Perth Amboy evening news., 1906-02-09

VA ton. On II books are orders now that to nlllWoud el-
ply our capacity for about a year. AND THESE ARE
BEING ADDED TO. The prices received might be
better, but they are fair. This demand on our capacity is thus great,
Notwithstanding we have increased our productive facilities about 40
per cent since our organization. What is our experience is the expe-
rence generally of manufacturers in their degree and measure. The
outlook for the year is very satisfactory. There are few clouds in the
skies, NONE OF THEM THREATENING, and the temper of
business men is such as to incline them to safe and conservative
courses.
The period of depression of a year or two ago might be regarded
as a sort of house cleaning. The commercial enterprises that survived
the ordeal are stronger for having passed through 1t successfully and,
in fact, demonstrated strength in passing through it Sc well. Those
which were INHERENTLY WEAK, of course, went down. Those
which were left were strong and thereby made a condition of strength
generally In short, we are o a better basis than before. The gen
eral conditions r. not as SPECULATIVE as they were.
The financial condition in all ways is more stable. 1t is true that
we would be somewhat better off if there was a greater ELASTICITY
in III currency. Money is somewhat high. Yet l think that mer-
chants have not much difficulty in getting the money they need in
their transactions. IT. is not easy always to point accurately to the rea-
son for the stringency seen in the high rates of interest. Suingencyi is
unquestionably felt by the banks, which under the national law must
hold a legal reserve. The trust companies, however, are not under
such strict requirements They can loan practically all their moneys
AND ON LONG TIME, conditions which induce deposits with
them, which go out again on long time. These facts in some measure
account for the high rates for money.
OF COURSE 1T WOULD BE BETTER FOR COMMERCIAL PUR-
POSES IF MONEY WERE CHEAPER AND SOMEWHAT MORE ALBUM.
DANT, BUT THERE is NEITHER DANGER NOR OBSTRUCTION IN
THE PRESENT SITUATION. IN THE MAIN THE FINANCIAL OUT
LOOK is GOOD.
Some time ago we had what has come o be known as" the bankers
! panic We had been passing through an era of promotion, of specu-
lahon. Many enterprises of various kinds and degrees of value had
been put on foot. The banks loaned literally on these securities until
they found they were carrying too many Of questionable value. There
was a common movement to curtail these loans AND REDUCE
THE VOLUME OF COLLATERALS. The result was to precipi-
tate a period of liquidation and to put an end to undue promotion and
speculation. 1t was somewhat drastic, but it must now be admitted
that it cleared the atmosphere. 1t certainly did check the tendency to
undue speculation. Its effect was to bring back financial transactions
to a sounier basis. Today fnanciers will not advance money on enter
prises the securities of which do not represent values o Il undertake
their promotion. This has strengthened the financial condition. !
Of course if there was evidence of an intention to push a bad law
confidence, now strongly shown, would be shaken. The presentation
POINT OF PASSAGE, however, is the disastrous thing The only
cloud in sight which has darkness in it is this, think. There is p
prehension that something of this kind may arise. The apprehension
is not a panic, not even a fright. But such things are possible, and for
them the fnancier must always have out a weather eye. At present [
see nothing to give alarm.
The revelations of the insurance investigation may have an inhu-
cnce finance, but not AN evil influence. THERE CAN BE
NOTHING EVIL IN CORRECTION. If matters have been
wrong they should be corrected. Far more danger will result to the
financial structure from wrong than from right. There may be some
temporary Inconvenience growing out of the elimination of wrong
and the readjustment to right methods. The discovery of an unbal-
anced wheel in a piece of machinery does not mean that the machine
is to be condemned or to be made useless. Stop the machine, take out
the wheel, PUT IN ANOTHER that does its work properly and
set the machine going on a continued course of usefulness. Abuses
and errors should be, as they will be, corrected on their discovery. L
do not think that the revelations will be obstructive or damaging. I
am certain matters will be made better.
NOR DO THINK THAT THE APPLICATION OF REMEDIES
CAN BE TOO FoRcEFUL SHOULD SUPPORT DRASTIC LEeIsLA-
TloN FOR ALL THAT is WRONG. SEE NOTHING IN THE OUT
LOOK TO GIVE APPREHENSION.