The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-12

In volume sufficient 10 bring about the low
prices for II which ruled for Q quarter Of .
century previous to 1890. and which were
OF such enormous advantage to the workers
In our shops and factories and to every one
In the country, indeed, sxoept the farmers
themselves, o minimum annual crop OF
wheat will be required for the next few
years to como Of quantity exceeding the
maximum production OF any year ever
known In our Agricultural history. No
competent critic believes that any such
yield 10 possible unless some way 10 found
Of increasing the productivity Of the soil
already under cultivation. The country's
yield OF grain will be increased eventually,
no doubt, as 1t has been tnoteased In the
thickly populated countries Of Europe, tho
process consisting, naturally, OF greatly
increased oarefulness and thuroughness In
the conduct Of farming operations. Mean
WHILE, what mark win all this necessary
reimbursement leave upon the financial
worldp 1t will be the trace Of an GEO.
nomio revolution. We will have prosperity
for the farming class. Of course but II will
be prosperity modified and restricted by
the fact that the money with which It
has been purchased has besn wring from
the pockets Of all the people In the country
not engaged In agricultural occupations. Up
to a comparatively short time ago almost the
only question asked by Wall Street each
year for the purpose Of gauging the proba-
bilities OF the state'o the oountry's business
in the year to come was, what would be the
outcome OF the seasons crops 1t was
held, and held correctly that that which
mostly determined the wealth Of the country
was what came out OF the ground for
II was realized that large yield Of the lead
ing agricultural staples meant that our
surplus Of these for export would also be
large and that thus our means OF purchasing
Injuries and commodities In foreign lands
would be increased. Under such oircurn-
stances high prices for these staples meant
that the ordinary trade balance in our
favor would be made unusually great. But
with our export .trade in cereals utterly
dwarfed and perhaps made soon to dis
appear altogether under the Necessities
Of home consumption, this way Of estimat-
ing the yearly character Of the financial and
industrial situation il no longer accurate.
Obviously, due account must be taken Of
the influence OF these altered conditions
upon our manufacturing enterprises,
1t goes without saying that this Influence
will be, at first at least, hurtful, even though
the injury from it W III be so widely scattered
as to render the visible results OF it. in any
particular instance, minute. The vaAt army
Of those who gain their living directly or
indirectly through the manufacturing in
dustries will be forced to labor Under the
additional burden Of the payment Of $780,
900 900 or $500 900 900 or perhaps even a
greater sum more fer their cost Of living
than they did in former years. How is
this burden to be lifted' Manifestly by
such an increase OF the sales Of nanufact-
ured products that the new disabilities
that have been created will be overcome.
A certain growth in the output Of manu-
features will, of course, be normally main
tanned from year to year. But can the ex-
traordinary growth desired be secured1
That Is the final and most important ques-
ton, It must suffice for the present occa-
sion to merely indicate the opposing views
on this point as they are held by our most
thoughtful and experienced business men
It Is nnaintained on the one aide that there
is practically no limit to the ingenuity,
economy and sagaoity OF the American
manufacturer, and that, blessed with the
possession OF the immense and precious
natural resources OF his country and aided
by the singular and especial increase in its
population as compared with that OF other
countries of the world, he can confidently
contest with all corners the business
feld that lies before him. It Is asserted
on the other hand that It Is evident
that our home market Is already unable
to absorb our production Of manufactured
articles and that general manufacture
ing business here IL even now in a
state OF overproduction, endeavoring to
bolster itself up with pool agreements
and other similar attempts to maintain
prices in the face Of q diminished demand;
that the business is suffering from the
large increase in the number OF new shops
and factories built in the last one or two
years upon the idea that the enormous
sales OF manufacturing merchandise in
the boom period Immediately behind us
would be perpetual; and that beoause Of
the comparatively great cost 81 this pro-
duction, owing principally to the elevated
level OF labor wages paid here, our manu-
facturere are powerless 10 compete In foreign
markets with the production Of foreign
makers 1t LIS not intended here to express
any opinion as to the respective merits OF
these two contentious Each OF them is
supported by men OF authority, bringing to
bear on the subject poised minds and wide
information Nor can II be necessary to EN-.
phasize the general Importance Of the mat
ter as It pertains to either the Investment
or the speculative market for securities In
the future.