The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-02-08

lany quarter. The rebound from that
disaster however, was entirely too
violent and was overstimulated b. an
Excessive supply of cheap money srdI
/ by the tremendous restraining power
of the great corporations or trusts
which never before had the oppor-
tunity OF exercising their power in
this direction. As a result we fell in
to the delusion that the effects of the
panic were over and that the old-time
prosperity would soon be here. This
was fatal mistake for which we are
lnow enduring the penalty. Those
effects have simply been deferred;
and II Is a question now whether the.
cure would not have been more effec-
tual and more rapid II events had not
been allowed to take their natural
course. The cotton goods market,
for instance, is a striking example of
the beneficient working OF the open
market. No industry in this country
Is more free of combinations and
more open to tree competition than
that Of cotton goods. As a result
cottons were the first TO undergo the
necessary readjustment OF prices and
iproduction; and today that market Is
In better condition in every respect
than any other great industry OF the
country. Nearly all Of our great
trusts are languishing under the Ill
effects Of unwise and. artificial regu-
ladon. Tariff agitation is. as we know,
chiefly blamed for present inertia.
and there n no doubt that many me-
gotiations are held in suspense on
this account; but there are other ele-
ments of depression. as just noted |
and, as no injurious changes are ex-
pected in the tariff, there Is little real
occasion for hesltaney on that account
The truth IS the readjustment pro-
cess IS still incomplete. We must
come down to lower costs Of produc-
ton and lower costs of living: then
we may be ready for a fresh start, |
Meanwhile tariff revision will cou-
time to be used as a bogey by those
who wish 10 frighten congress out OF
making any important reductions In
the schedules.
stock Operations
Stock exchange operations continue /
TO reflect outside conditions. inertia
and weakness being the main feat
ures. Many leading operators are
absent on their usual winter vaca-
tions. and in banking circles there. is
marked absence of the optimism so
prevalent before the election. The
main support of the market appears
10 be the money situation. Funds are /
still overabundant. and our banks and
trust companies are generally In ex-
ceptlonally sound condition. Theif /
chief complaint Is the difficulty of find
ing satisfactory employment for their
money. Had we an elastic currency \
system and effective redemption ar
engagements. the situation would quick
ly correct Itself. As Il is the III eff
fects OF this combination OF too much
money and too little business must be
Overcome as best we may. Our ma
tlCnal finances are becoming a matter \
OF real concern. The treasury deficit
Is now SOnOODOO. Some excellent
.AuNHuIIltM NrllfHuAI that ~ viii
.s135, 100000 at the end Of the fiscal
year IN June. All this Is due more
to national extravagance than 10 a (
falling on In revenue. The latter Is
only temporary and deficit would
have come even had government re-
ceipts been maintained because Of the
reckless increase OF national expenses.
With the depletion OF the treasury
surplus public deposits in the banks
are being reduced TO minimum
This, however. has no serious effe Il
upon the money market. since such
funds quickly find their way back TO
the banks The condition Of the
treasury will OF course be used as an
argument against tariff revision. rot-
withstandlng the fact that when busi-
ness reviyes revenues wiz increase
and could In many instances be actu-
ally augmented by a judicious lower
ing OF some OF the schedules.
Gold Export.
Gold exports were renewed. further
shipments having gone to Argentinel
on London account and more IS Ike
ly to follow. London Is now fnding
less difficulty In obtaining gol1 and
is correspondIngly relieved. 20 that
better tone Is reported IN that mar
ket as well as better investment de-
mand Investors here are in an OK
lceedingly conservative mood. Their
demands have been satisfied for the
time being. and banking ciccles are
not inclined TO subscribe 20 further
bond issues until those now in the
market are better distributed. 4 good
ly portion of the new issues have
been used for the taking care OF ma
turing obligations. but the excessive
new offerings since January l are eN-
ertlng more or less depressing et-
feet. Speculation is confined within
narrow limits. Every sharp decline
is followed by more or less buying 70 |