and people can
get money to meet the demands against
them; but when there has been over
extension OF credit, and those heavily
indebted suddenly find themselves un-
able either TO postpone the day of pay
ment or get money. they fail. Whether
a general crash comes depends entirely
upon how many persons or firms are
thus situated. But even without an
acute panic there may be a season of
business stagnation and hard times
1t is claimed that the trusts can con-
troi the industrial situation by prevent
Ing over production. Production, how
ever. is only one side of the Industrial
situation. Consumption, which creates
the demand, is the other. Ability to
limit the supply Of a given article will
enable trust TO protect itself in a
measure, but II is hard to see how the
exercise OF the power can add to the
general prosperity. The effect is to
throw many people out of employment
and reduce the purchasing power OF the
community. Spreading from the wage
workers 10 the merchants. and from
the merchants to the manufacturers.