The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-01-05

TIA NHO -
earlier than expected-capital was
plentiful, and as confidenc recovered
Industrial paralysis quickly disappear
ed. Demand kept so close to supply
that 1t was useless to eXpec much
lower prices at this time. Next to
the confidence begotten of a profitable
harvest. nothing contributed more to
the recovery of industry h n the COM
ing Of the. railroads into the markets
as large buyers OF constructive ma
terials.
The last panic differed from its
predecessors in one important respect,
in that it occurred at a time when the
country was suffering from very ade-
quate transportation facilities. This
was shown by the enormous issue OF
nearly $1,000, 100000 new railroad
securities in spite of it's being a panic
year. A portion of this great sum was
used for ~refunding purposes; but the
bulk went to provide expenditures for
improvements contemplated or under
way. Two other influences contributed
toward preventing a decline in prices
the trusts, which used their power
to the limit in this respect, and the
labor unions, which We're able to sus-
tain wages in spite of business reac-
ton. Labor suffered comparatively
little from the panic. Still another
Influence was the great increase in the
worlds gold supply. This is an ele-
ment the Importance of which is over
estimated in some circles, although
c~heapenlng the cost of gold and turn
ing vast into the banking re-
serves of the world offer a stimulus
that cannot be ignored. The theory
that present high prices are due to
the Increase in gold supply is not sup
ported by facts, either present or his.
tOrical. When the production of
gold is compared with the course of
prices over a long period of years
there is little correspondence between
the two; and as already stated the in
fluences which control prices are
numerous and so complex that gold
must be considered as only one OF
them, and which at most is slow and
distant in operation.
Another beneficial result of the
panic is the spirit of reform which has
been aroused in business circles over
the entire continent, not to speak OF
the similar movement in politics which
preceded it. Higher OF
business conduct are undoubtedly be-
ing established in consequence. The
millennium may be still far distant,
but many abuses are being leSSened
and a keener appreciation of the value
of integrity has been established in
many directions. The movement for
reform extended to Wan street, which
has come in for more than its share Of
blame because of the r~eprehenSlble
practices of a few INSCRIPTIONS pro-
moters and tricksters. The public,
knowing little of financial affairs,
blames Wall street indiscriminate1y.
Those, however, who have the best in
terest Of the Street and pubic welfare
at heart Will welcome. any lifting of
business standards. There are tricks
Of speculation that should be abol-
ished. methods Of promotion That
should put their instlgators in jail,
incorporation laws which are still a
blot upon the statute books of States
that permit them, and banking meth
DDS which should bring down public
ostraciSm upon all that practice them.
BY all means let every ~discreditable
practice in the financial district be
abolished, so that those who come to
Wal street with money to invest may
feel assured of securing a square
deal n getting what they pay for
and purchase through their broker in
an absolute legitimate way.
The year passed without any serious
International complications. although
coming ~perilously near grave disturb
| ances. The Balkan situation is now
much more satisfactory. and it is
| hoped thai the spring. the time for
military action. will be safely passed
without any further symptoms of hos
course, attract much attention,
tie Kaiser's indiscreet utter
| anccs having at times caused serious
International irritation and forced
both England and France into defen-
sive methods which were anything II
ouieting. The protest of the German
PEOPLE, however, has emphatically
subdued the Kaiser. and for a period,
J at least. the course of Germany Will
cause less concern. Meanwhile Eng
land is strongly increasing her navy,
and France is outstanding her imam
cial resources in a remarkable manner,
while all other great nations OF Eu-
| ,nno orn crnaninO under the burden
of keeping up costly ornaments
something which the United States
can congratulate itself upon
There is unrest in India which threat
ems to give Great Britain. anxiety, also
more or less jealousy etween Argen-
tine and Brazil. In Venezuela the
rule Of Castro is probably ended, and
tho revolution in Russia has been
crushed without further bloOdshed.
All Europe however, seems to be an
%ticipating struggles which are only
averted by preparations Tor
war. The three Great Powers, Eng
land, France and Germany, are each
strengthening their armor.
Our business situation is not en-
tirelv satisfactory. and recovery here
has peer less spectacular than in
fnancial aairs. In Wal. Street the
rebound was unquestionably excessive.
so hat a partial recession to more nor
NAL values would cause no surprise
II mercantile and industrial affairs
t5e recovery has been slower but
- sMst-7rffar-n ali probability the vol
800 800 ~: business today will soon be
oaro - that of two or three years
ago with a few possible exceptions.
There is no doubt that depression has
been severest i'll the large cities this
side of the Mississippi and in the great
industrial sections of the East, the
West and the South having suffered
least for reasons already explained.
Nevertheless. the present tendency is
toward improvement, and in due sea-
son the volume of business Will no
doubt reach its former maximum.
Progress will be slow and
MED possibly by by temporary set
backs. 1t is usual, moreover to expect
q return to lower prices in elther
commercial or Industrial pursuits. n
costs of production have been very Sc
riously enhanced by the rise in labor,
the shortening of hours and the ad-
vance in raw materials, the result be
ing that prices cannot now be mann
tanned except by the Introduction OF
| fraSb n10nnnioC In MANY cases SELL