The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1908-12-31
1903 WILL FIND
PROSPERITY HERE
BACK TO NORMAL
Banks, Railroads, Factories and
Farms All Report Return
of Good Times.
BUMPER CROP WAS
PANIC'S KNOCKOUT
Indications Point to a Revival
Along All Lines Next
Year.


cry from an era of panic and general
recession in business, is the only ade-
quate way to describe 1908 In the inan-
eial world. Although the most acute
stages of the panic, as far as 1t affected
the financial markets of this country,
had passed at the close of 1907. the
effects of this panic were still visible
and the aftermath of upheavel and
decentralization of prices in stocks,
bonds and all other classes of securities
was yet to come when 1908 dawned.
Early in January Of this year the lead
ing financiers of the East and West.
North and South, took upon themselves
the heavy BURDEN of rebuilding the
shattered and cru1hbling structure, 1t
was a difficult and perilous undertaking.
for these interests to attempt the recon-
struction of the financial fabric while
even its foundations appeared likely to
give aWay at IN moment and crush
those who were essaying the task of
modern Aliases by supporting it when
threatened with complete destruction.
These captains of finance at length sue
ceeded in turning doubt and hesitation
into confidence, bankrupt financial and
Industrial institutions into going con-
Germs and a general reactionary move
ment into a rally.
The restoration of confidence and faith
In the future prosperity of the country
and the uplift in prices of securities as
well as the repairing of most of the
damage worked by the panic were not
accomplished by artificial methods, says
the New York Commercial. They were
effected by the removal of depressing
factors in the situation, and the elm
nation of dangerous and INSCRIPTIONS
banking interests which had paralyzed
industry. The clearing away of this
debris made it possible to, begin the re-
construction process which was facili-
tated by the splendid grain and cotton
crops and the heavy output of the
mines.
Back on Solid Basis.
Though sven now it cannot be said
that the process of rehabilitation has
been completed, there Is no doubt that
the financial, Industrial and railroad en-
terprises of the country have been re-
stored to@a solid working basis, from
which 1t will be easily possible for them
to reach levels at which they may rec
ord profits even greater than those
which they obtained in the years prior
to the panic of 1907.
At the beginning of 1908, many banks
and trust companies still were closed,
while others refused to make payments
in currency or to permit withdrawal of
| accounts inside of the go days period.
Several of these institutions were ar
ranging for partial payments on these
accounts, and for effecting an ultimate
settlement of their obligations to de-
p~ositors in this tanner. There were
outstanding many millions Of dollars
In New York Clearing House and other
clearing house certificates, and a high
premium prevailed on cash. Most bank
ers and investors who had money were
boarding It; the associated banks in
New York had a deficit of more than
800, 900. 900 and gold was being imported
from Europe.
Railroads Doing We'll.
The railroads were showing how
heavy had been the falling off in their
gross revenues, and were yet to record
sven greater losses in gross n net
earnings as a result of the recession
In freight business. The usual mid
winter shortage of freight cars had
suddenly changed to a great surplus of
idle cars. The number of Idle cars
continued to increase until the middle
of spring, when it began to decrease
and continued to diminish until, when
the crop moving period arrived, the
number had dwindled almost to the
vanishing point.
Speed was attained In the movement
toward market recovery from the de-
preston In business, when 1t became
known that the farm products of the
country had reached an unprecedented
volume involving even In farm value
81, 778. 900. 900. The harvests of grain,
including corn, winter and spring
wheat, oats, barley, rye. buckwheat.
flaxseed and rice, as well as Of potatoes,
hay, tobacco and cotton placed the
farmer and plantation owner in a pros
porous condition. The prosperity of the
farmer. brought prosperity to the coun-
try merchant and the country banks,
so tina the interior banks were able to
finance the crop movement without any
material assistance from the Eastern
money centers.
Banks Rehabilitated.
The rehabilitation of the banks and
trust companies which had gone under
or were threatened with insolvency,
during the panic period was accom-
plished speedily by numerous reorgani-
cation committees, composed of the
shrewdest ~fnanciers and banking inter
ests of the country. The bank clear
ings also increased in volume as the
business of the country reached larger
proportions. An excellent reflection of
the Improvement in business may be
obtained from a study of the bank
clearings In New York, which touched
in February the unusually low record
of S ,S9e, 030, 1928 when the recession In
the industrial world had reached ebb
tide. From this point onward, how
ever, recovery became apparent. the
Marcel. %clearings reaching $500, 040, 1888
whilg the April and May clearings
amounted to $5,4s7,5 74, 1903 and $685.
1873, $40 respectively. The June clearings
drophed somewhat, touching S., 65S, 1884,
GIG, but the July and August clearings
again recorded Improvement. and the
September clearings reached Sc. 1872. 49,
GA, while the October and November
~clearfngs continued to record increases,
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