Omaha daily bee., 1909-01-01

lost ground this year. But from the 49,
sos weekly output which, on october l,
1898, marked the nadir of that trade re-
action, production had got back by the
last mooth of 1894 to 16S, 762. That was
a much larger ratio Of recovery than this
years; yet 1894 is classed in financial
history as a period of slow recovery AT
the end of 1894 production was SO per
cent of the previous years best record.
But the above-stated weekly output at
the beginning of the present month is
only ~ per cent of the 52S,170 tons which
the foundries turned out weekly in July,
1907.
Interesting Parallel.
In all comparisons between the present
twelvemonth and the years which inlme-
diately followed the two great panics
prior to 1907. 1T must be remembered that
volume of trade had been slowly dlmin-
ishing for some considerable time before
the panic of 1893. on the other hand, the
panic of 1873 witnessed a sudden plunge
of industry, directly from a pinnacle of
unparalleled activity and high prices. In
this respect 1907 resembles 1873; one
might expect, therefore. to find the
analogy between those two after-panic
periods more exact. And, in fact, there
have been many close analogies. To which
of the two years, 1874 or 1907, would the
reader suppose the following description
to apply?
Having passed through che extraordin-
airy crisis, there was a general rebound
from the previous depression. and an ex-
pectation of renewed buoyancy in business
affairs, which was not really warranted by
the facts OF the case. This general antici-
patton of a rapid and wonderful recuper-
~ g. A. -eR.,a- - IT.. -a-s, fg not
without significance. as it has formed, to a
great extent, the standard by which the
actual results of the year have been meas
ured. " The effects Of good crops
in the principal articles of agriculture pro.
duce were undoubtedly beneficial.
Rigid economy was practiced alike by all
from the largest corporations to the hum
blest individual.
Railroad earnings showed in most cases
a material falling off as compared with pre-
vious years, so far as their gross receipts
were concerned, but a great economy II
working expenses, which made net earnings
Of a number of prominent lines equal to, oil
greater than, those of the preceding year
Prices of dividend-paying stocks
we're well maintained, particularly in the
last half of the year"
This citation. which so closely describe!
the events OF 1905, Is taken from tn
Financial Chronicle of January 8. 1876, in IT.
review of the year just ended. II Ger
tainly suggests a bit OF reflection. as L
whether. after all, the history of 1908 ha
differed so widely from the history of
normal after-panic year.
Where Precedent is at Fault.
/ There occur in the same review, how
l ever, one or two passages which do not a
all describe 1905. Money was r~elativel,
quite as easy then as in the present year
r and surplus bank reserves as large. But
We are told. ''the stock market was les
a~gitated by violent fluctuations and les
influenced by speculative combination
than for many previous years" and as 4
a consequence, ''the course OF prices wa
thus left to be governed more by nature
causes and by the actual values of IN
several stocks" Here is a contrast whic
may well make the reader pause; II
possibly a key to the characteristic event
1 OF 1903.
Are we better off at the close OF the pres
ent year, or are we worse off, because {
e the wild speculation for the rise which
e from January to December, has rioted o
I the Stock exchange? II that speculatio
we're TO be considered in itself. all righI
, minded people would answer. very niue
worse off. No coed can come from sue