New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-01-02


the most shrewd and far sighted observers pro-
lfess themselves as unable to predict. There are
those who argue that it cannot continue and
that tho pendulum must swing in the opposite
direction. But if the movement is not that of
E pendulum, bound To so backward when it
reaches the limit of advance but that of a
steady progress, no limit be set. The enor-
nous production of crops has been equaed by
TIE growth Of manufactures and the increase of
commerce. while wage earners have shared in
sn Unprecedented degree in the last twelve
months in the gains made by capital.
President Roosevelt pred;cated the continu-
snce 81 prosperity upon two thngs-the lack OF
reckless speculation and no disregard Of legiti-
mate business principles. Many weighty au-
thorities in the financial and commercial world
agree that the Industrial condition of this coun-
Try is in no immediate danger OF any change.
But Secretary Shaw has said that the country
should pray God TO save it from any increase of
prosperity. as We are growing more crops than
We can harvest and harvesting more than we
can haul To market.
The total crop output has never in the history
Of the country been exceeded. and one result
WIS that the railroads We're handicapped by in
ability TO handle it. The lack of elasticity in
the money market has called for currency re-
form as the best means of RELIEF The con-
gested condition of railroad traffic is held by
come keen observers to contain element OF
danger of paralysis to the commercial condition
OF the country. Another peril is found by some
observers in the wiping out of an immense
amount Of capital by the San Francisco dis
aster. The point at which speculation becomes
Teckless is when the bottom drops out of the
financial market and the sure thing becomes
dead loss" AS to the signs which in the
past have indicated that such a condition
was approaching, some have appeared in
The last year. but have failed to be fol-
owe by any disastrous results Among them
have been abnormally high money rates the
drawing Of gold from foreign reserve sources
OF supply. the raising of the bank rate at Euro
pean capitals, particularly by the Bank Of Eng
1and and deficiency in bank reserves. All these
indications OF danger have been successfully
zyeathered by the money markets of the world.
If any sudden cessation of INCREASED prosperity
BY shortage Of crops should come. there would
he ample opportunity for the railroads to catch
UP with transportation and make congestion
thing Of the past. and for the banks TO secure
command of the situation by securing reserves
OF capital Whether a condition would follow
which would cause general depression OF bust
ness and stagnation in the matter Of develop
nent Of new enterprises cannot be foretold.
The gold production of the year Is estimated
At $3C0O00,000. four times great quarter
o. a century ago. Thesassurance seems certain
;hat there viii be scarcity OF the precious
metal for the conduct Of the affairs of the world
aid that there is no danger in the immediate
future Of shortage Of gold which will revive
the movement for the use Of silver for world
currency. The stringency felt in the gold supply
At the financial centres Of the world is attrib-
1ted to the great demand caused in this country
By the unprecedented prosperity, 10 the con-
version Of the Brazilian debt to a gold basis and
the demand created in Egypt by the use of gold
in payment for labor TO the natives. who hoard
g. The earnings Of railroads have not fallen
of, despite the predictions that this result would
follow the passage of the Railroad Rate law.
fhich greatly enlarged the powers OF the Inter
state Commerce Commission and has much
changed the conditions under which special
rates and rebates are secured by favored
poratons The Pure Food law. which comes
into effect with this year. is expected to have a
marked influence upon the adulteration Of what
the people have to eat and to prevent the palm
ing off under genuine names of spurious articles.
The measure which wiz promote the OF
denatured alcohol In the arts is also expected to
% productive Of much good.
one Of the features Of the transportation in
tere~ts If the year has been the shortage
which prev ented as rapid handling Of crops
had been the case in the past For once tho
railroad companies We're caught mapping. It was
thought a. first that much of the difficulty was
due u the failure to return cars TO the roads
owning them after they had been loaded and
Gent AVA. but when the efforts 10, remedy this
were not followed by relief. ii became apparent
that there vas = genuine shortage. which could
b. met Only by the construction of new cars 10
meet the demand In the development of new
1airoad lines heretofore, it has always been
forne that sufficient rolling stock had been Sc
curcd IN advance 20 meet all requirements, but
IS - saw conditions reversed.
President Roosevelt set new precedent by
making an extended trip outside the limits of
The United States. 10 which heretofore base
less tradition has confined the incumbent OF the
executive Office during his term He had al
ready gone outside the three league limit CT
national control Of the salt seas on his trip by
batteship from New Orleans to the capes at
The mouth Of Chesapeake Bay, in 1893. Last
sear, jest after the election. lie sailed by var
ship FOR the Isthmus Of Panama TO make per
sonal inspection Of the work already under way
OF The construction % tho great i-teroceanlc
Canal. while constructiveIy on American soil
"hen or a vessel Of the navy and after he
handed the canal zone which belongs TO this
ecuiiiry. the President was foreign territory
az the cities % Panama and Colon. and at other
eAa to end of the route Of the canal and exani-
.i'ea H2rfu'y sii the details OF tho work. which
- 5000 10 be pushed forward with unexampled
.s3"lity- The results OF his three days inspec-
AYE o. tie AoYk With the conclusions deduced