Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-02-25

I finance ana Win the TedlOIltloI VI lls
natural economic policies. marvellous
! revival of prosperity, while Germany
/ for eighteen months has been under a
black cloud of depression and des-
/ pondency.
ver-Expansion In Business.
| The causes of reversal of Industrial
/ fortune in Germany are not analogous
Ito those which brought about the hard
times in the United States during the
second Cleveland administration. Pro-
longed uncertainty, industrial stagna-
ton and lack of confidence have not
been produced by the reversal of settled
national policies. The best American
analogy for the present period of Ger
man depression is to be found in the
panic of 1867. when collapse of conf
dence was caused by excessive expan-
sion of domestic trade without reserves
CT capital and organization required for
financing it. When the storm signal
was raised at Leipsic there had been
prolonged period of inlmoderate and
unrestrained activity, with new facto-
RES in the smallest villages. improves
ments of electrical and mechanical
plants beyond the requirements of the
pear future. the rebuilding of cities on
an unprecedented scale and the financ-
ing by the banks of a great number of
speculative as well as sound enter
prises. There was sudden revulsion
CT feeling from buoyant credulity to
hopeless depression. The bankers had
gone into everything. and could neither
draw out their investments nor supply
increased masses of capital for the
emergency. Cold water was required
for everybody had been drinking
brandy. Every business interest became
stagnant, and general collapse OF
credit and industry was apprehended.
Week after week, month after month,
the worst was feared and while any
thing like n financial panic was averted
by the prudence and conservatism of
capitalists and manufacturers, the iner-
tia Of commercial depression could not
be overcome. 1t has only been within
{. few weeks that there have been signs
of revival of national confidence. One
great financier after another can now
be quoted as saying that the worst is
over and that business is beginning to
mend. The fact that a large national
ten times over is a practical demon
stratton that there is vast reserve of
national wealth. The success of the
loan. unless all signs fail, will open the
way for an industrial revival.
Not Due to Changed Laws.
The experience of Germany proves
that a progressive nation, without
abandoning or reversing it's tariff, reci-
procity and monetary policies. may
bring about industrial paralysis by
sheer excess of energy and enterprise;
and, moreover. that when something
akin to nervous exhaustion has been
induced by unrestrained production and
speculative activity, we'll organized
foreign trade is a tonic by which the
restoration of normal activities may be
promoted. Now that the official statis-
tics of year of unexampled depression
have been compiled, the truth is re-
vealed that foreign commerce, instead
of being treacherous quagmire in
which Germany has been sinking more
deeply, has been solid rock where there
was a strong foothold. The mauufac-
turers and merchants have been hold
ing their business together mainly by
virtue of the steadiness of foreign
trade, while Generalization prevailed
in the home markets. If there has been
a deficit In the exports to the United
States in comparison with those of the
previous year. it has been caused by
the decline in the shipments and valua-
ton of sugar, and this has been nearly