Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1907-11-06
THE CRISIS PASSED
HENRY cLEYs SAYS THE afiYs-
TERRA" PERIOD IS
OVER
FINAL REGENERATION, iiowEv.
5$s Err WILL BE SLOW AND
IRREGULAR

New York, Nov. 5Henry clews
says:
The acute stage of the financial
crisis has passed; hysteria has sub
sided and the situation now appears
well under control. 4 This does not
mean that an immediate recovery is
to be expected. Recupe will be
slow and irregular; the causes for the
recent collapse being too deep seated
and complex to indulge in any false
hopes in that: respect 1t is now full
" recognized that the crisis was chief
ly due to the exhaustion of floating
capital. Additional sources of weak
ness were the overextension of credit.
the overproduction Of securities, the
impairment of confidence by corporate
mismanagement, and the occasional
interference of national and state
governments in corporation affairs
Wall street has now amply discounted
all these drawbacks, having done SO
in three successive stages by means
of the breaks in March, August and
October In the financial district the
situation is gradually Fighting itself
After liquidation on a tremendous
scale the surest and most natural re-
lief came through gold imports, over
$25, 000,O0 having thus far been en-
gagged. The other form of relief
that of clearing house certificates
though artificial was equally efficient
| This latter expedient has been resort
ed to in many of the leading clearing
houses in different parts of the coun-
try and has done much to restore
the equilibrium; so, too, has Secre-
| tary Cortelyou's prudent and liberal
| action, as well as the generous assist
ance of our leading bankers.
''As we have already said, it would
be mistake to anticipate prompt
recovery in values and business.
While Wall street has had it's full
share of liquidation, the process of
readjustment is now passing on and
extending to industrial and commer-
cial affairs. Fortunately the storm
struck Wall street with values al
ready upon a low plane, which great
ly mitigated the force of the blow and
averted a disastrous panic Many
commodities, however, are upon a
high level and majority Of our in.
dustries have until recently been
working under full pressure, and the
inevitable curtailment of credit m 5ans
| a lessening of their activity Econ
omy in management will now have to
be enforced; many hands will neces
sarily be discharged, and with thu
purchasing power of the people thus
impaired the consumption of staple
goods will surely decrease. This turn
in the tide comes in many respects at
an opportune time since there are
few markets which are burdened with
an oversupply of merchandise. New,
ertheless, any material decrease in
consumption would soon lead us in.
to a period of overproduction with its
unpleasant consequences, and it is
here where lies the point of weak.
ness in the merchandise markets
Lower prices for commodities, how.
ever, will bring us to a more nor.
NAL and healthy situation, stimulate
consumption and encourage a fresh
forward movement. Lower prices for
wheat and copper have already great.
,ly stimulated the export of these ar.
ticles. Cotton has been held back by
high prices; but monetary pressure
is likely to have the same effect in
this as in other markets"