The semi-weekly messenger., 1907-11-29
uG WILMINGTON. N. c.
GETTING BACK TO SOLID FOUN.
DATION.

In Henry Clews' weekly financial (
letter of the 23rd instant, we find |
the following paragraph on the pres
ent conditions and the future out
look, which we think are sane and !
sound. There can be no doubt that |
most of the present strained condi-
ton is due to what some have term !
ed, "too great prosperity" We
think a better term would be a |
false idea of prosperity and the con-
sequent straining of credit and soar
ing of prices for fictitious reasons.
Things have got to sift down and es-
tablish new basis for business of
all kinds. There has been an over
strain of business of all kinds. The
people have been going too. fast.
They have looked too much to the
future for keeping up the pace at
which they were going and for sup
plying the means for keeping the
thing going in finances and in all
classes of industrial pursuits and
have paid too little attention to real
conditions of today. They have not
sufficiently examined into the ability
of the commercial and financial con-
dition of the country to stand the
heavy strain put upon it to be ad-
justed in the future. Prosperity was
overdone, in fact; and it could not
stand the strain put upon it to up
hold what was supposed to be the
wonderful progress and increased
business of the future.
The superstructure was too heavy
for the foundation. There is moth
e ing wrong with the foundation. 1t
is as solid as it ever was, but the
public has found that the superstruc-
ture must be brought within limits
to harmonize with the other.
This contraction upsets business
temporarily and creates disorder in
the business world, but it is only
temporary, and when the two parts
have been properly adjusted toward
each other the whole country will
be in better condition than it was
before this work of readjustment
was begun.
The possibilities of this country
are immense and they have not by
any means yet reached their limit,
but they cannot be stretched in a
day to the point of supporting an
infinite amount of credit business.
The trouble is that we have been
attempting to do this and the people
have come suddenly to recognition
of the fact that it is an impossible
ity, and sharp contraction has been
the natural result, which has caused
undue alarm to many, and caused
the results of the contraction to be
more far-reaching and to affect legit-
innate business to a far greater ex-
tent than there was any necessity.
The frightened people and not the
financial conditions caused the mon.
ey panic we have had. AS soon
as the people get over their scare
business will become normal and the
be better than it was when the scare
first took hold of the people.
While in this recent financia
furry many persons have lost heavy
it will be found in the end that the
country as a whole has benefited
by it.
Mr.. Henry Clews thinks the re
adjustment can be effected withou
great injury. 1t must come gradu
ally and be foreseen. He says o
present conditions:
The panicky feeling so prominent II
Wall street two or three weeks ag'
has now extended in modified form
into general business. Merchants ar
often seriously inconvenienced by tn
contraction in credit, buyers seek t
cancel orders and values are frequent
" weakened in consequence. Fortu
natelv there are few markets that ar
overstocked and this prevents an
such wholesale slump in commoditie
as occurred in securities. There IS lit
tie doubt that when the monetar
situation improves, the conditions o
general business Will be found falrl
satisfactory and sound. It is of cours
universally recognized that costs o
production are too high and must b
reduced It is ALSO recognized that W
are in for a period of business depres
sion ofsgreater or less extent Tn
heavy curtailment of pig iron produc
ton, the partial closing OF factories
and the discharge of many employees
as we'll as the postpOnement OF man
enterprises. are all uncontroVertol
evidences of reaction. But this can b
endured and the necessary readJust
ment effected without great injury pro
vided it comes gradually and is gen
orally foreseen. It is the unexpecte
troubles that do the most injury; thos