The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-08-25
SHAw ON FINANCE.

the treasury, may be joke S can
didate for the presidential nomination,
but in his own field of finance his
opinion is worth consideration. In an
authorized interview with a New York
paper, he gives his views on the pres
ent financial situation, and expresses
the opinion that the market price of
stocks has very little relation to the
actual condition of the country, and
backs his conclusions with facts and
figures to sustain it.
Our farms produce more than So
800, OOO.O 600 per annum. and the prospect
is good for an average crop. Our mines
yield more than $500, COG. 900, and our
forests more than $1,000, 100000 And
neither of these sources of wealth has
been exhausted. The output of our
factories, in other than food products.
is $4,000, 900, 900. and no fires have been
extinguished. The railways earn more
than $4,000, 600 900, and they are all in
successful operation. The payrolls of
our factories and railways aggregate
approximately $500, OOO, 900, and the
scale of wages has not been reduced. -
While these deductions may not be
of much comfort to the man who has
his all invested in depreciating securi-
ties, it is substantial assurance to
legitimate business interests that no
widespread calamity is impending. So
long as the crops. the real sources of
wealth are unimpaired, the productive
energy of the nation is safe from per-
manent or violent shock. The danger,
as Mr.. Shaw sees it, is quite as much
from timidity as from any actual pros
pect Of recession in the general pros
perity. As Mr.. Shaw expresses it,
''the people will have exactly what
they expect. If those who have money
in the banks withdraw it and lock it
up; if the banks refuse to grant ac-
commodations, and if the consuming
public decline to place orders, then we
will soon witness the effects. Let those
who think that times of disaster fol-
low each other at regular intervals
yet experienced a period of severe de-
preston that was not traceable to fin
ancial or economic agitation or legis-
lation, and usually to both.
I'm 1898 the redemption of green
backs in silver instead of gold was
openly advocated; the party in power
was under promise to remove the pro-
tective tariff from our industries, and
of sixteen to one was championed by
prominent members of both parties.
The country might have survived any
one of these sources of alarm, but it
could not survive all three.
AT this time no one questions our
financial system, and the tariff will not
be touched for at least eighteen
months.
Some check in the speed at which
we are going is most desirable, and the
checking process has probably begun.
1t will but require a fair measure of
confidence and courage to prevent I'M
due retardment in our industries. Cap
ital cannot be forced into activity, but
1t can be forced out of activity. 1
have never seen the time when uni
versal sanity was more essential to
our well being"
One factor not considered in the
secretary's interview is important Just
now, and that is the natural cowardice
of capital. The man who has money
knows it is good, and while he may
regret losing interest on it or dividends
from an income investment, he prefers
to take the loss rather than risk losing
the principal and income, too. In a
time when a widespread strike makes
intelligent business transactions i'm
possible on a large scale, then men of
capital refuse absolutely to take any
chance. The effect is to reduce the
capital available for new undertakings
and compel liquidation by the tinor-
Gus. So far there has been nothing
abnormal in the course of the invest
ment markets, and indications warrant
the belief that liquidation has about
reached its maximum, so a reaction
upward may be expected, though not
yet on a large scale.