BoletiÌn mercantil de Puerto Rico. (San Juan, P.R.) 18??-1918, 1902-03-17


wealth in America We get very real and
vivid glimpse of what is essentially q nev
habit Of Thought. sIt's hard on Algy! His
father cut him of with only five millions".
Poor Richards almanac brought down to
date would read: ssTake care Of the millions,
and the billions will take care of themsel-
vss.n We have, in fact, insensibly adopted
q new mental arithmetic in all matters Of
large finance, private or public. We think
in nine figures. A hundred millions has
become q sort of uuir Of measurement. |
Anything below that is o negligible quauti- |
you're talking We take the highest esti- |
their largest capitals in banking or CONNER. |
co, their most extravagant governmental
expenditures--and sit down quickly to null
tiply them by 100. Instead of the almighty
dollar we have made it the almighty $1OO-
100000.
Already We have groWn 90 accustomed to
the easy tossing about Of huge cspitalisa
tions that the eye is not caught by . new
incorporation unless it glares with whole
row of naughts and dollar marks. Mere
millions no longer. attract notice-we hope
you don't think we are in the retail business!
The Steel Corporation, with its daring leap
above 100000, 900 capitalization, not only
frightened Europe, but permanently affect
ed the American imagination. We have
been transported into large and lavish
Asatic atmosphere. The wealth of Ormrs
and Of Ind are no longer too bright and
good for our financial nature; daily food.
We revel in the possibilities VI wealth be-
yond the dreams Of avarice, and have come
to make Col. Sellers, with his beggarly mil
lions. look like mere rurbstone opsr.
ator. This new temper makes rs credulOus,
it cannot be denied, and perhaps Just bit
Igullble. Promoters know thai they will
never seem 80 plausible as when they soar
above the hundred million mark. To talk
confidently about floating $150, 0,00O, 600 in
new securities seems of itself almost to make
the bonds gilt edged. Such great capital
must argue vast profits in sight That dis
patch the other day from North Dakota,
quietly recording the charterirg ola COM
pany with unknown directors and tor un-
named purposes, with capital stock to the
tuue of 5000, 600 600 one hsrdly knew sshe
.he- se taxa in jest mr. earnest. We have
been SO dazsled BY big figures that we are
sstonished at the moderation Of ineorpora-
tors who let little thing like 4l00, ,00O, 600
keep them ffou breaking the record.
One curious thing about this craze for
immense capitalization is that it is de-
Tended and urged in the name Of tseconomy.n
Thus Mr. Schwab, on his return from Monte
Carlo, grew almost dithyrambic in his
praise of great combinations, precisely for
the reason that they were so economical"
To . saving and thrifty New Highlander of
the old school, this would sound very like q
contradiction in terms. 1t would seem like
taking the most costly house in town 10
order to cut down your bills for fuel and
servants. "In order to practise the strictsst
econemy," Mr. Sckwab appears to say, s'let
us neglect every thing below 800, 600, ,O0O."
We are aware, of course, that be does not
mean this, and have no doubt that there is
q substantial argument for business con-
solicitations in the economies, both Of produc
tion and distribution, whick they may
effect. And we are also perfectly aware
OF the fact that it is only too possible for
such great combination as Mr. Schwab has
in mind to exhaust its economies many
times over in extravsgant salaries, swollen
fees, and especially in watered and wasted
capital. But that is not to the present
purpose. What We wish to ask 10, how
bueb0 TWO COuC0ptloub Va 0uVTmUun wealth.
and minute economy are going to be har.
monized in the general mind. How does
the thing work in private businessi How
does it affect the conduct Of public affairAf
Every one knews what the instructive |
feeling would be. Think of rich man |
guilty Of cheesepsring Imagine nation
with overlooking Ceifers saying anything but,
"Hsng the expenstw We know that, as
q matter OF fact, the consciousness OF
plethora does not induce psrsimony. Walter
Bagehot long ago laid down the general
principle which governs public assemblies in
these matters eff you want to raise .
certain cheer in the House of Commons,
make q general psnegyric ON economy II
you want to invite sure defeat, propose 81
particular savingn And what We say is
that the habit of thinking in hundred
millions necessarily strengthens this native
tendency to squander the public money.
The careful scrutiny of details, the cruel
analysis of . fair rouud estimate Of, say
$4,000, 600, into its constituent items,
each of which can be cut 90 az to make the