Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1907-10-03


years. I ventured then to make the
prediction that if the Sherman law was
continued and left on the statute books,
and enforced, it would produce fnan-
cial disaster to the business of our
country. That, gentlemen, was only
twelve months ago, and yet I might
say today, L think, without egotism,
that they we're words of prophecy and
truth, as the times have demonstrated.
What is the condition in the country
today, and what has brought it about?
First of all, the great extravaganza Of
the people; next the reckless expendi-
lures of corporations, especially the
railroads, some Of which undertook to
rebuild and enlarge their lines without
any regard as to how the money was
to be provided.
"Years hence, when the history Of
the financing of railroads in the years
Of 1906 and 1907 shall be written up,
people will wonder if such things did
and could happen at this time-the
millions and millions of expenditures
which were ordered without any visi-
BILE means of providing for them. All
at once the blow came, and the iegisla-
the causes that aided in bringing the
collapse, and the first thing the gentle
men managing the great enterprises
knew they had no means of paying for
their expenditures. Their bonds were
not selling, their stock rights were not
taken, except at great sacrifice. Then
it was that they woke from their
dreams and found large sums due and
no money in the treasury. A schem 9
was devised which was possibly the
viz short-term notes were sold to the
public, mostly at one and two years,
and paying from five to twelve per
cent. interest. THIS large interest, OF
course, tempted the public who might
have purchased bonds, and the result
has been so far in 1907 we have had no
bond market. The governmental hys-
terra has been famed into a flame by
people who thereby found better ex-
cuse than any other for their mistakes,
Street began to liquidate there was No
one to buy, and no matter how good
and valuable some of the securities
were they were thrown over at a great
sacrifice. Added to this was the fact
that there was some doubt as to the
amount of crops we were going to har.
vest and the surplus We would have te
sell to foreign countries, and also the
fact that the world itself was short O.
ready money, and the different finan
ing to strengthen themselves, and this
initiated against our own success il
obtaining needed funds. Further, w,
were already beginning tG discuss thu
Presidential election which occurs mex
fall, and this is apt to deter men from
EN- mbarking in new enterprises. ALI o
these things would make one feel Iha
present business was surely doub tful
and that there was some alarm owe
the future. On the other hand, be
we have had and the pains that W.
have been through have helped GU
i system and that we are SO strong il
eur economic condition that we skal
avoid further liquidation and furthe
depression of business, and that W:
shall bave four or five more years @
good business where Labor will be wei
Il employed and our factories and indus
tries busy. Let us consider the condi
tions of business at the present time
The railroad earnings look well, tn
factories and other industries are wei
employed. There is possibly no bette
test of the business of the country thai
its clearing house reports. If you will
turn to the Financial Chronicle,
which always publishes on it's frs
page these financial clearings. you viii
find that for the month of August thers
is large decrease in clearings in New
York City. This is due undoubtedl!
to the liquidation and lack of invest
ment and speculation in Wall Street
but outside of New York City there il
q gain OF nearly per cent. over iSUO
and for the eight months of 1907 ther,
is gain of nearly 10 per cent. over tn.
com parative months of 1906.
''If you will look at the clearings a.
shown in the same seat for the year.
1904. 1905, 1906 and 1907, for the las
week Of August, you will find con
stant progression and increase in al
This shows that business is still i'm
proving in the country at large, ant
that the liquidation has not seriousl.
reached as yet the country outside o
it's financial center, and while ther