The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1901-12-28
EUROPEAN DEPRESSION.

To any one who studies the signs of
the times, the European industrial de-
sulate we have i'm continental Europe
sends along the same story. Consul
Hossheld from Trieste reports:
"OMcia estimates based upon re-
ports received from all the sugar fac
tories in Austria Hungary place the
MUnarchy's production of sugar for
the current season at 1,224,S0O tons,
against 1,OS33 300 tons for that ended
June 1, 1901. The total sugar-bee
crop of Austria Hungary is estimated
at 900 quintals CS,500,000 metric
tons, against 100000 quintals i'm 1900.
Nearly half of this quantity-viz, 4,OOO,-
600 tOns-was produced in Bohemia.
The constant expansion of the sugar
industry in Europe and the gradual
loss of some of its important eastern
markets are almost certain to bring
about a serious crisis at a not very dis
tant period"
one should mark the note of warn
ing, "a serious crisis is not very far
distant" This is a serious commercial
condition. Yesterday The Star spoke
of conditions in Germany, also quoting
from consular reports. Yet another re-
port is published by the State Depart
ment under date of December A. There
/ is the same warning note with regard
to Austria Hungary. The report in
part says:
There is every indication that Aus
trla- Hungary is on the eve of great
industrial depression. The wave of in
activity which has been influencing
Germany for the past two years APP
pears to be moving eastward. Until
recently, iron, steel electricity, petro-
leum, and nearly all otner great in.
dustries seemed to be in a fourishing
condition, the only apparent exception
being the textile branch. Here, the
crisis came more than a year ago. a
short period of unusual prosperity had
caused a rapid increase in the number
of spindles and looms. This was fol-
lowed by overproduction, and in time
by stagnation. The crisis was doubt
less FASTENED by the extraordinary rise
and subsequent sudden fall in the price
of raw materials and a consequent de-
mOralizatiOn in the market.
In many of the iron and steel works
in northern Austria, work has been re-
duced, and some establishments have
even notified their men that if orders
are not soon received they will shut
down at the close of the year. 1t is
Furthermore stated that the Austrian
locomotive works have nov received a
foreign order for months, and that, in
as much as with their present force of
employees the entire homo demand for
1902 will be supplied within a few
months, the prospects for the ensuing
year are rather gloomy Car shops,
furniture and tool factories, sawmills,
and similar establishments are only
partially employed, and the building
trades complain of general inactivity"
This may be all far enough from us,
but commercial upheavals affect peo-
pie thousands of miles from where
they take place. That a terrible COM
mercial upheaval is imminent no one
who has made any study of broad sta
tistics and commercial polity can deny.
OF course what we want to consider |
here is not so much what is going to |
happen in Europe, as to how the con-
dition of Europe is going to affect us. |
A commercially pheaval is not going to |
leave any civilized country upon the |
face of the globe free from some scars. |
-hit'i al tli' IDADlC 5lNS9 10 lCooOllS III |
this direction as it does in many others. |
The seven years of plenty and the |
seven years of famine is but d typical |
story. 1t was a case of overproduc- |
ton followed by a case of very seri- |
GUS depression. In those times, how
ever, the area of effect was limited. At |
the present time the area of effect is Z
almost unlimited.
One does not like to take up the Cas-
sandra prophecy business, but it must
be clear to any historical student, that
a commercial smash in any part of the
world must be felt elsewhere, and even
our own phenomenal prosperity will
feel it, Wherefore it is wise to watch
the progress of events, if one is en-
gagged in great business enterprises,
for history shows us that the most
brilliant and successful of business
men have miscalculated. Out of all |
this, however, our own individual in
dustry may do remarkably well. AS
far as debt is concerned, many Of our
enterprises are on the high road to
freedom, and it will be the free that
succeed.