The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-10-24
The Business World.

LILO ouSl4CSo WO14us
The week has been filled with re-
ports of disturbing nature from the
country at large, the worst of them
coming from the financial and indus
trial centers Of the east. Every state
has added something to. the whole, and
it is possible to look back over a num-
Der of years without finding six-day
period in which the general CONNER
cial news carried so little Of new en-
couragement and so much Of unfavor-
able bearing.
Two large financial companies in
trouble in Baltimore and two Pitts
burg banks involved in difficulties
were the distinctively bad features and
with these there were a score of minor
reports of a like nature. These finan-
cial embarrassmentsw were for the most
part the result of overextensiOn, or of
the failure of some particular plan, as
in the case Of the Baltimore trust
company that financed a Mexican rail-
road, and afterward found itself un-
able to float the bonds either In Lon
don or other foreign centers of wealth,
much less in New York, where the
edge has long been off, the exploitation
period is we'll over and where new
frowned upon. In a measure the
coming together of the troubles was
not a bad thing, since it is now seen
that they were inevitable and by their
passing the atmosphere is cleared.
Neither should there be anything nee
esarily alarming in a few failures in a
| country so vast and so rich as ours.
Occasional troubles are to be expected
under almost any circumstances.
From the fact, however, that for sew
eral successive years the country has
been unusually prosperous, and such
reports extremely rare, they come now
with more, of disturbing effect than
their relative Importance should war
rant. t.. H. -. p.
Of vastly greater import than the
troubles of few weak and badly man
aged banks or trust companies, are
the reports from day to day respect
ing the Stacking up in the Industrial
field and the laying off of men thru
the closing Of plants. This has gone
beyond the stage where 1t is necessary
to particularize. Beginning some
weeks ago with moderate curtailment
of production in iron and in coal, il
| has passed to many other lines, and
from present indications is likely tc
become more general from this time
| on. '..-
This is the natural recession from
the former extreme activity, the ma
tural reaction, the inevitable drift into
comparative quietness that has been
foreshadowed and predicted for some
time. How serious it is to be no man
can tell at this time, A few weeks OF
another month will make the outlook
ions are not worth much. Every OBJ.
server is Influenced in great degree by
conditions close at hand, and opinions
vary. The commercial agencies in theil
trade reviews agree that recession is
upon the country, and one makes &
feature Of the number of idle men al.
ready seen, which it believes to be {
serious thing, and from observation
covering the entire country it esti
mates that by the time winter begin:
$4,000 men will be seeking employ
ment. Here again there is opportun
ity for conservative judgment, and NJ
one should think Of SO large a mum
Der of idle men without reference tt
the immensely of the country and thu
i new opportunities arising in the ives
and northwest. 70 <.S
i Neither should it be assumed tina
such closing Of plants as has alread!
been learned of is more than temper
+ airy, at least until the contrary il
!, known. One need not be blind tt
changing conditions, nor should on,
on the other hand take the bad new
too seriously. W. II
= Without doubt the long predicted
recession is here at.iast, but it is no
to be supposed that it will be NOR
than a healthy reaction to be followe.
. by greater attainment finally.
Even while the bad news comes il
freely there are multitude of favor
, able things in the view, especially Ii
: the west" The president Of one of tn
t largest railroad systems in the ives
states that his company has an i'm
mense volume of business in sight TO
) months to come, that no men hav
r been laid off nor are any likely t
!, be, that no plans Of retrenchment hav
} been adopted and that the outlook o,
7 the whole is gratifying. For October
l so far as returns are obtainable, tn
gross earnings of the railroads of tn
. country are 60 per cent larger thai
in October last year, Notwithstanding
, losses by some roads.
Foreign trade is better and export
) larger. Jobbing trade is generall
, quiet, but merchants in lines wher
+: business is solicited for later shipmen
l report orders good, which is evidenc
, that buyers have confidence In the sit
" uation.
l The stock market held surprisingl
: well against reports Of bank trouble
| and other depressing influences an
while declines were forced in some In
= stances the list was stubborn agains
8 pressure. The belief is growing tina
: something pretty bad will have t
e. come along to give the bears new am