The Savannah morning news., 1902-08-27
THE LONDON TIMES PREDICTION.

THE LONDON TIMES PREDICTION.
We do not think the English peo-
pie pray that financial and industrial
disaster will overtake this country, but
we doubt if they would shed tears
if such should be the case. The sue
cess of our manufacturers in capturing
a large share of the worlds trade, OF
which Great Britain had almost a mo-
nopoly, and the gradual moving of the
financial center of the world from Lon
don to New York, have had a disturb
ing and disheartening effect upon
them. While their own industries have
been languishing those of the United
States have been growing and eY-
panding in the most wonderful way.
1t is not surprising therefore that
the London Times, in leading article
in its issue of Aug. 26, predicts troub-
lous times for the United States. 1t
says the credit of the United States
may continue as good as it at present
for two or three months longer-dur-
ing the time that a bountiful harvest
is being gathered and marketed-but
that a collapse of credit in New York
may be expected in the very near flu
ture unless we are to accept the
newfangled doctrine that in some mys-
ferrous way, economic laws need not
be taken into account where Ameri-
ca is concerned" 1t apparently feels
certain that the present condition of
things and the present fashion of
finance cannot continue forever.
One part of the article in the Times
is as follows: Mere magnitude Of
resources however dazzling to the un-
thinking, will not save their owner
from embarrassment, or worse, If he
allows his liabilities to grow in ex-
cess of them" 1t would be interesting
to know just what the Times means
by the foregoing. Does it mean that
our industries are being overcapital-
lied and that, if hard times should
come, is would not be possible to pay
the fixed charges of these overcapi-
talized properties? Is what it says
an attack upon the industrial trusts
which have been such potent factors
in enabling us to get big share of
the worlds trade?
1t may be that there is a little truth
in what the Times says If this is its
meaning. Still it will be recalled that
Mr.. Schwab, the president of the Bill
lion Dollar Steel Trust, in a statement
which he published a couple of weeks
ago, gave figures to show that that
trust was not overcaptalized. He de-
clared 1t to be his opinion that it's
plants and other properties would sell
in the open market for enough to pay
all of its liabilities.
However, there is no doubt that
many of the trusts are overcapital-
lied. And it must be admitted that
If there should come period of bust
ness depression they would have diff
Guilty in maintaining their credit
However, there are no indications of
such a disaster as the Times pre-
diets. On the contrary, the outlook
is for long and prosperous period.
When Mr.. Morgan reached New York
the other day from a long stay in
Europe, he said that he saw no weak
points in the industrial or financial
situation and he predicted a long
period of prosperity
Probably the purpose of the Times,
in drawing gloomy picture of the
near future in this country, was seek
ing to encourage it's own countrymen
on the theory that misery loves COM
pany If the English could be made
to believe that the American people
would soon be in the midst of an in
dustrial and financial disaster they
would struggle along with their own
financial and industrial troubles with
more cheerfulness.