Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-12-31

ttIHlfrfs EiHW Ntntfftf- IHc iOaii4bte
capital gradually changes It's form
into investments less and less convert
ibie. Much OF that which might be
capital Il wasted In unwise enter-
prises. in extravaganza In living. IN
wars and absolutely destruction OF
property, until the available free cap
ital becomes wen nigh exhausted tile
world over, and the progress of new
enterprises must await The savings Of
more. Men continue - embark In
new enterprises, however, the capital
fails them and then disasse~ comes.
For eight OF nine months past there
were many Indications that the loan-
able capital Of the world was near ex-
haustiol This result was brought
about aot only by the enormous OK
pansi0n Of business plants and bust
ness Investment whie1 could not be
readily converted. but also by The
waste Of capital IN -aNtfavaganc- Of
living AMI hy the Spinith We The
fiDer war aa1 the R~hssian-Japan war.
and In Sael c~atastr0phies ~ tin,se OF
Paltimort ard San FlanciScn. II ie-
came impossible for the s0undest raii-
ROADS and other enterprise 10 borrow
money Tor new construction or rc-con-
gtrnctlc1. The condition was not cot'-
hned 10 this tountry, 1ut extended u
Warld over n was made manifest in
tfs conhfTieB Of Europe oven before
u was felt here, Secondly. the c0n-
clusion cannot be avoided hat the
revelations OF irregularity. breaches OF
trust, stock jobbing, over-issues of
stock, violations of laws and lack Of
rigid state or national supervision Ia
the management OF some Of our larg-
est insurance companies. railroad com
panies. traction companies and fnan-
cal corporations, shocked Investors
and made them withhold that little
loanable capital remained available. !
AaaI1 IIaalIaAuaa go
rect probably abroad than they had
here. because here we were able to
make distinctions while there at a re- |
mote distance. the revelations created
diftfust In our whole business fabric.
When. therefore, two or three in
stitutions. banks and trust companies
supposed to be solid were found To
have their capital impaired by stock
J0bbing Of their officers. the public
was easily frightened and the run
upon banks began. The question
then became not OF loanable capital.
but of actual money To be used I'M the
transactions of the day--a very differ
en- question. though. OF curse. very
closely related
1T would seem thai our system OF
currency IL not arranged 80 az TO per-
MT It's volume 10 be Increased tenn
pofariiy To counterfeit the snddcn
drain OF money by the boarding in q
panic. II Is probable that the atrin-
g"ncy which reached liz height ON
mat dark day of October "a might.
IN part, have been alieviated, had we ;
had a currency which would auto
i~natically enlarge Itself to meet Ta-
tremendous demand of a day or n 4
week. or "a month. while public conf =
uence was being restored. The ma. |
tional administration together with !
of the large capitalists Of ,w /
n UTL- ana AluHN IA 1Aga4 Fast fEa4a .la-.l I 1
ders under the load ard By Yaiinus +
devices OF an unusual character have G
brought about the pres mt condition u
u gradually Increasing ~corEIence. n
The injurious cons squcnces to fol- =
low from this panic are not lkely to 9
Dr. so long drawn out or 10 result in :
lnch disastrous industrial depressfop g
q the panic OF 1893 of the panic Of 8
.AfJ, u his for the reason that the y
OF the cuu1frV makes II 80 ~
nuch easier 10 resume business grad -
ANY To accumulate capital ana then
Q renew the enterprises which had H. ~
Abandoned for lack of n Ia the .n
.tst pace we ave a solid currency 81
'lth no suggestion now of a dsp4f- ~
RE from h gold standard. In 1893 p
ne pressure for free silver was on !"
nd the threat of national reputation ~
az much To- do with The DELAY win ~
ne retnrn OF prospect aus times. oar ~
~ = HfiA'AAA HitlANN MNN NOW Ia HkalL
'ilent condition and W. nave "a larger ~
Our farming communities ~
J me west today are not undcr the -
eight Of mortgages aud Of debt ~
depressed them In 1898 ana WI
sts TheN are prosperous and 81,
on
Again the railroads. which make I'd
? q large part OF the wealth Of This of
'untry, are on a much soldier roun- III
Than IlHN tN4Ya In ! 4 4u tft.. ~
any OF them had Ia he given into an
Ie hands Of receivers ana imm nsc IA
mounts expended by mona of re- cd
certificates, d.spidcing and de-. IN
the value of vast So ,urlties in ed
ger 70 put the roads ia a safe ana IN
come-earning condition. The rail- nc
aus today are In "a better physitaIt IN,
ndition than they have ever beon i'm ~,
history. But few of them have ma
Gently been built into new torritmv tr,
whicn business has to be created an
introducing 2 new population. trI
"Agaih, the balance OF ira ie Is with en-.
We are about 10 scftle for the Of
.hdr.i hllliions OF gold that We WITH tru
NV irtA Europe IN oraer e. meet vii
? demand FOR money In toe markets IN,
New ftrk, by the excess OF our *. is
fts over our Imports In the single ful
ot October. no
an these things point to the prob an
'i'AN " - ifHiptatihn nf ~nndpu or
Z after a proper liquidation aud AN est
iustttal dcpresl on ~ SOM mnnth4 ,
q resumntion OF business on "a uof- :
! blasts.
Modern buslne ,s ~ conducted %,
OF credit which Ia normal times IA
reuses the facility with which the IND
OF manufacture. production and am
2 can be Carried IN "A thnusand-fnle mo
.ond the limit Of earlier DAYS. ana =,
.bies a total OF many billions 10 rest -
a very small percentage uf actual WI
mes nassed Every manufactures. bet
~ merchant, b.. under modern con- the
ons. dependent IN the successtul Is q
duct OF his business upon bans the
~ sNtended az regular seas1ns. Tho
banks themselves in turn acquire cur,
means 81 granting hose credits ,inn
.ely from the moncy % thci. de- -
tors. And In loanlnr their de- VIM
rs. the banks rely on az" mprlh- ana
ltN that more than a certain part mod
be deposits will be rsiled fsf at won
otc time \ lack uf publ, GONE cure
iu &c.. banks creates "a com fem,
desire among dcpositors to With almf
1 netf money. The flight which 49,
IS the ere ditor-thr iaplzitors-
leads him to hpurl htt money ~t"l
.tn@ uke Wiid-trf ano b. as mn taln'
and unroaspugh- a- The drug
Y "I a mob. 4 "a $3.50 70 bank ,n- enter
Tho 'fnA. then call 900 their endo.
ana The tremendous -truc- sever
ui'h credit iumhlcs Of tl
49, 'itiN count fessiC