The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1902-05-08
THE FINANCIAL SITUATION.

THE FINANCIAL SIIUAIION.
The present prosperity which covers
the land has given rise to the question:
How Long?" One of the ablest and
most reliable of the financial papers OF
the country, the New York Evening
Post. devoted itself to a consideration OF
this subject in last Saturday = issue, and
the following summarizes the views OF
the editor
"A survey Of the financial situation,
at this time, reveals sngularly inter
esting state Of things Abroad, the Boer
war, for nearly three years milestone
on the neck Of British industry, is ap
parently about TO end The production
of Transvaal gold, cut down from ~,
900. 600 per month in 1899 to almost
nothing in 1901 has risen already to
two million dollars monthly, and Will
reach its figures Of three years ago when
the Cape railway is no longer clogged
with government transportation. The
continent, in advan . of these new sup
plies Of gold, is slowly recovering from
its trade prostration,
In the United States, industrial pros
perity continues at rate hardly anti
cipated even in the hopeful forecasts
contributed to The Evening Post on the
3lst Of last December The basic iron
market is in state Of unparalleled nc.
tivity, with production at much the
highest rate in history, Railway earn.
ings, ~ now coming to hand, average
fully per cent above last year, with an
increase OF barely per cent in mileage.
Trade payments through the clearing
houses Of interior cities are running 10
to 20 per cent beyond 1901 and 30 to 40
per cent beyond 1901, and their decrease
in the East il wholly attributable 10 the
relatively smaller stock speculation.
The first OF the harvests, winter wheat,
will possibly be- deficient, owing TO the
drouth but the loss may easily be re-
paired with good luck in corn and in
spring wheat acreage The currency
seems 10 be secure, the revenue IL abun
dant, and evils arising from such sud
den expansion in the treasury surplus
~ tightens the money markets are in n
fair way to be corrected by All intelli
gent revenue reduction law.
"On the surface, then, almost all in
dications would appear to point to con
tinued prosperity and industrial happi
ness. How does it happen that many Of
the most careful and experienced watch
ers have expressed msgivings over the
situation
Such misgivings, we imagine, base
themselves wholly on the current OK
periments with capital But If the
structure Is to stand in all it's parts, it
must be soundly built.
Examination Of the present position
discloses some reasons for legitimate
disquiet A glance at the industrial
prospect shows a capitalization Of exist
ing prosperity 70 enormous as to create
grave doubts as 10 the ability to sustain
its full requirements in the future.
With scarcely an exception, the coun.
trY's industries have been turned into
corporate form with liabilities ON an
absolutely unheard Of scale
Immense ~ that increase Of profits
has been the ratio Of increase in CAPT
talization has trebed and qu9drupled
It, But the liabilities Of scores Of cor.
porations have been adjusted, not mere.
ly b. what il actually earned today but
10 the full expectation Of what the next
decade may add to It,
Sums which would have equipped a
great corporation dozen years ago. aud
which might do so again. are disbursed
outright 10 syndicates for the mere ser,
vice Of guaranteeing sale Of new CAPT
tai issues. To some extent, this may be
prudent and necessary finance; but ii N
calculated 10 make old.fashioned obser
yers stop aud wonder who il 10 foot the
bill.
How far these huge sums Of money.
poured out with 70 free hand, have
themselves been raised by credit opera.
tions, is another question suggested by
the returns The answer is not alto
gether easy TO determine.
The time for application Of prudent
reforms in such directions II time ike
the present when the industrial skie,
are clear, the cOuntrys business hopeful