Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1902-03-16
EUROPEAN DEPRESSION


Recent news from the Mainland re.
ports that wave Of depression has
struck the whole continent of Europe.
This does not come as a surprise, for
the business atmosphere of Europe
has been lowering for more than a
year past. Germany has experienced
several nasty financial failures as well
as stringency in her money market.
Her factories have felt the pressure
IF American competition more than
those of any other nation on the con.
tinent Russia has been in the money
market more than once since the out.
break of the massacre in China Spain
is always a borrower, and probably
| France can be pointed to as the most
solvent of European nations at the
moment.
That the remarkable era of Ameri.
can prosperity has more or less to do
with Europe's depression cannot he
|
worlds markets, even those of Eu
rope itself to n degree never anticipat.
ed few years ago. The world is not
buying largely in excess of its former
requirements, and where American
goods are sold they to a large extent
supplant the output of European man
ufacturers. The talk of the develop
ment of new markets is good for after.
dinner orators, but the new markets
are not developing as quickly as the
factories can turn out the goods. And
where are the new markets? The only
one we hear Of is China, a country un.
settled and on the border of further
revolution, the millions of inhabitants
OF which will not be reached CONNER.
cially for another decade at least.
A panic, or crisis, may be defined as
a stoppage in the rise OF prices, that
is TO say, the period when new buyers
are not to be found. Economic think.
ers and business men OF experience
know If that period has not yet arriv.
ed, IL is very close at hand and that "A
reactionary movement in values is not
far distant after the unprecedented
momentum of the past five years.
Overtrading brings about a CONNER.
cial crisis or panic and causes bust.
. ness to need more capital than is
: available, thus producing general
: lack of credit. With continued over.
production In the worlds industries, II
is only a question of time when some
: must succumb. II. for instance, Ger.
+ many cannot produce as cheaply as
t the United States and the supply is
= greater than the demand, then the
D German factories must close or be
run at loss. II closed, wages are cut
n of entirely Germany's purchasing
J. power Is thereby diminished. If wages
J, are reduced the demand is to that ex.
a tent curtailed.
Where the United States would he
directly concerned is in the sale OF its
goods to German buyers. With less.
ened demand they will need less and
; our output must be restricted unless
+ we can find more "wide.open" mar.
D kets. With checking of the home
3 output our employees will be affected
= as well as the employers, and that
u endless chain OF lessenlng demand
u and supply will be experienced to the
I extent that the purchasing power OF
r our foreign customers has been affect
O ed.
y America hopes for continued bust
J. ness prosperity throughout the world
At the same time II Is well to bear in
e mind that the history Of the worlds
g panics, during the last century, shows
d that periods of prosperity have never
p existed at one time for more than Ave
n to seven years. Following this, in the
past, has invariably come-depression
l. ----------------
r. Women are peculiar, Just as soor
r as they get something, they don't wan
It II. A couple of years ago younl
y woman in London insisted upon mar
S rying the son OF Lobengula who wal