Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1905-01-02


ket dropped 80 TO 40 points; railroads
. were Obliged TO suspend new issues
necessary improvements We're thus
stopped. and q sudden contraction fol
. lowed In the demand for iron and
other materials which spread dIstrust
In every direction, More than a yeal
has already been consumed In recoy'
: ering ground lost as "A result OF this
trust mania. and even now we are not
enjoying The same degree of prosper
|, ity which existed before the collapse
Of that remarkable stage of our econ
omic development.
Causes OF Recovery.
The first half OF 1904 was spent
In necessary rest after the speculative
debauch OF the previous years; and
the marvel IL that the period Of de-
precision which followed was not long.
~ and deeper than II was. No more
striking evidence Of American recti-
peratiye energies was ever furnished
than by the widespread recovery fol.
lowing the trust craze which lasted
between 1897 and 1908. The causes
Of thIa recovery were a matter OF easy
understanding Briefly stated, they
were these: ID Forced liquidation
carried prices much below Intrinsic
values. ca Low interest rates and an
abundance OF money made many good
SECURITIES look abnormally cheap, CD
Expectations and final realization OF
a rich harvest caused general national
prosperity. based upon the rapid
growth ~ population, Industry and
commerce. In spite OF errors we
could hardly fail TO lead In progress
and prosperity.
Home Conditions.
Al home the chief source OF i'm
provement has been n profitable har'
vest. and once more the farmer has
been the backbone Of the nation. In
spite Of a short wheat crop. our agri.
cultural products this year We're val
ued at $4,000, 100000 by Secretary VIII
0 Of the department OF agriculture,
compared with $4,4S0. 900 900 In 1908
and s3.742.0 O0. 900 In 1899. There was
an Increase In both quantity and val.
ues. wheat excepted, which places the
American farmers and those depend
ert upon them In a position TO spend
and enjoy more than for many years.
But prosperity has not been confined
TO the farmers. Our mines are turn
Ing out immense quantities of iron
aud copper TO meet present demands,
aud our mills and factories. with few
exceptions. are well employed. North.
ern cotton mills suffered from the
speculation In cotton also from ON.
petition with southern labor. But
this seems TO DO the darkest spot In
American industries and the real
marvel has been the rebound In steel
from "pauper' to 'prince.n During
the first quarter Of 1904 this great
industry was 80 depressed by a
tion from the boom period that pro.
duction OF pig iron fell 10 tho rate Of
IL, 000. 900 tons per year. Now It IL
back again running at the high record
Of l9.000,000 tons per year, and
would exceed that rate were II not for
the scarcity OF coke. Today we are
producing pig iron faster than Great
Britain, Germany and France com
bined. Our copper production IL also
SURPRISING the record. and Is fully 10
per cent greater than last year
High Prices.
II has been a year OF high prices
FOR nearly all principal commodities.
The sauerboek index number for tho
London commodity market tthe best
International indicaiorl stood at 7l.2
the close of November of this year.
December, 1908, II stood al 10, and
July, 1900, at 76, thus showing a
high. but not the highest, level Of
In the London market which
airly represents the markets Of the
world, In the American markets
,rices are also unusually high, though
It'll below the highest figures. In
he United States food products are
exceedingly high Wheat, for exam
lie. has been selling zoe To SOC peri
,ushel above last years figures ow,
ng to a short crop at home. flour, In
consequence. Is fully a dollar per
higher. Other cereals are also
elling above last years prices, part
Y In sympathy with wheat. partly be.
aus of enlarged consumption and in
pite Of good crops. All meat prod
cts are bringing better prices than a
ear ago. chiefly because the Increase
I production Is not yet keeping pace ,
18th the growth of consumption cof /,
40 Ii higher than last year. notwith-
tanding big stocks in the United I