The Delta independent., 1908-08-07
BETTER TIMES AHEAD
Cause of the Recent Financial
Crisis.
PERIOD OF SHARP CONTRASTS
Great Activity and Deep Depression.
Difficulty In Obtaining Capital For
Railroads and Industrial Enterprises.


Cloud Of Uncertainty Passing Away.
The cloud of uncertainty which has
been hanging over the business ele-
ment of the United States is. in the
opinion of the British commercial agent
in this country passing away. In a
recent report to parliament on this sub
ject Mr.. Seymour Bell, the British
commercial agent in the United States,
says:
The year 1907 was one of sharp
contrasts in the United States. 1t was
year of great activity and deep de-
preston. During the earlier months
all industries were exceedingly busy
and mills were working at their utmost
capacity. Many untitled orders had
been carried over from the previous
year. and buyers We're experiencing
great difficulty in getting delivery OF
their goods. The railway lines were
congcstcd. wages were at their high
est, and the high price of commodities
raised the price of living to an extreme
point. 1t was recognized by all those
in a position 10 form an independent
opinion that this tremendous Industrial
activity could not last; that 1t was
merely n question of time before a
reaction void set in.
Money was becoming scarce, and
the railways and other corporations
We're encounterinG great difficulties in
obtaining the capital necessary TO car
ry ON the improvements and eNten-
slons which were in process OF being
carried out Speculation in mining and
real estate had been rife, and personal
extravaganza was at It's height This
all tended 10 place additional burdens
on the money supplies, which were
hardly adequate TO carry on the indus
tries OF the country. The railways
were among the earliest and greatest
sufferers from the financial stringency.
| They found 1t almost impossible 10 dis
pose Of securities al a reasonable price
and were forced 10 issue short time
notes at a comparatively high rate OF
interest TO enable them to continue
their developments. As wages were
high. owing 10 the scarcity of labor
and high prices were being paid for
materials. the net earnings OF the rail
ways were considerably reduced. al
though the gross earnings showed an
increase. This brought about lower
quotations for railway shares. and the
industrials followed the downward
path.
The situation was peculiar. on the
| one hand there were the manufacturers
with more orders than they could fill
and busy enlarging their plants. mer-
chants selling large quantities of goods
Mt satisfactory prices, labor In such
| demand that even with the addition OF
the 100000 mmlgrants il was neccs-
sary TO employ inefficient workers at
| good wages. on the other hand there
was dear money owing TO scarcity.
when. owing to failure in New
| York. light was thrown on the manage
ment OF some OF the large financial
concerns In the city. public confidence.
which had previously been undermined
by certain Investigations. gave way
completely, resulting in an acute mon
ey panic.
''rhe panic was entirely financial 1t
has. II is true. brought about wide
| spread suspension of trade and indus
try throughout the country. but as 1t
occurred at time when there was no
accumulation OF surplus gold there has
been no throwing on the market OF
merchandise at ruinous prices. the
usual accompaniment of Industrial pam
les. The manufacturers. on the con-
| trary. faced the inevitable and without
delay proceeded TO curtail the supply
and thus reduce such chances ns there
might have been of Cutting The mar
ket with unstable articles. Fortu-
nately for the country warning OF the
trouble was given carly. and IL was
possible 10 take steps in time TO pre-
| pare for Il.
"As TO the length of time the present
depression will last. 1t is difficult TO
form an opinion. II must not be for
gotten that the farmers. who form the
backbone of American prosperity. have
not been affected by the financial situ-
alton. Though the crops In 1907 fell
short In quantity ms compared with
1906, higher prices were obtained.
and the farmers received considerably
more money for their crops than in the
previous year. A country that pro
duccs crops valued at nearly f1,5o0.-
100000 is unlikely to suffer long from
Industrial stagnation. II represents too
large an amount to be held long unin-
vested. Farmers have had nine years
OF almost uninterrupted prosperity,
their buying power is high. and the
towns dependent upon them will re-
main prosperous.
''The farmers. who few years ago
owed money, now own money and
have an assured outlet for their prod.
nets, as there Is no oversupply
THE cloud OF uncertainty which has
been hanging over the country for so
long and gradually growing more,
threatening is now passing away. and
II may ho said that the worst OF the