New-York tribune., 1902-12-31

their farms and have money in the banks and
nothing but an unusual and improba BILE repeti-
ton of crop failures will destroy their buying
power So long as the farmers have resources
they VIII buy. and so long as they buy manu-
iacturers. except for temporary periods Of over
production. will be able to continue their opera
tons
The present outlook for manufacturing in
terests does not disclose indications of anything
more than temporary delay from overproduc-
tion in different departments. There is conflict
of opinion, which is unusually conspicuous
among the railroad men and manufacturers at
the present time. in regard TO the outlook from
manufacturing point of view. James j. Hill
is quoted being positive in the conviction
that We are in period of uncomfortable over
production
1t is true of this period, and probably will al
ways remain true. that production from time to
'iihe VIII invariably overreach the consumption
Out Ihat Is not the question under consid-
Grafton The proposition is Are we in such a
period Of overproduction that the manufacture
ers VIII not be able to rescue themselves. and
except for temporary delays continue their
operations? This question must be determined
by the underlying conditions. Will the buyng
power OF the farmers mechanics and Ia
who are employed by the railroad cononanies
prove sufficient to enable manufacturers 4o hold
osck their production until consumption has de-
Velopeo to such an extent to protect them !?
Ae the tendencies of overproduction are al
ways III Iorce. IL is important to consider
what extent the combinations of manufacturers
VIII tend to prevent such misfortune. The wise
policy Of the United States Steel Corporation
gives an illustration in this direction As the
managers of that corporation have refused 70
permit prices of steel products TO advance TO
hare iur
ger OF great decline AS that corporation con-
trolls SO large q proportion of the steel output
IL WOULD seem 10 be feasible for its managers in
sensibie cooperation with its competitors 10
prevent that overproduction which would tend
to destroy its business for long period
Probably the most potential influence now at
work in this country against a period of de-
preston brought about by overproduction of
manufactures is the power and example of tho
Steel Corporation. These same reasons annIv
IN greater or less degree to almost all branches
OF Our manufacturing interests So long there
lore, as the purchasing ability of the farmer js
sustained, it would seem to be a fair Conclusion
that the manufacturing interests except for
temporary overproduction. will be able TO con-
lAue thelr operations on legitimate and con-
tinuous average Of output. This means that the
mechanics employed in the manufactures will
also have buying power.
The railroads viii expend during the coming
year about 10O000O00 for permanent improve.
ments. This means that the railroads are flra W
ing from investment circles and putting into cir
culauon this vast of money almost directly
Tor the benefit of mechanics and laborers The
falroao companies are drawing this money from
the vaults and putting ii into circulation and
III VIII reach from time to time the hands of the
merchants and the treasures of the manufac
tories.
The marvellous development of the United
states at this time. its vast increase of grasp
on tne Weaith OF the world. the Incompatible
puying power of the farmer, the great promise
OF prosperity Oh the part of the mechanics the
nenencent influence of the We'll regulated gigan-
TIC corporations, all tend to prevent and fore
staH that period Of business depression which SO
many couoerva&iNA minds have feared