Omaha daily bee., 1908-10-25

goods, not because goods were not being
consumed as fast as ever. but because they
already owed the wholesalers and had a
big stock Of almost everything on hand;
that the railroads stopped repairing cars
and did without a few train crews is no
matter of mystery. with no merchandise to
haul into the country and no grain being
sold to be hauled to the primary markets
Of the world.
The currency starvation lasted only a
short time. The Omaha banks were the
most liberal in the west when it came to
resuming full payment OF COIN and cur
rency.
But during this period thousands OF peo-
pie got their first instruction in political
economy and banking and learned to sppre-
ciate how much the banks actually do for
a city or a country.
For the first time 1t began to appear
through the mist and mystery surrounding
a very simple banking system that de-
p~ositors really only loan their property to
the bank in specified amounts and 1t is
transferred from one to another on the
order of the customer by the bankers
bookkeeper. 1t did not take very long for
the impatient and impulsive westerner to
find that there was no use to hide money
AWAY III ~ rusty bNuNtHlDe III OEutE " OLE
act business, when the bankers furnished
the checks and hired the bookkeepers to
transfer money from one party to another.
and It became more apparent each day that
a check did not even need to move a dol
lar in money to do the business. Grad
ually it became known hat money was not
even needed when confronted by a con-
'tribution box or street car conductor, and
the Omaha & Council Bluffs street railway
sold tickets and took in exchange a check
with which they had q few more crooked
figures put on their account at the banks.
Incidentally the banks gained by the ex-
perience. People who had never stopped
to think Of 1t before realized what a great
thing It is to have a system of exchange,
practiced throughout the civilized world,
whereby individuals and nations may en-
ploy the banks as a medium for the transfer
Of commodities.
Lessons I'm Economics.
The farmers got a lesson as well as the
business men. The theorizers on monetary
questions got a Jolt from which they have
not recovered.
When the farmer could get no money for
his surplus pork and potatoes during the
ninety days following October 2S of last
year.. ne did not give it away or sell for
lower prices. but held on and bought soap
and sugar on credit or paid the grocer with
a check for which the grocer received a
brace of crooked figures at the bank.
Take away the silver and gold-it will
be nconvenient-but you cannot destroy our
national prosperity nor push down prices"
was the final verdict OF the farmers in the
west.
And tba business NOR and farmera
artisans and professional men; mechanics
and bankers saw the ruth and found the
basis for confidence in the future. They
proceeded and the condition in Omaha just
one year from the date when the paying
tellers pulled the curtains down and re-
ferred everyone to the Exchange" window,
proves the business men of the west were
right, and in the words Of one business
man: Nothing ever did Omaha as much
good as the panic"
What is the difference between business
conditions now and the conditions just one
year ago?
This question was put to Euclid Martin.
chairman of the Board Of Directors of
the Commercial club of Omaha and a large
dealer in farm implements and vehicles.
None" said Mr.. Martin. Except that
we are better off this year than we were
a year ago.
II do not believe there has been a gain
in the actual volume OF business shown
on the books OF mercantile houses, but no
less goods have been used and the year
has seen a great elimination of surplus
stocks.
All Cashed In.
Liquidation was a necessity-or seemed
to be a year ago. The so-called panic pro-
duced the results and we in the mercantile
business will close our years business with
decreased Indebtedness all along the line.
THE farmers have money-more than
they know what to do with. The country
merchants have been carrying many pros
porous farmers. When the financial trou-
BILE came along the wholesalers pushed the
retailers and the retailers in turn pushed
the consumers up a little. The retailers
have paid us. we have paid the manufac-
turers, and all have reduced surplus stocks.
I'm my business / might say that we had
so many buggies in our warehouse last
year we did not know where we were GO
ing to store sthem, We have a little more
than one-third as many this year. OF
course this made some factories quiet II
other dealers reduced their surplus stocks
in proportion, but Il was right to get the
surplus off our hands. With the retailers
some bought heavily last fall.
MANY dealers had a carload or two OF
wagon in their warehouses. The reason
we have sold just about the same amount
of goods is that we have been selling these
wagons for the overstocked retailer, some
times distributing wagons or vehicles from
the overstocked warehouse Of one retailer
to the warehouses of others.
But the buying has gone on just the
same and we are about to reach a poini
where dealers will have to stock up, and
We will be doing shortly a greater bushes:
than last year. l should say the futur,
looks very bright"
Besides this liquidation which sound bust
ness men OF Omaha ommen another fea
ture has marked the era of recovery II
the west. It was the continuation of buy
ing real estate. both city and country.
For eight years real estate values in west
ern states have been advancing. Regulsrl!
recurring good crops and unceasing emf
grafton from states further east have en-
HANGED the worth Of farms and incidental!
Of city property until handsome figures rep
resented the selling prices.
Real Estate Held Up.
When the ordeal OF one year ago had Z
be faced 1. was predicted that these value
would fall along with decreases in tn
prices OF some other forms OF investment.
Rut mt In Omaha. There was a furthe