Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1907-10-26
STATUS OF The COPPER SITUATION
World Authority Says Copper Is Fundamentally Sound and
Needed in Twentieth Century Civilization


American railway lines during the past
few years offers an instance of what has
been donein most other industrial fields,
and in most other countries. Our great
railroads have not hesitated TO lay out
plans calling for the Investment for
hundreds Of millions of dollars Ia
most cases these plans are thoroughly
sound, viewed from any standpoint ex-
cept that of finance Such investments,
in most cases, will add greatly to the
earning power of the roads, and the out
come will fully justify the plans, if the
money can be obtained.
The process of nature BY which water
is saporized and lifted from the surface
of The sea and inland waters, to be re-
precipitated from the clouds, and finally
wend its way again to the sea, is con
| tinuous, but only a given amount Of
water is undergoing the process at one
time. Similarly, the process by which
money is returned from production
WeSCSy lttibOl diiNl lliN GSNiltSlil, - No4iz
tinuous, but only given amount Of
money is i'll the fluid state al one time,
and its ultimate destination is the sea OF
! fixed investment, to again give off the
golden vapors that will be appropriated
and used once more.
BY reason of the stimulus given bus
;racc aud ;uyact,,artc tJ,ro,,s,1, ,te;,,.,
prices, caused by increased gold supply,
the entire world has increased its none
tary requirements to the point Of tenn
porary exhaustion. With perhaps three
| billions of dollars of new money avail
able yearly for investment, the demands
of the world, at the beginning of 1907
were at the rate of nearly or quite four
billions of dollars for the year, not in
Guiding the visionary schemes by which
at least two hundred and fifty millions
of dollars, and probably even larger
sum are diverted yearly from legitimate
channels, 10 be lost i'll the arid sands of
! illusionary enterprises or diverted into
the private canals of the predatory.
AS the great Micawber sagely observed,
an annual income of twenty pounds,
with expenditures of nineteen pounds
sixpence, means comfort and solvency,
while a yearly outgo of twenty pounds
sixpence means ultimate bankruptcy
A nation is all aggregation of individuals
and fle world IS merely an aggregate Of
nations The individual, corporation
nation or world that spends more than
ii receives, must suffer stringencv or
bankruptcy, and the individual OF ma
ton that anticipates its income, beyond
its reasonable borrowing power, must,
whether or no, reform and pay its debts
or become bankrupt. =
The entire world has been investing
beyond its income. Many OF these in
vestments are fundamentally sound, but
the man who with a capital of ten
thousand dollars attempts to buy fifty
thousand dollars worth of property,
secures merely an equity in the prop
erty SO bought, and this equity niay be
wiped out by financial stringency There
is limit to the borrowing power Of the
world, just as certainly as there is a
limit to the borrowing power of any in
dividual, and this limit seems TO have
been reached III the case Of the world
III 1907 / do not look for general
panic, but America and Europe, as well
must check our too rapid progress. A
year or two or three, will be required to
regulate the over-strained world finan-
ces, but there should be nothing in the
nature of general panic. y'he enter
prises that have been badly financed
must go to the wall, i'll MANY cases
while others, fundamentally sound, but
borrowers to a larger extent than war
ranted, must check expenditures fol
capital account, and accumulate reserve.
and financial strength and reputation
, from net earnings.
III the past the iron trade was calleC
, the barometer of business. This wa,
. due mainly to the fact that the railroads
. constituted one of the largest consumirt
interests III the iron and steel trades
+ and the American railroads, often robbed
| frequently muddled i'll management
, and habitually hard up, were unable /
dull times TO buy rails for replacenentt
/ and extensions, but with improvement
( in business, rushed into the market Will
, orders for new rails, causing rising
| prices and boom in the iron trade
, The American railroads are now finance,
: along much sounder lines; AMI while
their rail purchases are much greatel
in good times than in dull seasons, tier,
is no such disparity i'll orders between
pnod and bad Nears as ,Nas Tic cas-,