East Oregonian : E.O. (Pendleton, OR) 1888-current, 1908-01-02
HENRY CLENS REVIEWS 1907 FINANCES

Henry Clews reviews the financia
conditions of the past year as fol-
lows:
The close Of the year finds us en-
ergetlcally struggling to emerge from
one of the most disastrous financial
panlcs In history Security values
have shrunken at least one-thlrd, and
in many cases more than one-half OF
the figures quoted year ago.
While the causes of the panic are
now generally understood, 1t may be
well in taking account Of the past IL
months to briefly cite the chief rea-
sons Among these causes were gem
eral overriding; over-eXtenslon of
credit; over speculation; over issue of
securities; great industrial expansion; ;
excessive underwriting schemes; ex-
cessive mining and real estate spec
ulation; earthquakes at home, and
abroad; japanese and South African
wars; general public extravaganza;
exhaustion Of floating capital; dis
trust induced by corporate misman-
tude of political leaders and legisla-
tive bodies at home, stimulating err
roneous prejudice against wealth.
These conditions, however are now
a matter of history and of little in
terest except for the lessons they
convey II is of first Importance to
recognize that a complete change Of
base has taken place; and that the
business world, whether II likes 1t or
not, must now be actively concerned
in adjusting itself to new conditions.
We have been suddenly precipitat-
ed from a high level to a lower, and
the sooner this vital change is ad-
mitted and conformed to, the prompt
er and sounder will be the resumption
OF business activity. Fortunately the
panic fell with greatest severity upon
those best able to wear It.; wealthy
institutions and the rich men being
the chief sufferers Upon the indus
trial, mercantile and laborlng classes
the shock has been much less severe;
a distinction that II is important to
bear in mind.
IT would be folly, however, to in
dulge In delusions as to the final ef-
fects of the panic In greater or less
degree the consequences will be dis
trihuted over all parts of the country. |
and II Is not unreasonable to be pre-
pared for at least year Of compare
tive depression. certainly In the east !
where commerce and industry are
most concentrated
There is reason to believe that the |
worst consequences Of the panic have
been limited to financial circles. But
to gain some idea OF the future in
this respect II is necessary to inquire
into the condition OF our industries.
First comes the American farmer,
who last year raised crops valued at
E,4O0,0 100000. much the highest
figure on record. His condition must
be highly satisfactory; for after sew
en- or eight years Of uninterrupted
prosperity he is now out OF debt and
so well situated financially as to be
comparatively Indifferent regarding
any business recession In the United
States.
Should he fail to secure good prices
at home he is almost certain of OBJ
tanning them abroad. When II is full
ly appreciated that according TO the
census about 35 per cent OF our work.
ing population is engaged In agrlcu-
ture. It will be readily recognized that
the farmer is still the backbone OF the
country in spite of the fact that the
growth OF agriculture is hardly keep
ing pace with population. and is still
producing less than one-half the
amount turned out by our manufac-
turers
Our growth In manufacturing is
enormous, and in 1907 our products
must have considerably exceeded s16,-
000.000,000 in value; but owing to
the extensive use of machinery only
about 25 per cent OF the country's
hand labor is thus employed The
manufacturing division of industry
will, however, feel the panic much
more severely than agriculture. Gem
eral retrenchment necessarily follow
ing financial saster will restrict de-
mand-not alone for luxurles-but
many stanle products and lower prices