The semi-weekly messenger., 1907-12-24

| pcnSatiOns-Farmer are i'm Good
Financial COndition-Wealth Pro-
| duCed by Farms Cannot be Obljter-
atcd by Any Stock Market Panic.
| New York, Dec 21-The only way
| to meet the present situation is 10 at
once recognize changes i'll fundamental
conditions which have taken place dur
ing the closing year. We have descend
ed with unpleasant violence from a1I
abnormal high level to an exceeding
~ low level and the succeeding process
OF adjustment is painful but inpera-
tive. The more promptly it is recog-
nIzed and the more promptly arrange
ments are made to go ahead on the mex
basis, the quicker will be the real re-
cOvery. While there are still many
unsettling elements IN the situation,
II Is satisfactory to observe suiIIc tcom-
pensations which may be too easily
lost sight of in the prevailing gloom.
It must not be forgotten that our farm
ers are in strong financiaI condition
the happy result of a series 4. Tery
profitable harveStS. This season il
sure to be a good one for all engag-
ed in agricultural pursuits. NJ oucn
situation existed in previous panics,
when our farmers suffered to a degree
which is now impossible This may be
class prosperity and, theref ore, less
desirable than universal prosperity,
but the financial strength OIL our agri-
culturists Is going to prove no mean
bulwark against the attacks of de-
preston.
Our farms produced $1,000, 900, 900 OF
wealth this year which cannot be OBJ
liberated by any stock market panic.
Another consideration which should
rot be overlooked and to which due
weight has not yet been given, is that
our mercantile and industrial condi-
tions are generally sound and free Of
the oversupply which characterized
the panic of 1898 Thus far there are
few signs of overproduction in the
textile field, the third largest division
of national industry The cotton mills
of the country are in an especially
sound condition financially; ana %
avoid the consequences OF IN overpro-
duction are generally follo~fng the
policy Of curtailment. In this direc
ton at least there are no signs or
weakness, and our mills are In ex-
cellent shape for meeting reaot1ur
The same can be said regarding the
food industry which ranks first IN
1t is almost impossible
to find any market in this division or
business oversupplied. In fact, in ali
Of the mercantile markets there is little
or no complaint of overproduction,
the only weakness being in Occaslnna:
cases OF unwise expansion and over
extension of credit. In such instances
the present condition OF the money
market may cause some embarTas5-
ment; especially should diminished
and lower prices, which
are inevitable. make any serious N
roads upon profits. We emerge from
the panic, therefore, with the mercan-
tile and industrial situation generailE
sound. and with the signs or reacuoh
chiefly limited to interests which nave
been excessively stimulated by extra
ordinary expenditures of the railroads
and unusual real estate activity. Thus
If is gradually being demonstrated that
,ur difficulties are largely financial;
hat to a very great extent this has
,een a Wall street panic and that there
are reasons for believing that its ef-
Fects will not be as widespread Is tnat
IF its predecessors in 1898 or 1903.
Such industrial OVERRIDING as Is ap-
narent has been chiefly confined TO in
terests connected with or dependent
upon the products of the mine. Great
development has occurred in the gem
eral industrial plant of the country
although apparently not yet in excess
of the demands Of rapidly growing
The greatest degree or
OVERRIDING outside of Wall stheet mas
been in copper MIN
ing. The enormous expenditures or
the railroads for improvements and
the rebuilding in many OF our cities
caused al extraordinary
exnansion in certain industries; and
the cessation of these enterprises
partial or complete-will necessarily
be severely felt in these branches OF