The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-25
Big DEMAND
FOR LOCAL
SECURITIES
Money Conditions Improve,
But Trade Not COrre-
spOndingly Benefited.

ClOSe Oh the HrSI week OF january,
when heavy payments of interest and
dividends were made, continued his
week, the gain in prices over last Sat-
urday ranging from half a point up to
two and five points on bonds and
stocks. and the stock of one bank ad-
vanoed ten points. There was a good
call for securities of the underlying
companies in the Public Service Cor
poration, a feature being orders from
New York and from Philadelphia for
large blocks, and there was also a
steady demand for Newark and Essex
County 4 per cent. long term bonds by
local Institutions and individuals.
The deposits of currency and gold
and silver in the national and savings
banks and the trust companies were
largely increased this week, and the
banks loaned money at So and 6 per
cent, though a month ago it was hard
to get a loan from any of them, even
on the most gilt-edged security. Loans
on savings banks securities, that is.
municipal bonds. were made at 8 per
cent. And yet with all the improve
nient in money conditions there has
not been a corresponding gain in in
dustrial and mercantile conditions
Merchants in all lines have marked
down their goods to sacrifice prices to
attract buyers.
Manufacturers of what are called
luxury articles complain of the depres-
sion in business, and even those who
make articles of everyday use are not
rushed with orders.
The ~stagnation in industrial and in
mercantile business is not local. 1t
affects every city and town in this
country and in European lands. The
great railroads of our country have
SOC, 900 empty freight cars sidetracked,
which means 5000 locomotives out of
use and the same number of engineers
and firemen idle. This shows that
manufacturers are not shipping large
quantities of their products and that
merchants are ordering only small lots
Of goods. Though the vaults of banks
are now stuffed with money, general
business conditions have not appre-
ciably improved. This was predicted
in the EVENING STARS financial
column late in October last. The lead
ing New York daily papers are print
ing optimistic reports of the glowing
prospects of business, but the tens OF
thousands of mechanics and laborers
who are idle know these stories are
not true.
More than a year ago the EVENING
STAR warned it's readers hat a money
and industrial panic was coming, anC
advised men in all lines of business t.
economic and mechanics to HUSBAND
their earnings. But manufacturer
kept on making big extensions to thei
plants. merchants laid in great stock
of goods on credit, and individuals con
tinued to buy articles of luxury oil
promises to pay, with high rates of in
terest. The result is that the wealthy
the moderately rich and those o
medium incomes are now in trouble
and this affects the working class also
for the latter bear the burden in ever.
financial panic at the closing.
When the money stringency began IL
earnest, early in October. the cry wa
raised that Wall Street was to blame
This was done by people, demagogues
who did not know the situation. Th'
men and firms active in Wall Stree
and the big OBSERVATION-DISCLOSURES If on,
will-were the worst victims of tn
money scarcity, or. to tell the truth
the money panic. Men who had Sc, 900,
900 to $4,000, 900 of securities los
y - " Li0 A9lI tCiANio III NeNiAC1s
There were many in Newark, in Es
sex County and in New Jersey whit
We're hard hit. August Belmont wa
SO crippled by his huge ventures il
the New York Subway and Interurbai
roads that he mortgaged his Park Row
property and other valuable real es
tate for q large sum.
Harry Payne Whitney, principal he'll
Of the late William C. Whitney, WHIT
was a multi-mil1ionaire. had to mort
gage his properties TO get a cash loan
of $500, 900. Even J. B. Higgins, whC
owns gold and copper mines and on
OF the most valuable private art gal
leries in America, had to mortgage hi
paIatial New York home and sell hi
great stable of FLOODED race horses il
Kentucky to get ready money. Wher
asked why he did this he said he ha(
to. and that in mis- opinion our country
would not o from the severe
money panic for at least a year.
There are many persons and families il
New Jersey who lost heavily because 0
the big depreciation in values of the secur
tiles they held.
1t is folly to say that only the rich sui
fered because of the money panic, 70
whatever seriously INJURIES the capitalists
lItS men VINO put mlUuby mo DuhllltSS bl
terprises, must also affect the working
people who depend upon those men 70
their weekly wages.
There are many idle mechanics and labor
ers in Newark now and there Is much SUI
fering among them, In one block TIN
writer knows of a mechanic who has beer
IDLE since two weeks before Christmas ant
has a wife and five little children to sup
port. He has walked the streets every dal
In search Of any kind Of a job at whlcl
he could earn even fifty cents a day
Neighbors have sent i'm soup and bread
as they have to another couple with twt
children, and who have no money to pal
rent on February l. A third family in tn
same block is In as bad n condition. Me
chanics fairly well dressed have stopped
men in tho streets this week and asked FOL
some kind Of work to help tnem buy fooC
for Their families. Several zen a com
United suicide because they were idle.
Some persons say these things should
not be made public, but the sufferers
know their condition. aud the manager
| Of big concerns know OF the scores Of
| applications daily by men for employment
! In this column the truth has always beer
told. and the oldeet bank president II
! Newark gave he EVENING STAR hlgf
praise after the money s%tringency hai
passed for printing the truth and advising
everybody to economize.
Z NEFI,, al. TTa--- sAf TTttJenp M gtngL