Durango semi-weekly herald., 1907-06-27
TRYING TO CREATE A BUSINESS
SCARE.

TRYING TO CREATE A BUSINESS
SCARE.
o.
These are the days when the alarm
lists may be expected to be busy. They
wefe busy yesterday In New York and
In London. Several things gave them
q chance to get hearing. The larg-
est Of these was the Japanese trouble.
which sent Japanese and American
securities down in the London market,
but the former fell farther than the
latter. This issue had less effect in
New York than It had In London.
Americans have persisted in thinking
that there is nothing serious in the
disagreement In this attitude they
are Influenced by the government at
Warrington. which has refused all
along to consider that the dispute car
ried any potent OF danger for us.
Another influence which was affected
stocks adversely was the gold exporta-
tion, but naturally this factor operates
on this side OF the water only. In
London and Paris this gold exporta-
ton from the United States would
have bracing tendency in the mar
kets. The failure Of the steel concern
of MillIken Brothers in New York
had a somewhat depressing effect yes
terday on the market, and so did the
rather unfavorable crop reports. 1t
thus happened that several adverse in
fnences have Just converged to give
the alarmists an opportunity to make
themselves heard.
Yet the general business situation
aside from the crop outlook, is favor
able. II our government is correct In
its Interpretation OF the Japanese sit
uation, there Is nothing to fear from
that source. The report that the gov
ernment Is sending large consign-
ments of coal by rail to the Pacific
coast shows that 1t is taking some
precautions against trouble, II any
comes. The market, however. refuses
to consider the crop outlook quite as
dark as It may seem on the face of the
governments figures. Both Chicago
and New York have hope that favor
able weather between this time and
the gathering Of the crops may make
the yield larger than has been ex
pected. Undoubtedly the crops form
& large element in the country's as
sets. For 1906 the farm products ol
all sorts amounted to very nearly 81,
600, 900 900, which was gain ol
$500. 100000 over 1906, 100000 O0(
over 1904. and 5000, 900, 900 over 1903
There has been a constant and rapid
increase in the country's yield from It's
farms for years past, and 1t is posi-
Bile. though not probable. that 1907
will show that the tendency is still
upward. II there should be a check
this year 1t will undoubtedly be only
temporary. az the volume OF the coun
try's agricultural activities is con
stantly broadening, and science Is
making farms more and more pro
ductive per acre.
Incited by some OF the unfavorable
factors. Stuyvesant Fish has Just been
saying. in an address TO the grad
uating class In applied science of Co
lumbia university. New York. that
railroad building would be checked
hereafter. and that the development OF
the west and south would be retarded
as . consequence. The thing which
he says will have most effect In bring
ing this setback is the power given
TO the interstate commerce commits.
sion. In the act Of 1906, to fix rail
way rates. This power was supposed
to be given to the commission In the
act Of 1887. OF which the legislation OF
1906 was amendatory, and no ad
verse effect was seen at that time
subsequently the courts decided
against the use OF this power by the
commission. The power was granted
specifically by the legislation of 1906,
yet no bad consequences can be traced
to 1t. The railways are doing more
business than they did year ago.
Their gross earnings the larger than
they were then. There has been
. falling of in net earnings. but this
has becn due to the heavy increase in
operating expenses through the ad.
vances in wages and In the cost OF
materials. So far as the evidence
shows thus far. the falling of In fall.
way construction In 1907 will be small.
and the shrinkage in the expenditure
for rolling stock and improvements,
II any shrinkage at all Is seen when
the accounts are made up at the end
or the year. will be very slight. Gold
expectation. which figured with some
prominence in last weeks financial
developments. promises to drop close
to the vanishing point in the present
week. and much OF the expectation
was due to cheap money in this coun.
try. condition which ought to please
the railway chiefs. Making all rea.
sonable allowances for any shrinkage
I'M farm products which maye take
place. the aggregate OF the country IS
activities will undoubtedly be greater
for 1907 than 1t was for 1906 or any
preceding year.-Globe Democrat.