Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-12-30
Annual Review of Financier is
Hopeful For Future of Bus
mess Interests
DEPRESSION FOR A FEW MONTHS
Effects of Recent Financial Panic is to
Be Felt Six Months or Year, With
Gradual Improvement = Many EIe-
ments Bairned for Late Flurry-Fin-
ancial Center Hit Hardest.

ulIlOHS OIL lHt CObuli ''IiA' ~i~'''S'
the financial expert, says the worst Is
past, and that conditions will I'M
prove gradually from this time on. He
says, however, that the effects OF the
recent financial panic will be felt in
the centers for six months and per-
haps year. In his review he says:
The close of the year finds us en-
ergetcally struggling to emerge from
one of the most disastrous financial
panics in history. Security values
have shrunken at least one-third ana
in many cases more than one-half OF
the figures quoted year ago.
While the causes of the panic are
now generally understood, 1t may pc
well in taking account of the past
twelve months to briefly cite the CHIEF
reasons. Among these causes were
general OVERRIDING; over-eXtension or
credit: transportation; over-issue or
securities; great industrial expansion;
excessive underwriting schemes, eX-
cessiye mining and real estate specu-
lation: earthquakes at home ana
abroad: Japanese and South African
wars; general public extravaganza;
exhaustion Of floating capital; distrust
induced by corporate mismanagement
and. finally, the hostile attitude OF po-
litical leaders and legislative BODIES at
home, stimulating erroneous preJudlce
against wealth. These conditions, now
ever, are now a matter or history anu
of little interest except for the lessons
they convex. 1t is Of first Importance
TO recognize that a complete change
of base has taken place; and that
the business world, whether 1t likes II
or not must now be actively concerned
in adjusting itself to new conditions.
We have been suddenly preclpltated
from a high level to lower, ana the
sooner this vital change is admltted
and conformed to, the prompter anu
sounder VIII be the resumption OF bus-
mess activity. Fortunately the panic
fell with greatest severity upon those
best able to bear 1t; wealthy institu-
tions and the rich men being the
chief sufferers. Upon the industrial,
mercantile and laboring classes the
shock has been much less severe;
distinction that it is important to bear
in mind 1t would be folly, however,
to indulge in decisions as to the maj
effects of the panic. In greater OF less
degree the consequences VIII De dls-
tributed over all parts of the country
and II ia not unreasonable to be pre-
pared for at least year of COMPARE
tive depression. certainly In the east
where commerce and industry are
most concentrated.
There is reason to believe that the
worst consequences of the panic nave
been limited to financial circles But
to thoroughly understand conditions II Is
necessary to inquire into the condition
of our chief industries. First comes
the American farmer, who last year
raised crops valued at s7,4OO,OOO,00o,
much the highest figure on record Els
condition must be highly satisfactory
for after seven or eight years OF un-
prosperity he is now out
of debt and so well situated financially
as to be comparatively Indifferent re-
earding any business recession IN lhe
United States Should he fail 10 Sc
cure good prices at home he IS almost
certain of obtaining them abroad.
When it is fully appreciated that ac-
cording to the census about 35 per cent
of our working population is engaged
in agriculture, it will be readily recog-
nized that the farmer is still the back
hone of the country in spite of the
fact that the growth Of agriculture is
hardly keeping pace with population,
and is still producing less than one
half the amount turned out py our
Our Growth in manufacturing Is
enormous, and in 1907 our products
must have considerably exceeded SIS
300 OOO.0 in value; but owing to the
extensive. use of machinery only about
25 per cent of the country's hand la
Dor is thus employed. The manufac-
ing division of industry will, however,
feel the panic much more severely than
agriculture. General retrenchment
necessarily following financial disaster
Will restrict demand-not alone Tor
for many staple products
and lower prices must follow. 1t is
plain also that the purchasing power
Of the public at the former level has
oeen exhausted and costs of produc-
ton must be reduced to lower and
more normal level in order to cheaper
the cost of living. Labor may choose
to resist this tendency by holding up
the rate of wages as long as possible;
out natural law will assert itself in the
end, and both commodities and wages
must accept their share in the inevita-
Die readjustments as capital has al
'eady done. Industrial reaction, there
,ore, has not yet run it's course.
1t is worth while, however, looking
still more closely into the industrial
situation. The most important di-
Vision CT manufactures is that Of food
products, of which we produce over
g. 900 900, 900 annually. This trade with
lew exceptions is in very sound con-
lition, owing mainly to growing con-
and the absence of any over
In the next important di-
yision Of manufacturing of cloth
ng of all sorts with product of
nearly $4,000, 100000 - there is also
In absence of general overproduction;
md the great majority of our textile
mills are in an exceedingly strong
financial condition, a result of the un-
usual profits of the last two or three
years. There has been considerable
in the retail branches |
If the dry goods trade, but the condi-
ion of the latter as a whole is sound
Values have heen abnOrmally high, |