New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1908-01-08
PAST AND FUTURE
OF OUR FINANCES,
Nations Panic Partly Due to Ex.
travagance, Says Financier.
WHAT ECONOMY WILL DO.

WHAT ECUNUM4 WILL UU.
etuyvesant Fish Shows How 100000
Americans Can Save $1,55f,25o,0 600
In Year-Judge Gary Predicts I'M
provement Soon-Business to Be
Done on Higher Plane.
Extravaganza on the part of the
whole nation and failure to punish or
remove from their places of trust the
men who have been shown to be Of
tenders against the laws are two of
the causes for the recent financial
panic given by Stuyvesant Fish in the
annual financial review published the
other day by the New York Post,
which also gives interesting predic-
lions by men of great prominence in
business and financial matters as to
the outleok for 1908. Mr.. Fish says:
"When our S5,O0O,OOO people do econ
omize and really save something daily
the figures will roll up with amazing
rapidity, for if each of them should
save on an average so small sum as
5 cents a day it will aggregate 81 ,551,-
250,O00 In a year"
Tracing the causes of the panic, Mr..
Fish says that whenever state or fed
eral inquiries have been made in in
surance. railroads or local traction
matters corruption has been unearthed
and five or six we'll known names have
always cropped up. He adds:
1.-THE guilty parties show no signs of
repentance, much less of making resti-
tuition. Nor have the chief offenders
resigned or been removed from the
positions Of trust and confidence which
they have so greatly and frequently
abused to their own profit and to the
loss of their stockholders. In the light
of these and similar facts, it is strange
that the large deposits in our own
savings banks and in the national
banks in the west and the vast amount
Of money actually held by the people,
especially the foreigners among us,
are not seeking investment in cor
porate securities despite the excessive
ly low prices now prevailing
Continuing, Mr.. Fish says regarding
the future:
Eat the risk of seeming pessimistic l
cannot help thinking that as the prime
cause Of our present troubles has not
been removed we must undergo a Pc
Rod of depression and curtailment in
business and again learn in the hard
school of adversely the lesson of econ
omy. Nor in the absence of a restora-
ton Of confidence in corporate manage
ment is it possible to say when a
change for the better will come about
'Let us hope we are nearing pc
Rod when time and an awakened pub
lie conscience will remove from power
some of those who have been the
chief sinners, and economy will re-
store the losses created by the waste
the extravaganza and the wickedness
Of the last few years.
Ex-Judge Elbert II. Gary, directing
head Of the United States Steel corpo-
ration, primarily ascribes the recent
panic to exposure of the condition and
management of certain banks. In ac-
counting for the violence Of the panic
he says:
1.-THE volume of business had been
greater than the supply Of money The
imperfection Of our financial system
had large influence. People had
been unreasonably extravaganza in per-
sonal matters and also in business
methods and expenditures. More or
less acknowledgement in large affairs
was being exposed, and investors were
surprised and frightened"
AS to the question whether the re-
sultant depression will be long or
short, he says:
1T requires courage to make public
an opinion in regard to the future. The
depression should not be long contin-
ued There ought to be noticeable
improvement in business before the
middle Of 1908 and decided improve
ment before the end of the year.
OF the encouraging factors in the
financial and industrial future he says
''The wealth of the country is great
and is growing greater. The necessi-
ties of the country are constantly in
creasing There are both ability and
disposition to spend money when conf
dence is restored. The experiences we
have been passing through during the
last year will ultimately be of great
benefit. Business will be done Oh
higher plane. Every one will be more
disposed to recognize the rights and
interests of Others There will be
better observance of the laws. The
npODIe generally will he less extra va