The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1908-08-14
Panic Far Behind and Prospects
Very Bright For Sure;
Improvements,
Grain Outlook Is Satisfactory;
Many Hope Conditions;
More Cash.
lBY HENRY CLEWS.l

New York, Aug. S<-Ihe stock mar
ket has been very strong and more
active. Under the influence of easy
money, improving business prospects,
Il good harvest and powerful inside
support prices have climbed to still
higher level. The advance has proba-
bly, been more, than conditions really
warranted; but as repeatedly Stated in
these advices the market is in control
OF combination of unusually power
fnl operators, and as their interests
are best served by an advancing mar
ket it is but natural that they use
their power to the utmost limit. Let MS
which the rise has been based, for
the most skil!ful manipulation could
not have engineered rise such as
has taken place since last November
unless there was some good founda-
ton.
Panic Is Far Behind
I'm the first place the panic is far
behind us. Prices then fell much be-
low intrinsic values because of extreme
decentralization, and unless history fails
to repeat itself they are likely to
react above intrinsic values, because
the pendulum invariably swings back
violently before resuming its normal
movements to and fro. Now that the
storm is over we find the financial
atmosphere much clarified. While the
sock\of panic caused temporary paraly
sis in business, recovery quickly fol-
lowed. There were no signs of general
overproducticn, such as prolonged the
depression which followed the panic Of
1898; and in many lines of merchant
disc there was a positive scarcity par.
ticulafly i'm agricultural products, which
has had much to do with maintaining
the present high cost of living. The
big trade combinations have also had
a share in preventing overproduction
by the rigorous shut downs which
many of them enforced. This scarcity
of products, or lessened production can
hardly be considered blessing, for.
abundance is usually better than scar,
IVY 40 S5'ii'iai o'o ~ mas
had much to do with the steadying
of values during the past six months.
One good result arising from the panic
was the effectual stoppage which it en-
forced upon unsound industrial and
financial schemes.
Credit System Had Been Strained.
Our credit system had been strained
to the breaking point by the flood of
hotations; and this state of high ten
sion was chiefly responsible for the
panic because of inability to with
stand shock This has all been chang
ed New schemes are promptly turned
down unless particularly meritorious;
our bankers are exceedingly conserva-
tive; weak concerns have been obliged
to liquidatc; credit has been greatly
strengthened and while good borrow
ers secure all reasonable accommodate
ton bankers. are pursuing a policy of
great care in the granting of credit.
Another factor Nof\ more Importance
than is yet appreciated is the great
relief which has been lately afforded
to institutions and individuals by the
rise in stocks. 1t is well known that
some of these would have been forced
into bankruptcy had it not been for
the recent favorable turn in events.
As it is many concerns have been en-
abled to meet their obligations with
unexpected promptness; and it goes
without saying that their resumption
or saving from failure will be bene-
fetal to the financial community. Ia
short the shousecleaning process which
began last October has been thorough