Los Angeles herald., 1907-12-08
LARGE LOANS
A RE BEING
NEGOTIATED
THIS INDICATES AN EASIER
MONEY MARKET
REAL ESTATE TRANSFERS ARE
INCREASING
As Reform Movement Accompllshes
Its Mission Sound Business Policy
VIII Bring More Firmly Es-
tablished Prosperity
NY G. II. DAVIS


Evervwhere there are indications OF
return to normal conditions. BY norrnai
conditions is not meant the tremendous
commercial and industrial movement OF
the past two years. That was decidediy
exceptional, and If 1t were to be 1uogeo
by the results recently seen and expert
enced II could not be much wanted again.
BY normal conditions is meant those con-
ditions which are justified by sound bus
mess policy.
Sanity is evidenced in business by level
headedness by meeting present demands
and by providing conservativoiJ for u
ture demands and by keeping an eye on
available cash and not over-extendins
credit to the breaking point.
The whirling rate at which prosperity
sent MS turned our heads and we lost our
sense of steadiness and took tumble.
We're nursing the bruises now.
There will be isolated concerns here ana
there which will not have enough strength
left after the storm to Withstand the little
gusts common at any time In the financial
world, but there is no reason to expect
ANYTHING like a repetition of 1893 in the
way of failures. 1893 is the year oftenest
spoken Of probably because 1t is freshest
in the memory Of the present generation,
but students of financial history are point :
ing to the panic of 1857 as the one winch
bears the greatest similarity. =,
A writer in Moodys Magazine for April
foreshadowed the recent weeks IN
description of conditions prevailing during
hot a
gold. abundant credit outrunning the gold
reserves, high prices, prosperity, heaVy'
production of goods, and in the end
crash" Change the date and you nave
the parallel exact.
Reform Must Continue
And until the reform movement has ac-
comnlished its mission these unhappy re-
suits will follow Economic conditions
and the principles of business conduct on
the mart of those in the possession Oh
great power must be changed, even at
great cost The chastsement OF con-
victed criminal is not stopped because the
duty is unpleasant to the official. society
has permitted it's organization to be ex-
nloited for the benefit of a comparatively
few individuals, and as long as the latter
are perrnitted to control public francnlses
and to secure special privileges with I'M
punity so long will booms develop and
ranics surely follow.
1t is source of no little pleasure to
find evidences of the gradual return
movement OF the pendulum of confidence
and business activity in Los Angeles
Four weeks ago a feeling of dependency
was rather prevalent and dire prophecies
of collapse in local values were made, put
in spite of it all the proof is still want
ing Investors are still holding on 10
nroperty in a way that is a compliment
TO the strength of our citizenship. LooA
over the real estate columns today and
YOU will find realty selling at stable val
ues and buyers placing their money tor
future returns with as much assurance
as ever. If you hear of many sacrifices
being made you must have exceptional
opportunities for the requirement of
news. opportunities not vouchsafed to the
average newsgatherer Don't let very
MANY of these opportunities pass by. If
Won don't care to seize them there are
nlenty OF persons who will gladly grant
vou the usual commission for your SER
vices.
The tabuIated statement of the number
of transfers in Los Angeles county for
November, which is given elsewhere in
this section, shows a falling off of 1893,
vet it is probably safe presumption to
saw that nine persons ort of ten would
have said the loss was much greater.
Such a guess would quite likely not have
been thought far from the mark. Fear
is often one of the most fruitful sources
of exaggeration. A still better aspect is
given the matter by comparing the num-
her of transfers &c the last week of Oc-
tober and those of the three first days of
last week, which were 244 and 30S respect
lively. If the rest of the week ran steady
with what is here given the increase is
s.11f Of hn
since gradual relief began.
Money Loosens
That relief has really set in is further
evidenced by the statement made by the
official head of one of the most promi-
nent abstract companies Thursday.
When large loans are made, said the gen
tleman referred to, it is pretty sure proof
that things are righting themselves.
Men hold to their money with a death
grip when danger threatens. And that
such condition is now rapidly becoming
q thing of the past may be inferred from
the fact that several large loans are be-
ing negotiated at present Nor are the
amounts involved small. One runs into
the hundreds of thousands and two others
include six figures each. If an appalling
depression faced Los Angeles keen
sighted business men would not place
good sized fortunes in jeopardy
The truth of the matter is 1t Is ex-
--.saAdirSly difficult 10 conceive of a seri-
Gus and long continued depression when
the demands Of the world are SO tremen-
dous end the capacity to meet them is
equally as great To think otherwise is
almost to confess to oneself loss of
confidence n the ultimate destiny of his
country. To plead poverty in land of
plenty ould be a peculiar experience
indeed. ''Ihe stupendous sum of over
s26. .0OO 900, 0OO' is the value of "the pro-
ducts of the United States this year."
stated ex-Secretary of the Treasury Shaw
a few weeks ago. With so great wealth