Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-07-03
OUR PROSPERITY.
The Present Remarkable Status
of American Trade.
There is No Sign Of Reaction Yet to
be Seen.
Production is Great but Is EquaIlcd by
Consuming Power of Country.

United states IS the consuming power
of the American people. For several
years the output of manufacturing es-
adjustments and all the processes of
production have been at high tide.
Conservative observers declared that
the pressure was too high and could not
be long continued. Their predictions
of reaction have not yet come true.
In no important line is production cur
tailed.
Perhaps there IS no better Indication
of the steady flow of the current of
trade at the high water mark than the
earnings of the railways. Last years
traffic was so great that many be-
lieved the climax had been reached.
Notwithstanding floods and strikes.
most railroads show an increase of
gross earnings over last year. In May
tWenty-one leading roads showed an
increase of net earnings of 90 per cent.
This is the more remarkable since the
increase of rates has been less in pro-
portion than the increase of operating
expenses due to higher wages. The
good showing is made possible only by
a great volume of traffic, freight and
passenger. Railroad authorities say
the tourist travel this year is nearly
double last year. The American peo-
pie have money to spend and are
spending it.
Bank clearings are well up to last
years average. For the week ending
yesterday the total clearings, all cities,
We're $3.50, 000,0 against $1,962 100000
the corresponding week of last year. The
i. H.
wholly accounted for by the smaller
clearings in New York, where Wall
street dullness cut down the total for
that city $96, 100000 in comparison with
last year. Chicago, Philadelphia ard
st. Louis show large gains. In fact,
the business of the country appears to
be going on at an undiminished rate
regardless of speculative sluggishness.
The stupendous decline of a thousand
million dollars in paper values in Wall
street during the first half of the gear
has not apparently produced the.
slightest effect upon general business.
The theory that Wall street is antici-
pating or discounting a decline of pros
perity has so far found little basis of
fact to rest upon.
values of stocks appears to be that
advanced by a Chicago banker, as fol-
lows: The promoters and reorganizers
have put out so many securities that
the country simply has not money
enough to absorb them even at a cea-
sonabe estimate of their value, and
would have nothing to do with them at
an inflated estimate. The country is
using its money for its regular BUSH
ness operations, and stocks simply had
to come down. Some of them are now
below their actual value.
Another and most striking evidence
of the extraordinary consuming power
of the people of the United States in
this period of business activity is found
in figures made public today by the
treasury bureau of statistics. These
figures show that while the expectation
of manufactures has increased only
81, 00O, 900 as compared with the CORE
spending months of last year, the i'm
portation of manufacturers materials
has increased $66000,000 as compared
with the same months of 1902 and S131, :
100000 as compared with the corre-
spending months of 1901. AS it can
scarcely be presumed that the manu-
facturers of the country are importing
in excess of their present or i'm
mediately prospective requirements, it
would seem that the increase in manu-
features which this growing importa-
ton of materials indicates is being
consumed at home. since expectations
of manufactures for the year show no
material increase.
A rapid increase in the importation OF
manufacturers materials has been the
striking characteristic of the fiscal year
about to end. For the eleven months the
total value of manufacLurers, materials
imported amounted to- $i5l ,0Sl, 16S. against
$3S. 775, 76i for the same months of las,
year, 9,524.957 for the corresponding
months of 1901 and 1868 As, 072 for the same
months of 1900. Prior to 1900 the imports
of manufacturers materials had never
touched the $3tG, 900, geo line. except in 1Sg,
when they were $500, 461.7 95. COMPARING
1903 with 1890. the manufacturers materi.
ais imported have nearly doubled in value
those of the eleven months of 1890 being
$242. 437 99f.
Not only has the importation of maun
facturers' materials increased, but the
home production of the great articles useC
in manufacturing has also increased The
production of Pig iron in the United States
in 1902 amounted to 17,S21.307 long tons
against 13.7S9,2i2 tons in 1900, an Increase
y
cent, while cotton production shows ar
increase of over LOCO. 900 bales and wool q
gain of 30.000000 pounds. comparing $50.
figures with those of 1900. The principa
articles in which the increase in importa.
tons of manufacturers materials occurs
are raw silk, which shows an increase a
1,500. 600 pounds, or Is per cent. in the ter
months for which the detailed statements
are at hand; india rubber, which shows az
increase in quantity of 3,500,O00 pounds jr
the ten months over the same period O.
the preceding year, and Manila hemn
which shows an increase of more than i,
per cent. in quantity imported Fibers. a,
Il whole allow an increase of 81 600 600
comparing the eleven months of this ven
with those of 1902. Iron in a PARTIAL,
manufactured state for use in manufac
turing also shows large Increase
| Notwithstanding these cheering cvi
dences of the Sodity of American pros
perity and the consuming power Of ON
| thriving people, far-sighted business mer
| are looking to that period in the near flu
| ture when there must come a dminutiO,
OF consumption in this country, or d,
least failure of the rate of the consump
| ton to keep pace with the increase q
| production. When that time come,
| American manufacturers Will be force,
| to 60 into the markets of the world /,
sell their surplus. Prices. now abnormaI
| ly nigh because the Americans are ahL
| to pay them and are willing to pay them
| will drop to the world level. and tn,
American competition in the world.