The Savannah morning news., 1903-12-20

they cannot afford to spend the money
on luxuries they formerly did. The
jewellers have similar complaints to
make. They say that patrons who for
merly thought nothing of spending $685.
900 for a bauble, now spend 81 900, and
haggle over it. The tendency high
and low, seems to be towards economy.
The falling off in imports denotes small
er expenditures for the luxuries of life.
1t is not that there is less money in
circulation than there was two years
ago, but that a vast amount of paper
wealth has vanished. A man who was
long line of 10000 shares of stock out
of which paper profits of say 20 per
cent. had accrued, felt just 100000
richer two years ago than he feels
to-day, with no less actual money, per-
haps. But that 20 per cent. of paper
profits has gone into thin air, and
possibly the stocks themselves. He
felt two years ago that his profit of
$200,0 could be converted into cash
whenever he wanted to do it, and so
it might have been, except for the fact
that he and thousands of others SINH
larly situated, sought to convert such
paper profits at the same time, where
upon the profits vanished and there
was nothing left to show for them.
Much has been printed this week
about the economies contemplated by
the United States Steel Corporation.
1t is announced that the employees of
this vast concern, numbering about
$4,000 will have to accept wage reduc-
lions on the first of the year ranging
from to 90 per cent. The wage com
tracts now in force contain a clause
permitting the corporation to reduce
wages by posting notice of its inten-
n -.
notices were posted on Oct. /. Certain
contracts with members of the Anal
gamated Association did not contain
that clause and wages in those cases
will continue on the present basis un-
til July l. The employees have the al
tentative of accepting the reductions
or losing employment. The steel cor
poration says simply that 1t cannot
continue to operate its plants and pay
wages at the old rates.
1t would be very interesting to know
how the situation is viewed by more
than $1,000 United States Steel Corpor-
alton employees who were induced to
subscribe for the preferred stock at
$3.50. 1t Is stated in "Poor's Man
ual" that nearly $4,000 shares of the
preferred stock were so distributed to
the employees. The stock has been
selling this week between 81 and 30. II
has sold as low as 49M. At So there
is a loss on the $4,000 shares Of stock
distributed to the employees at $S2. SO
of nearly s1.575,O00. 1t is true that the
United States Steel Corporation guar
antees the employees who hold their
stock for a given number of years
against loss, but the loss is neverthe-
less apparent and must be felt by the
employees who used their savings t.
buy 1t on the terms proposed by
George w. Perkins, the life insurance
solicitor whom Mr.. Morgan took into
his firm three years ago.
As previously stated In this corre-
spondence, the Standard oil influence
Is now dominant In the affairs of the
United States Steel Corporation. The
unwillingness OF the Standard oil peo.
pie 20 publish reports on any OF theil
companies IL generally known. The
STANDARD oil Company has refused <
give information % the Department u
Commerce and Labor az Washington
and is expected 70 make a test casG
Of the governments right to exact such