The Caucasian. (Shreveport, La.) 1900-192?, 1907-01-06
NOTES OF WARNING
One Is Sounded by Stuyvesant Fish, a
Noted American Financier, and the
Other by NJ. Neynarch of Paris.
The Indications Outlined by the
Journal deS Debats.

, he Indications Outlined by tlt
Journal DIES DebatS
A great tinancier, Mr.. Stuyvesan
Fish, has sounded a note Of warning H,
is being ridicu.ed by some of the specu.
lative class. New York is the axis, as il
were. upon Which the impending storm
Irevolves. The United States has grad
ually been brought into the near vortex
of the catastrophe which may be checked
and relieved with prudence and conserv-
atism. Speculation has been reckless
In the crash will be involved other coun-
tries. However, should the worst come
the South may be prepared to stand the
y. shock and then emerge from the disaster
with few in uries In the North, and
especially in New York, fortunes may be
wiped away as by wave of the hand
The best efforts of the United States
government are being directed to avert
and delay the storm.
/ Another authority, NJ. Neymarch. a
French economist, recently sounded in
the Paris Renter, the warning OF finan-
cial trouble The Journal DIES Debats
has given expression to the belief that
Mr. Neymarch is right. The indications
which precede this financial storm are
indicated by the Journal des Debats in
this presentation:
/. Rise in prices. first of particular
commodities then. to less degree, ir1>all
merchandise, and, finally, in uninproved
property and real estate generally
2. Increased activity in existing enter
prises, formation of new companies, not
ably those which provide for increase of
production in manufacture; by this float
ing capital becomes fixed.
3. Active demand for money at a ris-
ing rate.
4. Demand for labor at rising wages,
5. Extravaganza and waste in public
and private expenditure.
f. Development of speculative mania
accompanied by dishonest methods in
business and by credulity among invest
ing capitalists.
7. Great expansion of bank loans, Sc
we're money squeezes: strikes for still
higher wages by laborers.
The speculative bubble has reached
the bursting stage. yet few of the people
and the get-rich-quick have time to heed
the warning. The Picayune comment
ing on this situation says:
1T is impossible to ignore the fact that
speculation has been carried far beyond
the limits of reasonable business require
ments, and that much of the expansion
is mere unwarranted inf1ation-a bubble
that has only been prevented from burst
ing by the pouring out of money from
the national treasury
But the government millions have on
y served to postpone catastrophe
which can only be finally prevented by a J
general and most carefully conducted.I
process of steady, but not spasmodic or
violent, liquidation. 1t is not that any
sudden and serious catastrophe will be |
permitted to occur before the presiden- |
tial election of 1908. Any such financial
crash previous to that time would over
whelm the Republican party with disas-
ter and insure its defeat if not its de
struction 1t would overthrow all party |
discipline on both sides, and the great |
body of the people would rush in an
avalanche to seek relief from the gen
eral havoc of vast financial crash and |
industrial paralysis in the widest radi-
calism.
Should Democratic victory follow
the election of 1908, it is more than
likely that the storm which will have
been postponed by the most desperate
until after the election, will
then be turned loose on the Democratic
administration. as was done when Mr.
Cleveland was elected to his second
term to succeed General Harrisons Re
publican reign Cleveland's first term
closed leaving the. country in prosper
Gus condition, with plenty of money in
the treasury vaults Four years of Re
publican domination under Harrison,
by extreme prodigality on
the part of the government and wild
speculation on the part of the stock job
bers and the people generally. created
The conditions for a storm that was
xarded off until the Republican admin
stration could get out, and SO it fell
upon the second Cleveland administra-
ion. bringing down upon him all the
popular Indignation and dentmciation
hat properly belonged to the Harrison
erm. II