Los Angeles herald., 1907-11-10

VALUES WILL
HOLDS7EADY
HISTORY is NOT EXPECTED TO
REPEAT 'ss
INVESTMENT WILL BE AIM OF
BUYERS
Period Of Enforced Rest Will Afford
an overtaxed Business System
an Opportunity for
Recuperation
NY G. n. DAVIS


financial situation philosophically. There
is an air of assurance that the acute
stage Of the furry is past and that ex-
listing conditions are only temporary.
Nowhere is to be found a feeling that
'93 will be repeated. The country's con-
ditions are quite different today than
they were then. 1t is hard to believe
that a panic can occur when all those
things which go to make for prosperity
are present and there are no reasons
for their undermining. High prices and
huge volume of business cannot by any
means be made to spell panic. AT least
in 's3 no spelling book taught that such
a combination Of letters produced such
a word.
II there were failure Of crops or If
railroads, which are the great barometer
Of business conditions today, were going
into the hands of receivers. or If such
an institution as Westinghouse were
embarrassed through lack Of demand for
its manufactured products, then we
might not feel SO sure of the end.
But as a matter of fact it is common
knowledge that this is not the case. The
westinghouse concern is in temporary
difficulties because the demand for its
expansion has overtaxed the supply of
floating cash available for the purpose.
It has been estimated that the country
has been doing an amount of business
about per cent in excess Of its present
volume OF money.
That the prices of the necessities of life
are fancy needs no further proof than is
to be found in every households grocery
bills, and last weeks government report
indicates no decreased market activity so
far as internal commerce movements are
concerned. Grain receipts show large
percentage of gain over a year ago ami
the railroads are physically unable to
move the accumulations. AS result the
bulging granaries of the northwest have
their doors locked in many cases.
Recovery Requires Time
There should, however, be no surprise
when reports of a few failures through
out the country are received. Though the
hysteria has subsidized, 1t should be re-
membered that it's effects will be felt in
the financial system at distant points
from the central disturbance in Wall
street some time after its occurrence. In
the nature of the case some institutions
will be found unprepared for the emer-
gency.
Furthen than that immediate recov-
cry should not be expected. Recupera-
tion will be slow and accompanied by
irregularity. Regulation of over
extended credit, of excessive produc-
tion of securities and of mismanage-
ment of great corporate interests Will
not be accomplished in a night and a
day. The important point to bear in
mind is that confidence is gradually
being res tored in the east and will in
time reach westward and that any at
tempt on the part of individuals 70
hoard away unnecessary money so
much required in business channels now
and thus increase the feeling of uneasi-
ness is unwise and to be deplored.
With these conditions prevailing the
confidence the citizens of Los Angeles
have in the future of their city and of
Southern California is not unjustif1ed.
To put 1t in another way, the unparal-
Ieled resources and prosperity of the
southwest are fortified and will be pre-
served by sound conditions in the rest
of the country. Any check that may
come will be only temporary. Out of
the rearrangement now being made on
higher moral lines will come a new
order of things working for another
There is no denying that the volume
of realty transactions will be lessened
for a short time to come, but this will
afford a period of rest for recuperation
and will enable spectators and investors
TO take bearings afresh for renewed ac-
tivity under more normal conditions.
Values Will Hold
There is no reason to expect deprecia-
fnv1 nf xya1 in eli tad
property, vacant lots lying in the more
distant districts or any kind of property
which is SO located as not to be classed
as income property may experience some
decline, for buyers will seek only those
kinds which offer assured returns from
the investments For this reason down.
town business property will be consid-
cred as good as it ever was and the
same thing will be true of residence
property advantageously situated.
Country property will likewise maintain
itself. That which is productive has been
proved to be so decidedly worth while that
those who are casting about for some-
thing in which to place surplus funds
will not hesitate to take advantage of
such opportunities as are offered. The
unimproved which lies in the tested belts
will also be attractive to the person
with an eye on the future In recent
months the number of agents who de-
vote a part or all of their attention to
ranches has increased more than 80 per
cent and where there was in a given
time year ago one column of adver-
tising covering farm lands there are to-
day at least three columns. Another
creditable feature in this connection, in
that 1t shows the confidence of Southern
Californians in their own section, is the
fact that they constitute the majority of
buyers of country property. This indi-
Gates, not speculation. but permanent
investment. for they know whereof they
buy, and permanent investments, total
ing as great as they do in this favored
country, indicate caution on the part of
the purchasing public, insure stability of
prices and are a prophecy of future
prosperity.
NORTHUMBERLAND orDrr