Bisbee daily review., 1908-10-28
RECOVERY IF COUNTRY HAS
 BEEN RAPID
Henry CleWS Sets Forth Array of Facts Demonstrating Great Power of the United States to ReCuperate.

states to ReCuperate.
 NEW YORK, Oct 27.-It has been a year since the panic was at it's height. To those wao fully appreciate the wide qualifications of that disaster and uz derstood tn tremendous amount ol liquidation that must follow, the re- covery since then has been simply as tonishing. In no previous panic, ol anything like such severity, has re- cuperation been so rapid or so com plete. Already security values arc back upon practically the same lever ss before the panic; some of course being lower, but not a few actually higher; and this after large losses in earnings and frequent reductions iu dividends. Much of this recovery in securities from post panic prices was of course due to the glut of idle money at exceptionally low rates or interest, which made good stocks and bonds look exceedingly cheap. In consequence, shrewd investors bought freely; and the big spectators with their easy control of the money mar ket were enabled to manipulate prices freely and secure large profits on the scuritis they bought to stay the panic For the courage displayed in the tins of distress the rich men wno took the brunt of the shock in October last have reaped handsome rewards, which no one who thoroughly appreciated the crisis begrudges. Yet the fact remains that one of the most import ant elements in the rapid recovery of 1908 was the extraordinary abund- ance of cheap money, which not only stimulated speculative recovery but saved many good concerns from going under that otherwise would have been obliged to licuidate; At the same time cheap money was only ne factor There has come another of still great CT consequence, and that is the un- bounded prosperity of the American farmer. Without repeating familiar facts it is sufficient to remark that here is the real foundation of the re- markable recovery in the United States, which has had no parallel in other countries, even where the de pression was less acute. Last year our agricultural products were valued at less than S7,500, 100000. This year they will reach fully $S,OOO, GOO, 900, or more than S500,000,00 in excess of last year. This explains the optimism which one begins to encounter as soon as he passes the AIleghenies, and which seems to know no bounds when the rich prairie States of the West are reached. Our Western bankers on sa concerning their business future, es- pecially after the election; and the only notes of pessimism to be heard come from the great cities where the depression of industry which arose from the financial crisis is most seen and felt. This is particularly true among the Eastern cities. Neverthe- less conditions are improving and the volume of business is steadily grow ing up to that of a year ago. This is enphatically proved by the latest railroad earnings, 37 roads reporting loss of less than 4 per cent during the first week of October. In the first week of September 40 roads re- ported a loss of 10 per cent, and in the first week of August fl roads re- ported a loss of IT per cent. In pre- yious weeks the losses had run up as nigh as 20 per cent; all of which shows a steady resumption of busi- ness, exceedingly gratifying consider ing the severity of the panic
 As to the future, is is somewhat perpledng and confused; and it is quite possible that stocks and trade may not move along together. The stock market seems to have fully dis counted all improvement ill the busi- ness situation both present and pros pective. In fact, not a few stocks are selling too nigh, considering that prices are above present level. Rat the floating supply of securities is held in strong hands, backed by an unlimited amount of cheap money. These big holders appear united in their purpose to lift prices to high CT level, and as long as they hold together it will be difficult to bring about any great reaction. The bear side of the market is weak in both talent and resources; consequently the bulls may even yet secure addi- tional success over what they have al ready achieved; yet it is certain that on all advances the big holders will attempt to tighten their load and turn their present big paper profits into cash. The shrewd buyer, therefore, will take these facts into account and continue to exercise much caution When Congress assemblies one of the first subjects that will be taken up will be tariff revision. There is nc doubt that many of our highly pro tected industries are abundantly able to stand a reasonable tariff reduction
 but agitation and doubt must tend tC delay and unsettle business, which will hardly be helpful to the stock market. In all probability no very radical changes will be made; foi while both parties are pledged to re vision, each on its own lines, still
 with Democratic House and Repub lican Senate agreement on the tariff
 will be exceedingly difficult, and
 much time may be consumed in th' making of comparatively smal
 changes. At any rate, there is little
 prospect of injury to business iron
 tariff revision. except what will conn from delay and uncertainty.
 HENRY CLEWS. |
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