Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1908-06-05
FRIDAY, JUNE S, 1908.
THE PANIC Is PAST.
British Observer Thinks the Stress
Is Over.

Is Over.
The cloud of uncertainty which has
been hanging over the business ele-
ment of the United States Is, I'm the
opinion Of the British commercial
agent i'm this country, passing away.
In q recent report to parliament on
this subject. Mr.. Seymour Bell, the
British commercial agent III the UNI
ted States. says:
.'The year 1907 was one Of sharp
contrasts in the United States. 1t was
year Of great activity and deep de-
preston During the earlier months
all Industries were exceedingly Dusy
and mills were working at thelr Ut
most capacity. Many untitled orders
had been carried over from the pre-
vious year and buyers were experience
ing great difficulty in getting delivery
Of their goods. The railway lines were
congested, wages were at their high
est, and the high price of commodl-
ties raised the price of living to an eX-
treme point. 1t was recognized by all
those in a position to form an lnde-
pendent opinion that this tremendous
Industrial activity could not last; that
1t was merely a question Of time be-
fore a reaction would set In. 1t be-
came quite evident that the country
was living beyond it's means. Money
was becoming scarce and the railways
and other corporations were encoun-
tering great difficulties in obtaining
the capital necessary to carry on the
improvements and extensions in the
process of being carried out. Specula-
ton in mining stocks and real estate
which had been the personal extrava-
gance was at its height. This all
tended to place additional burdens
on the money supplies, which were
"a fn
industries Of the country. The
railways were among the earliest
and greatest sufferers from the
financial stringency. They found
1t almost impossible to dispose OF Sc
curities at a reasonable price and were
forced to issue short time notes at a
comparatively high rate OF interest
to enable them to continue thelr de-
yelopments AS wages were high ow-
ing TO the scarcity of labor, and high
prices were being paid for materials,
the net earnings Of the railways were
considerably reduced, although the
gross earnings showed an increase.
This brought about lower quotations
for railway shares and the industrials
followed the downward path.
THE situation was peculiar. On the
one hand there were the manufactur-
ers with more orders than they could
merchants selling large quantities OF
goods at satisfactory prices, labor In
such demand that even with the ad-
dition of the 100000 immigrants 1t
was necessary to employ inefficient
workers at good wages. On the other
hand there was dear money, owing TO
scarcity.
when, owing to a failure in New
York, light was thrown on the man,
agement of some Of the large financial
concerns in the city, public conf
dence, which had previously been un-
dermined by certain Investigations
gave way completely, resulting In an
acute money panic. Careful students
of the situation had foreseen a COL
lapse before the end OF the year, put
did not anticipate that 1t would come
with such suddenness.
"The panic was entirely financial. 1t
has, II Is true, brought about a wide
spread suspension Of trade and INDUS
try throughout the country, but there
has been no throwing on the market
Of merchandise at ruinous prices, the
usual accompaniment Of Industrial
panics. The manufacturers. on the
contrary, faced the inevitable and
without delay proceeded to curtail the
supply and thus reduce such chances
as there might have been of Cutting
the market with unsaleable articles.
Fortunately for the country, warning
of the trouble was given early, and 1t
was possible to take steps In time TO
prepare for 1t.
"As to the length of time the pres
ent depression will last, 1t Is dlncuit
to form an opinion. 1t must not De
forgotten that the farmers, who form
the backbone of American prosperity,
have not been affected by the finan-
cial situation. Though the crops In
1907 fell short in quantity as compar-
ed with 1906, higher prices were OBJ
tanned and the farmers received con-
siderably more money for their crops
than In the previous year. A country
that produces crops valued at nearly
1,5O0, 100000 pounds Is unlikely to
suffer long from industrial stagna-
ton. 1t represents too large an amount
to be held long uninvested. Farmers
have had nine years Of almost unin-
terrupted prosperity, their buying
power Is high, and the towns depen-
dent upon them will remain prosper
Gus.
1.-THE farmers who a few years ago
owed money now own money ana
have an assured outlet for their pro-
ducts, as there is no oversupply.
1.-The cloud Of uncertainty, which
has been hanging over the country for
so long and gradually growing more
threatening. is now passing away, and
it may be said that the worst Of the
storm has now passed. There will in
all probabilities he mercantile disturb
ances for some months to come, but
readjustment and recuperation are
we'll under way, and unless labor
troubles should retard the improve
ment or monopolies Of capital inter
fere to keep up prices at too high a
level, it is expected that before many
months have passed business will be