The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1908-04-13

tion is approaching a condition that
messages a panic are found in the
lack of a market for bonds showing
that the borrowing demand for money
is large enough TO make 1t the
more profitable form of employment
for funds. the difficulty in securing
time loans on reasonable terms and
finally high rates for call loans II
is equally true that the first signs of
an awakening of business enterprises
after period of depression are to be
found in the opposite of these con-
ditions We do not seem as yet to
have got ia renough away from the
effects of the panic of last year TO
i bring the first two of these conditions
i into play The demand for bonds is
not yet large enough to signify that
we are on the eve o fla rapid i'm
proyement and time loans are still
not easy to negotiate for long periods,
except on the very best class of
collateral. The banks are still close
| ly scrutinizing commercial papers
and generally adopting a conserva-
tive attitude toward borrowers.
The reason for this is found in
the severity of the panic of last year
which left behind II feeling OF dis
trust which has not yet entirely dis
appeared. although 1t is gradually
wearing away. The peculiar political
conditions have acted as de-
terrent on the return of confidence
for they have been expressed in the
form of legislation hostile TO the in
vestment interests and may be made
conspicuous in the approaching presi-
dental campaign.
Recent decisions fthe supreme
court have. however. done much to
overcome the vague fear that has so
long paralyzed the confidence OF large
investors. Ii is for this reason that
many are looking for that demand
for bonds and investment securities
which will be the forerunner of
sustained and rapid improvement in
Industrial conditions. The tendency
should also be toward more liberality
on the Part OF the banks and this will
lead TO more activity on the part of
the commercial community. The ease
in call loans is due to the desire OF
the DduhS W http iutii Nhfl'
they can he called IN promptly as
well as 10 the inactivity OF specula-
ton.
The low call loan rate may be
taken as the first indication of a re-
turn to normal conditions and II the
ease in time loans and the demand
for bonds will now manifest them
selves. then we may feel assured that
a long step has been taken toward a
return 10 prosperous business con
ditions How much a good market
for bonds means to the country may +
be seen from the fact that the rail F
ways consume about 60 per cent of +
the products of the iron and steel F
mills, and from the further fact that i
until the companies can sell bonds TO T
advantage their purchases will be on /
the smallest possible scale This I
carries with it the employment OF T
labor by the mills in manufacturing T
the products and by the railway in T
building and improving the railway. F
The depression has lasted long en- I
ough to have very appreciable effect I
on the buying power of vast army +
of unemployed as we'll as the /
partially employed and things will /
continue as they are until the great /
work OF developing the railway prop |
critics and other resources OF the +
country are taken hold of again /
which they cannot be until investors /
are taking hold of bonds.
We have hardly entered upon the f
stage of recovery although IL may be I
said that we have had slight re-
bound from the extreme of business |
II would seem from the |
nature of things that we had touched |
the bottom in the volume OF demand |
for commodities but there has been |
as yet only a faint improvement In |
the activity of enterprises which con-
sumo so large portion of the lead |
ing products. The progress we make |
from this will depend to a very large |
extent on the attitude assumed by |
the Washington administration and |
by the course of political campaigns. |
There is tendency in some quarters |
to wait until after the nomination but
of our people can be held |
in check for that length of time, for |
public sentiment is all powerful and |
that If the will OF the people Is mani |
tested plainly, public officials Will not |
long go contrary to It, The awaken |
ing seems to have been thoroughly |
effective in that the country sees the |
folly OF hasty and unreasonable |
legislation.