Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1908-12-19
EDITORIAL COMMENT.
HE RETURN OF BUSINESS CONFIDENCE.

HE RETURN OF BUSINESS CONFIDENCE.
Although we hear many local complaints to the effect that M.
Taft has not Is yet brought back prosperity" the student of eco
nomicg a plainly see that good times" m returning is rapidly
is possible. OF course those people who expect to find gold pieces
hanging on bushes. positions at fabulous salaries to be had anywhere
~ anvbodv . the asking and everybody who has money willing
to throw it at any proposition brought to their attention and without
asking questions, will be disappointed. The recent panic was in part
~ resa, - TOO mucb confidence OF the part of the investing pub
lie, which had made such returns from the greater part of its in
vestments that it lost caution, and there became the easy prey OF
wildcat and visionary schemes. The first moves in the restoration of
good times" must be made by the big fellows, and in big ways
and they are being made. Later, the small investors viii follow suit,
for there is plenty of money in the country, only the mn of small
means are waiting for the big corporations and interests to show
them the way, then their money will be forthcoming, first following
the lines mapped out by the big interests, and later in investments
in concerns in which they will have a more intimate and personal
connectou-control Of which will be in the hands OF groups u
small investors.
Mr.. Hartman says that idle money is a bad a condition for the
country as idle men, and he is right Idle money means idle men.
When the money is actively employed there are few idle men in the
United States. There are indications that the money is getting
into trade channels with some rapidny. me corporations lormeu
throughout the country in November exceeded, in capitalization,
those formed in the month Of June. and they are far ahead of those
of any month of 1908. except of November, 1907. Taking the east
ern states where the organization of new business concerns is
usually most active, the capitalization of concerns having more than
$1OO 900 of a basis is over 100000 900 in excess of that of the
same month last year. The showing for November is giving much
Encouragement to fnancters and business men in general. If Mr.
Hartman had consulted the figures of the new Investments in the
month Just ended he would have found much to give him encourage
ment.
The United states steel corporation has Just placed an order for
sixty locomotives, which is the largest single order given by it in
two years. The Vanderbilt railway lines have ordered 1900 steel
cars, which is said to be only the beginning of much larger improve
ments in that field which are contemplated. Orders for $150O,000
of new equipment was issued by the Cotton Belt line a few days ago.
AS Mr.. Hartman, Mr.. Hill and some of the other big railway men
we're complaining. a year and a half ago, that money was so scarce
and high that they could borrow none with which to make needed
improvements. they ought to be pleased to see it plentiful and cheap
now. There is no doubt that it is plentiful, but the volume Of the
unemployed cash is rapidly diminishing Many Of the big corpora
tions ara taking dvantaga NJ tfsf fact ~ Law in snpnlies for new
projects and for the extension of their old enterprises. 1t would
seem that this would be a wise policy for those railway magnates at
this time. Probably they are doing this very thing. The tendency
of money, owing to the business improvement, will be to go up Be
fore 1909 closes we may be hearing some of the old plants from the
railway interests that they can not get cash enough to make their
needed extensions. This was the explanation which they gave during
the days of the freight congestion Immediately previous to the bust
ness setback in the closing weeks of 1907. BY laying in a stock
now they will be masters of the situation twelve months hence when
the trade expansion is under full swing.
If M. Hartman takes a look over the business field he will see
many evidences that idle money and idle men will soon be as scarce
as they were in the old flush times which came to a temporary halt
thirteen months ago. Railway earnings which will naturally come
within this masnates immediate field of vision, are far above those OF
December. 1907. SO are bank clearings. 1t is, of course, dangerous
to base any sweeping genera!Eations on these particular gains. We
are now comparing with the acute period of the industrial depres
sion. Bat the eearings these days not only exceed those of the cor
responding time in 1907, but some weeks they beat all the records
The imports and exports arr both gaining. This is a sign which is
significant The expansion in imports means that the counuys
scare has ended, and that it is resuming the old business confidence
which sent the volume of the countrys activities in 1906 and the
first half of 1907 up to figures never previously touched. Moreover,
business is on a safer basis, a is shown by the decrease in the num-
' Der of commercial failures. The liabilities of the business wrecks in
November were the smallest of any month in 1908. We are rapidly
y approaching the condition which we we're in during the highest point
. of the prosperity which was halted a little over a year ago. Gold is
= beginning TO be exported, but this Is not a portent. We OF only
have far more gold than any other country in the world, but we
G. have more than we had a year ago, or ever in the past. During No
vember and December, 1907, in the acute period of the panic, we
obtained $109.0OO,O00 of gold from Europe, some of which was bor-
rowed. We have paid back all that borrowed gold since, and are
s now lending some. As we can get all Of this back whenever we
r need 1t, the outflow does not alarm anybody. The four more years
b of power which have been given to the Republicans means a resump
I ton of Republican prosperity at the point where 1t was cut short
. thirteen months ago.