Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-11-29

AooN uASdppOdICu anu 10 nOW
way to sober recognition of the
fact that conditions have radically
changed, and that the sooner bust
ness begins to readjust itself
to these new conditions, the soon
er will 1t be started on the road to
normal stringency in money is still
the chief source of difficulty. Until
that abates 1t is idle to look for any
change for the better. Credit is
badly disorganized and unable to
take its part in the nations trans
actions. Consequently there is an
abnormal demand for currency Just
when the prevailing distrust keeps
alive the tendency to hoard. Not
until the premium on currency be-
gins to disappear; not until clearing
certificates begin to rise can any
genuine improvement be looked for.
1t is quite evident, now that the sit
uation has passed beyond the posi-
bility of relief by artificial meas
ures, that it must be allowed to work
out its own solution.
Inevitable Readiustment.
Events must take their natural
course. There is already a very large
increase in currency supply, and we
possess an enormous stock of gold,
which promises to be still further
increased by importations from
abroad. AS soon as b'Viness returns
to the normal or settles down to the
lower level we will surely be con-
frohted with an excessive imitation
of currency and all the unpleasant
consequences which that may in
volve. This, however, is a conting-
ency somewhat remote and can be
best dealt with when it arrives.
which may not be until the end of
winter or the arrival of spring.
During the interim we shall prob
ably be fully occupied with the in
evitable process of reimbursement
into which we have plunged with
unexpected force and suddenness.
Incidentally we may receive SOME
encouragement by the efforts of
congress to give us sound and
elastic currency system; for that is
sure to be burning and possibly
the leading question in the coming
season. Unfortunately the legisla-
tive outlook is confused by multi
plicity of propositions and by the
absence of any unity of purpose or
strong leadership; but something is
almost sure to be done to correct the
rigidity of our currency system,
which is now so seriously aggravat-
ing the financial situation.
Fortunately Good Demand.
The panicky feeling so prominent
in Walla Street two or three weeks
ago has now extended in modified
form into general business. Mer-
chants are often seriously inconven-
fenced by the contraction in credit
buyers seek to cancel orders and
values are frequently weakened in
consequence. Fortunately there are
few markets that are overstocked and
this prevents any such wholesale
slump in commodities as occurred in
securities. If any oversupply de-
velops, it will come from lessened
consumption; and as steps are, al
ready being taken to curtail produc-
ton in the iron, cotton and other
industries that danger is being re-
duced to a minimum. There is. little
doubt that when the monetary situa-
ton improves, the conditions of gem
eral business will be found fairly
satisfactory and sound 1t is of
course universally recognized that
costs of production are too high and
must be reduced. 1t is also recog-
nized that we are in for a period of
business depression of greater or less
extent. The heavy curtailment of
pig iron production, the partial clos
ing of factories and the discharge
of many employees, as well as the
postponement OF many enterprises
are all uncontrovertible evidences of
! reaction. But this can he endured
and the necessary readjustment eff
fected without great injury provided
it comes gradually and is generally
foreseen. 1t is the unexpected trou-
bells that do the most injury: those
which are anticipated can generally
/ be guarded against
High Rates Are Over.
/ On the Stock Exchange there was
continued depression owing chiefly
| to high rates for money and tofur-
: the~ liquidation Time money is eX-
lceedingly scarce, rates being from S
to II per cent and even higher Of
I course. the forced contraction ot
credit is accompanied by frequent
calling or shifting of loans, and this
in turn compels a steady stream o.
liquidation From the interior tho
demands for currency are still in
sistent in spite Of gold imports and
large additions TO the circulation
About s48,o0O,0oO of gold have thu
far been received ard the movement