The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-01-05

Season the volume or Business Will
Return to the Notch Reached Be-
fore the Panic.
New York, Dec. 21.-The United
States has given another striking
Demonstration of its extraordinary re-
cuperatiVe powers. A Sr"t W
were in the very abyss OF oePressIoh,
suffering from the memofaple oclo,
Der panic. Business had c'il'iaoeeu
fully - ner cent and more IN Noiume'
and securities had suffered q deprecla-
ton of over S350.000, 00t. Ioody pusl-
ness is gradually approaching normal
conditions. while securities nave not
only recovered all previous l2sS, put
in many cases are selling dboNe the
boom prices of 1860. Such an
emphatic and widespread feCoEeiS -
beyond all precedent, but before re
garding its permanence WIN elther
too much skepticism or too much CON
fidence it would be prudent 10 consider
the causes of such prompt recovery
The whole world is passing ttlroush
a stage of remarkable
Civilization is developing at uemen-
dons speed under the inCcssdnt sunni
lus of invention. education ana art.
AS a result Of these forces new wants
are constantly being created aHi new
industries necessarily arise L" SdliSlE
them. What were luXuries q decade
ago are now classed as necessities with
many-Witness: automobile. olcScleS'
telephones, typeWriters, cameras
gramophones. etc. ctc.-and IT IS
needless to say that developments OF
this sort, as we'll as the use OF mn
proved machinery, give immense ad-
ditional employment to both capltal
and labor, drawing them away from
less profitable industries 7 helpIhg
-. - - ;,Ir,ct,aiII artIEIfN- RH1f
even incentives To continued
activity and to the growth OF new m
duStrieS are found in the growth OF
new popu alton and the rapid accumu
lation of wealth which encourages
larger personal expenditures. 4 coun-
try with an energetic population OF
over S8,000,00 that annually grows
nearly So, 900, 900 600 upon the surface
of the earth: that digs considerably
over 50, 900, 600, 900 from beneath its
surface; tina turns out annually man
ufactures valued at $15,0Q0, coo, 900;
that imports 81, 600, 600, 00G and eX-
ports $1,700, 900. 600. and whose rail
roads earn $4,000, O00, 600 every. year
is a nation that cannot be expected TO
long rest content in a state Of lethargy
or depression. Our natural resources
are still incalculable; they simply
await the magic touch OF capital and
labor to pour out their benefIcent uul-
iCl0S- anu us itHS us II HlSIhSl ctll DC
found for them such activity is GER
tain to continue.
OF course the chief factor in our
recovery has boon the continued pros
perity of the American farmer. This
year he will receive. as said above,
nearly eight billion dollars (to be
exact $7.7TS,000, 000b for his products,
which is approximately three hundred
million dollars more than last year.
1 Vic ,zr.,l& Iv@~ 1,~ 80 . - 1000
but to high prices the world over, for
nearly everything that crows on the
soil today is relatively scarce; agri-
culture in the United States having
fallen seriously behind the growth in
population and manufactures during
the last two or three decades. The year
1908 did not witness big crops in the
United States, but a full average yield
was obtained, and, what was most ef-
f%ective, prices We're exceedingly profit
able to growers. A big harvest would.
it is true, have benefited the cOmmu-
nifty at large, for well distributed
plenty is always to be preferred to
scarcity, but the short crODs of other
countries certainly brought good for
tune to the American farmer. Hence
the Great West knew little OF the panic
which swept through the East with
such terrific force and has never been
able to adequately appreciate the dis
asters and paralysis which settled
upon the East last spring and summer
The prosperity of the Western farmer
however, does not need to be further
exploited. 1t is we'll known that he
is out of debt, has funds in the bank, is
enjoying %luxuries, etc, to all of which
be IS most cordially welcome. The
South, however. have been less. for.
innate, because the irsuatrfaf 1epTez:
son IN Europe, especially in Great
Britain, caused a sharp decline in
consumption n value Of cotton, and
maze the wear a lean one in conpari-
son with 1907. For many wears TO
come the South will be the chief cot
ton producing section of the world.
but the day will be welcomed when
through a still greater classification
of industry this part of our ration be-
comes less dependent upon 4 single
o
Since the main cause Of ne panic
was the breakdown of credit. not only
in the United States. but in Germany
and Great Britain, the effece Of the
panic were most noticeable in imam
cial circles; the prostration IF indus-
try and trade Whic,s followed being
chie1ly a consequence of tn Nioieit
contraction of credit. Fortuna our
industrial affairs We're generally SOUND.
1hefe was comparatively litt'e over
production, and less Ove~r-tradin2 than
generally accompanies such porous OF
activity as We're enjoyed durine the
ten years preceding 1907. AS q .,lole
the nation could not be said ~ nave
suffered from Over-productiOn the
usual cause of a Commercial ndhlc,
Our excuses We're chiefly iIuthcla
IN character; there had been too ereal
an issue Of securities. an invfoinatt
speculation in the same. and ToehlesS
expenditure of credit, creating ciloiS
n q was seriously aggravated ny 0ul
a~ntlquated currency system. Ne''l.lG-
less the panic accomplished lhuci
goot 1t Weeded out weak ildctS
created sounder basic condition ahe
paved the way for a fresh ioi""le
movement.
1t had been hoped that the pm
would at least have had the Advances
OF lowering the costs of liNlhS aH'
costs of production. 1t has done heiiie
effectively. and the reasons are mo
difficult to discover. In M 40
place. there has not been suflcleh
contraction in demand to Warrant On
further shrinkaee in prices at IN
tlme Such declines as occurfc" y
IRON, steel. building materials 80
ton goods, Woolens and other pr4"ucu
were of a moderate character, Eel -?
revived demand and proved that y
spite. of the severe blow admlnlStere
by the panic a market was fofthc9nl
ing for manufactured goods at nlo'nl
- ~ 70