Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-01-04

| err countries certainly brought good
| fortune to the American farmer Hence
the great west knew little of the panic
which swept thru the east with such
! terrific force, and has never been able
| to adequately appreciate the disasters
and paralysis which settled upon the
east last spring and summer. The
prosperity of the western farmer, how
ever, does not need to be further ex-
| plotted. 1t is we'll known that he is
out of debt, has funds in the bank,
| is enjoying luXuries, etc, to all of
which he is most cordially welcome.
The south, however, have been less
fortunate, because the industrial de-
preston in Europe. especially in Great
Britain. caused a sharp decline in con-
sumption and value of cotton, and
made the year lean one in COMPARE
son with 1907. For many years to
come the south will be the chief cotton
producing section of the world, but
the day will be welcomed when thru
a still greater diversiication of indus
try this part of our nation becomes
less dependent upon a single crop.
Our business situation is not entire
ly satisfactory, and recovery here has
been less spectacular than in financial
affairs. In Wall street the rebound was
unquestionably excessive so that a
partial recession to more normal val
ues would cause no surprise. In mer-
camille and industrial affairs the re-
covery has been slower but sounder. In
all probability the volume of business
today will soon be equal to that of two
or three years ago with a few possible
exceptions. There is no doubt that de-
preston has been severest in the large
cities this side of the Mississippi and
in the great industrial sections OF the
east, the west and south having suf-
fered least for reasons already eX-
planned. Nevertheless, the present ten
Gency is toward Improvement, and in
due season the volume of business will
no doubt reach its former maximum
Progress will be slow, and accompanied
possibly by temporary setbacks. 1t is
usual, moreover, to expect return to
lower prices in either commercial or
industrial pursuits. The costs of pro-
duction have been very seriously en-
HANGED by the rise in labor, the short
ening Of hours and the advances in raw
materials, the result being that prices
can not now be maintained except by
the Introduction of fresh economics.
In many cases selling prices have been
pushed SO far as to seriously restrict
consumption--a tendency which, if
continued, must soon compel a general
re-adjustment of values. The so-called
new doctrine of limited production and
high prices can not last indefinitely.
Mr. Carnegie is eminently sound in his
principles when he says that business
should be stimulated by lower prices,
and that the true policy is that of large
sales and small profits. Extravaganza
must give way to economy. Already
there is general complaint among con-
sumers about the high cost of living,
which means that consumption is no
doubt. being checked by unfavorable
conditions He would be wise man in
deed who could say with certainty that
the price movement had reached it's
zenith, so many and so complex are
the influences at work affecting val
ues. About all that can be said is that
our markets as a whole are not bur-
dened with over-supplies, and until
supplies overtake demand no general
weakening can be expected. There is
little chance of any Immediate decline
in the price of food products, because
these, as already stated, are compare
lively scarce the world over. Another
element is that considerable RESPONSE