The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1906-05-09
FRISCO AND IT'S RUN.
Financial Effect Will Be Widely Dis
Notwithstanding Of City Will
Stimulate ndustry-Insurance.


and the absorption Of floating capital
in repairing the damage, must neces-
sarily have a widespread financial ef-
feet; but the very fact that it is wide
spread will serve to mitigate its force.
Material interests have become so
closely knit together over wide area
extending even beyond the limits Of
any one country, that the burden Of
loss and the task Of recovery, which
would crush the community di
rectly afflicted, are borne by a vast
constituency, whose interests are more
or less implicated with its own III the
network Of modern industry and COM
merce. This involves a wide '.commu-
nifty Of interest," policy of "help one
suit of complication Of individual
self-interests.
It will take time to supply the place
Of capital destroyed, and until the
energies of production feel the i'm
pulse capital for the purpose will
have to be drawn from other uses. The
insurance money that is sent into San
Francisco will have to be realized
mainly from disposing of assets Of the
companies in this country and abroad
and depicting their reserves. This
will affect the market for securities
and the interests bound up with 1t.
Money borrowed for the work of re-
pairing the devastation, for construct
ing new buildings, supplying equip
ment, for reviving business and that
invested from the outside, with a view
to future results, will in like manner
be withdrawn from other uses and in
vestments for there is little idle or
waiting capital to be had. All this
cannot fail to have a disturbing effect,
but it Will be so widely diffused that
it will be seriously felt only at points
collection and transfer Of capital, to
be gathered up over a wide area and
bestowed upon the work Of rehabilita-
ten at one spot, the normal currents
Of exchange will be considerably de-
ranged and financial adjustments will
be materially affected for time. The
process OF readjustment will go on
with diminisl1iilg effect upon those in
terests called upon 20 contribute to
it until e normal condition is estab-
lished again.
There is 40 question that destruc-
ton is los, zv:2:ors is -2ot diminished in
volume by being widely distributed
through the cor.piex arrangements Of.
modern finance hut is effect upon any
particulsr community or interest is
greatly mirigated by this distribution.
When the work Of restoration begins
another set Of forces is put in motion,
and they are likely to begin promptly.
There will be a call for material and
labor, as well as of capital, and this
will not have to draw. exclusively up
on that which has already been pro-
duced, but will stimulate new produc-
ton. The demand will affect prices
and wages, and the supply Of materials
1o1 nfh no O.
diately concerned, on account Of the
exceptional draft upon available re-
sources Until the supply called for
can be furnished and its place taken
by new forces Of production the dis
turbing effect will be felt, out in time
the adjustment here will also be ac-
complished.
There is one element that enters in
to this process Of repairing losses
due to destruction of property and alb
sorption Of capital by war or calami-
| ty that is apt to be overlooked or un-
| derestimated. The two great factors
1 III Whatever IS OOllS WILL
| its fruits, are the resources of nature,
! from which all value is derived, and
the energy and industry Of man by
4 which they are turned TO account. The
| resources are treasure house ready
to be drawn upon according to need,
and the energy and industry are never
exerted to their fullest capacity. Much
depends upon motive and incentive to
increase productive activity, and that
which is devoted to the repairing OF
! losses and creating of new facilities
IS not necessarily taken from that nee
essary to provide for current wants. II
is the added force of stimulated energy
and industry that makes the recovery
from war and disaster sometimes ap-