The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-02-11
OUTLOOK NOT PROMISING.

to read the dope" Of the financial
sharps OF New York at this particular
time. Taft and prosperity was their
slogan until the Sd of last November.
Since Taft is in sight the duty Of ex-
planning the absence Of the party Of
the second part now bears heavily upon
them There are few grains Of com
fort in the existing business situation,
and so far as Henry Clews can see. the
near future is not bright with promise
Here Is. his explanation:
1T is very apparent that We are feel
ing the reaetionary effects Of the panic
more plainly than at any time since it
occurred. There is more hesitation in
spirit than has been experienced in
tariff is blamed for this state Of af-
fairs: get. while an element of delay
and uncertainty. 1t cannot be held re-
sponsible for many of the signs of de-
preston which are daily coming under
observation. Iron and steel products
are not dropping because of an impend
ing change of the tariff, especially for
nothing hurtful is expected in that di-
rectiOn. Iron and steel prices are de-
clining simply because of lack of de-
mand. Railroads are small purchasers,
Notwithstanding the ease with which
they can raise money. and our finished
steel plants are running 10 about only
SO per cent of their capacity. Buyers
have been distrustful because steel
prices were held up in face OF depres-
sion after the panic. and they remain
distrustful because they know that
prices depend more upon artificial reg
ulation than upon the open play of
competition-which is always safer
test of real value than the arbitrary
decision OF great combinations.
1T viii be remembered that We were
all astonished at the wonderful reeu-
perative activity which the country
showed after the crash of 1907. 1t was
argued, and with good reason, that this
panic differed from others, inasmueh as
the agricultural classes were prosper
Gus and the country was not burdened
with serious Overproduction in any
quarter. The rebound from that disas-
ter. however. was entirely too violent
and was overestimated by an excessive
supply Of cheap money and by the ire
mendous restraining power OF the great
corporations or trusts which never be-
fore had the opportunity of exercising
their power in this direction. As a re-
suit we fell into the deiusion that the
effects Of the panic we're over and that
the oid-tinle prosperity would soon be
here. This was a fatal mistake, for
which we are now enduring the penal
~. Those effects have simply been de-
ferred: and il is a question now wheth-
er the cure would not have been more
effectual and more rapid II events had
not been allowed to take their natural
course.
Nearly all of our great trusts are
languishing under the i'll effects Of IN
wise and artificial regulation. Tariff
agitation is as we know. chiefly blamed
for present inertia. and there is no
doubt that many negotiations are held
in suspense on this account; but there
are other elements of depression. as just
noted: and, as no injurious changes are
expected in the tariff. there IS little real
occasion for hesitancy on that account.
The truth is the reimbursement process is
stiil incomplete. We must come down
to lower costs Of production and lower
costs of living; then we may be ready
for fresh start. Meanwhile tariff re-
vision will continue to be used as a
DOGGY BY those who wish to brighten
congress out of making any important
reductions in the schedules"
The arguments used by the Demo-
Gratis In the recent campaign are being
confirmed each week in the letters Of
the New York brokerage ana banking
houses to their customers in the west.
The effects Of the panic are still with
US and the trusts continue 20 hold up
the country for their pound Of flesh.
Cheap money IS driving out the gold
and the government IS spending half a
million a day more than the revenues
warrant And the end is not yet.
The Chinese Sly Eosnna1iaS eapuof