Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-12-05

llSe III me SloCk market ana conn
dence has been correspondingly i'm.
proved
Values Will Go Up
1t is quite evident that the corner
has now been turned, and that liqui.
dation in the main is complete Pos
sibly further weak spots may de.
velop later on, but these promise tC
be of minor Importance After the
enormous shrinkage and liquidation
Of the past few months, the market
is evidently on a safer and sounder
basis than it has been for a long
period, and as soon as the monetary
situation rights itself and confidence
is more fully restored, values should
go back to more normal level.
Market Recovery Slow
1t is not pretended that the mar
ket will promptly or wholly recover
from the terrific shock which 1t re-
ceived in October last. For some
time to come irregular markets
must be expected with more or less
depression and inertia. 1t must
also be remembered that there is
comparatively little money avail
able for investment. The country's
liquid capital has been practically
exhausted, SO that time will be re-
Iduired for the accumulation Of a
fresh supply; and in view OF the re-
dictionary tendencies which have de-
veloped in business, it is quite prob
able that a longer period than usual
will be required for saving purposes
Another factor which must not be
overlooked is that in spite of the
large volume of business profits are
showing a material shrinkage, ow-
ing to the immensely augmented
cost of doing business. This Is
strikingly illustrated in the current
returns of railroad earnings.
Less Net Railroad Earnings
In September the roads reporting
lohO"Cu q sam vi ONGI pIosuOD,VVU
in gross earnings, while net earn.
ings showed loss of $3,600,000
During the nine months ending Sep
TENDER there was an increase o.
1856, 900 in gross earnings ac
cOmpanied by an increase of only
SIS, 100000 in net earnings. Thi;
is an almost startling diminution o
railroad profits, especially when i
is considered that gross earnings ar,
making less and less satisfactor,
returns, while the increases of eX
penses are still abnormal. No doub
the railroads will soon be compelled
to make every possible economy II
operations. Many improvement
and extensions have already bee
postponed, and it is serious ques
tion in the minds of conservative
managers whether it will be eithe
possiblesor good policy to maintai
the high rates of dividends whicI
have recently been paid. especial
in view of the very low prices a
which many excellent stocks ar
selling.
Over Extended Credit the Cause.
Now that the panic is over and
sober view is taken of curren
events, the question is CONSTANT
asked: What caused the crash
The answer is necessarily Difficult
one, because the causes were man
3 and complex. The main reason
however, has been that of genera
i OVERRIDING. Credit was overextent
ed; speculation was excessive an
4 iill-advised; expansion of every sol
was being carried to excess by ovel
confidence, until finally the cour
try's floating capital was practical
exhausted through being turned to
rapidly from liquid into fixed form
\ We have only to glance at the d.
i mands upon new capital during til
past year or two to realize this fac
During the first ten months of II
current year, the amount of ne
securities authorized amounted
over $1.750, 900, 900, Of which
least $1,000, 600. 600 was actually /
sued. These figures simply inclut
! railroad and industrial securiti
1 and notes, the great bulk Of while
was offered previous TO septemb,
first The year 1906 was also pc
iod OF exceptionally heavy isses, Il
total then being $1,000. 600. 900 a
thorized and 100000. 900 issu,
within the twelve months.