Bisbee daily review., 1909-01-05

states has given another striking dem onstration of it's extraordinary recup erative powers. A year ago we were in the very abyss of depression. sui fering from the memorable October panic. Business had contracted fully 25 per cent and more iD volume. ana securities had suffered a depreciation of over s35o. o.0o0. .000. Today business is gradually approaching normal condi tions. while securities have not only recovered all previous loss. but in many eases are selling above the boom prices of 190e-07 Such an em- phatic and widespread recovery is be yond all precedent, but before regard ing it's permanence with either too much skepticism or too much conf dence it would be prudent to consider the causes of such prompt recovery.
 The whole world is passing through a stage of remarkable development. Civilization is developing at tremend Ous speed under the incessant gtimu luS of invention, education and art As a result of these forces new wants are constantly being created and new industries necessarily arise to satisfy them. Wlat were luxuries a decade ago are now elassed as necessities with many-witness: automobiles, bi. cycles. telephones. typcwriters. cam eras, grlmophones, etc, etc.-and it is needless to say that developments of this sort. as we'll as the use oi improved machinery. give immense additional employment to bota capi saV Nr.l.. v.-a.. from less profitable industries and helping sustain general industrial ac' ticity. But even stronger incentives to continued activity and to the growth of new population and the rapid accumulation Of wealth which encourages larges personal eXpendi- lures. 4 country with an energetic population of over SS,000 900. taat an nuaIly grows nearly SS.e00. Oo0, COG upon the surface of the earth; that digs considerably over S2, 0G0. 900. .000 from beneath it's surface: that turns out an nually manufactures valued at SlJ,- 900 900. 900. and whose railroads earn S2.600.0O0.Q00 every year Is a nation that cannot be expected to long rest content in a state of letharey- or de- pression. Our natural resources are still incalculable; they simply await the magic touch of capital and labor to pour out their beneficent utilities. and as long as a market can be found for them such activity is certain to continue
 or course. the chief factor in our re coKeTy has been the continued pros perity Of the American farmer. This Hrsanr. will v.rasxra sg,fd nearly eight billion dollars (to be ex- act N,17S,0e,000l for his products, .Iwh'ch is approximately three hundred million dollars more than last year This result was due not to big crops, but to high prices the world over, for ptariy everything that grows on the soil today is relatively scarce; agri- culture in the United States having fallen seriously behind the growth in population and manufactures durins the last two or three decades. The year 1908 did not witness big crops in .tae Upited States, but a full average yield was obtained, ana, what was most effective, prices were exceeding ly profitable to growers. A big har vest would. 1t is true, have benefited the community at large, for well dis tributed plenty is always to be pre- fsrred to scarcity, but the short crops of other countries certainly brought good fortune 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 appre- ciate the disasters and paralysis which settled upon the East last spring and summer The prosperity of the West ern farmer. however, does not need to be further exploited It is well known that he is out of debt, has funds in the bank, is enjoying luXuries, etc, to all of which ne is most cordial ly welcome. The South, however, have been less fortunate, because the in- dustrial depression in Europe, espec- ially in Great Britian. caused a sharp decline in consumption and value of cotton. and made the year a lean one in comparison with 1907. For many years to come the South will be the chief cotton producing section of the world, Nbut the day will be welcomed when through still greater diversifi cation of industry this part of our na. ton becomes less dependent upon a single crop.
 Since the main cause of the panic was the breakdown of credit, not only in the United States, but in Germany and Great Britian, the effects of the panic were most noticeable in finan. cial circles; the prostration of indus try and trade which followed being chiefly a consequence Of the violent contraction of credit. Fortunately. our industrial affairs were generally sound There was comparatively lit. tie over-production, and less over trading than generally accompaies such periods of activity as were en ioyed during the ten years preceding 1907. As Q whole the nation could mol be said to have suffered from over pro ducti0R. tie usual cause Of a commer cfal panic Our excesses were chief iy financial in character: there had been too great an issue of securities an inordinate speculation in the same and reckless expenditure of credit. creating a crisis that was seriously aggravated by our antiquated curreh cy system. Nevertheless the pauIc accomplished much good. It weeded p0L Ntdh Bidttrs boot' conditions and paved the way for a fresh forward movement
 It had been hoped that the panic would at least have had the advant age of lowering the costs of living ant costs of production. 1t mas done neither effectively and the reasons arr not difficult to discover. In the frs place. there has not been sufficient contraction in demand to warrant an, further shrinkage in prices at this