Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-31
SURPLUS PROSPERITY
Banker Schiff Tells Parisians
We Have Too Much.
BUT NEED MORE LABOR
New York Financier Says Contem-
plated Work Will Be Checked.
SITUATION rs NOT SERIOUS
Conditions Due to the Present Excess
Of Prosperity Will Eventually
Right Themselves.
SITUATION IS NOT SERIOUS

PARIS, January 5.-Jacob H. Schif of
Kuhn, Loeb & Co., New York, who never
gives interviews for publication at home,
has given one to the New York cor
respondent of Paris paper, which pub
lished 1t yesterday. Mr.. Schin said:
1.-THE conditions in which we find our
selves at present appear much misunder-
stood, particularly in Europe. It is fact
that We are suffering from an excess of
prosperity which is simply overwhelming
us. Our industries cannot find labor with
which to master the orders pouring in
upon them; our railroads are in need Of
equipment and additional facilities to ham
die the immense business Of the country,
and the banks can only furnish part Of
the working capital with which to do the
unprecedented commerce which has de-
veloped.
Need Large Capital.
GAS consequence, the great railroad
corporations find themselves in need Of
large amounts Of capital to provide the
facilities which the business Of the country
demands and the managers of the railroads
have wanted to make certain of securing
the funds they need. Each of these boards
of managers appears at present to try to
get ahead of the others. In consequence
a scramble for corporate funds has arisen
which to some extent Is frightening money
lenders, more SO, probably, in Europe than
at home.
1.-The result of all this is likely to be that
corporate managers will only finish In the
way Of improvements what has already
been started. They will stop contemplated
improvements and additions which have
not yet been begun. This will tend to d.
minish after while the demand for ma
terial and labor, in consequence Of which
general business is likely to fall eH. When
this occurs, even to moderate extent,
money Is certain to become superabundant,
and investors will again compete one with
another for the replacement of their funds.
Situation Not Serious.
Corporations will then find no difficulty
to borrow upon advantageous terms for
the permanent funding Of the short-time
obligations they are at present putting out
to supply their needs.
LAS an outgrowth Of the prosperity
the country has now enjoyed for almost a
decade. some abuse in corporate manage
ment Is coming to the surface, but, except
for perhaps a too great aggregation Of
power in some instances, nothing really
serious appears to have happened. It is
very certain that public opinion, the great
corrector~ in the United States Of all evil,
has already asserted itself and is having
its proper effect upon all corporate man
agement.
ION the whole, the situation Is neither
rate of exchange. notwithstanding the
much easier condition Of the money mar
ket, remains considerably under the gold
shipping point furnishes the best proof
that our Indebtedness to Europe cannot
now be considerable. The country's Dor
rowings in Europe last year have to a
great extent been liquidated through the
shipment of commodities"