Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-01-01
THE BUSINESS OF 1907
Reviews of Trade by the Big
. Commercial Agencies.
THE STATISTICAL EXHIBITS
Period Reviewed One of Activity,
But Dizziness Later.
THE OUTLOOK FOR 1908
Regarded Not Very Optimistic, But
the Prospects Are Somewhat
Reassuring.
THE OUTLOOK FOR 1908

NEW YORK, January 1.-Bradstreet' IS
review of the business year says:
Nineteen hundred and seven was a
year of extremes-of excessive, apparent
ly Unsuitable, demand early, but later Of
dullness unequaled for years. Coincdent-
ally there were three separate and distinct
declines in prices of securities, interspers-
ed. however, with rallies depriving the
general downward movement of the year
of its uniformity, but foreshadowing the
later quieting down of trade and in
dustry.
Accompanying and as result of the
last great break in stock and bond prices
there ensued a marked loss of public con-
hdence. suspensions of financial institu-
tons so swelling business failure liabili-
ties as TO recall the damage of 1893. and
an acute money panic, causing wide
spread suspension of trade and industry,
the year closing with a degree of peSsi-
mism as to the outlook only to be COM
pared to the feeling of optimism ruling
at its opering.
''The year saw and the markets for Sc
eurities and commodities reflected many
disturbing occurrences. besides witnessing
the play of forces and influences having
their inception in preceding years For
one thing, it became evident that the en-
tire wurld-financial. commercial and in
dustral-was. in 1907, living beyond its
means. and that the boosted large addi-
lions to the worlds stock of gold were
not Sufficient to offset the destructive
effects of past wasteful wars, the vast
loss of property growing out of conflagra-
tons in 1906 and the increased expendi-
lures of all countries, states, municipali-
ties and individuals.
Burdens on Money Supplies.
Speculation in real estate and mining
securities put additional burdens upon
money supplies, already strained by the
necessity of providing sufficient of the cir
culating medium to carry along the unpre-
cedented demand for all kinds of goods
selling at the highest prices in years
In addition. the business and financial
world was called on to bear effects of past
shocks to confidence of investors at home
and abroad resulting from life insurance
disclosures. the revelations that some
banking interests were willing to deny
financial accommodation to ordinary mer-
camille borrowers. in order that unreason-
ing speculation might be fostered. and
proofs that laws had been evaded by
some corporations through freight dis
examinations.
"The railroads were among the first to
learn that short-time notes at high rates
of interest were a. precarious dependence
for supplies of liquid capital, and attacks
upon these corporations by legislatures
prevented fresh borrowing. even If capt.
tai was to be had. which was doubtful
Government prosecutions of corporations
also hurt investment buying of securities.
and the lack of conservatism displayed
by the federal authorities at times when
the public mind needed reinsurance and
calming were certainly not helpful
Incidentally some members OF the
banking community, in the time of acute
fear, last October. preached sanity and
against the boarding of money, and then
did what they wete inveighing against to
the detriment of the entire business COM
munity. AS one critic put it. 1t was not
SO much scarce money as it was scared
money that caused the damage In the
autumn OF 1907 after the actual panic. was
stayed by a few giants of finance.
Wholesale trade was large, but retail
trnde was irregular, and. crops were
Easlls%,