The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-06-22
TIME FOR CAUTION.

TIME FOR CAOIlON.
The big bankers and the financial
newspapers and magazines are taking
note OF the crop conditions with the
view OF conserving the currency until
the crop-moving period has passed
The Wall street market is dull. and
there is much talk OF the railroad law
and the trust prosecutions Specula-
tors are inclined 10 go slow until con-
.ditions become more settled and the
railroad business Is adjusted 70 meet
the rsw conditions.
Yet the country IS highly prosper
Gus. a vast majority Of the worlSmen
are employed. and trade OF all kinds
IS Tar better than the average. Just
why there should be any apprehension
Is hard % understand.
Food prices are high. but 30 are
wages. and the farmer has been rich
~ rewarded for his toll in the fields.
Never in the history OF the world have
30 many people shared I'm the general
prosperity. stu. now and then there
IS a discordant note. and there is a
AAN NWNAAAWAN WAA AAAN NNAAA VI AAAN AAsAAAs
ers to view the future with alarm on
account OF the extravaganza OF those
I'm moderate circumstances.
An Official Of one OF the largest IL
nancial institutions OF Boston. IN dis
cussinE the existing condition. says:
Another phase Of the situation
which must not be lost sight Of is the
automobile problem. While I do not
ike 20 appear pessimistic. must say
that think this year will see the be-
ginning Of the end OF the automobile
craze. In my opinion Il IS the bicycle
business all over again, except that the
amount Of capital involved Is from
ten q thirty times greater. For exam
pie. I'm the early days a bicycle cost
$3.50. and anybody could make lot Of
money manufacturing them at those
figures.
with automobiles from $1,000 to
$4,000 the same thing IS true. and the
result is that a lot Of mushroom con-
Germs have sprung up. especially In the
middle west. 10 make automobiles that
are being sold to a lot Of people who
cannot afford them. They mortgage
their hou., or anything else they have
on which money can be raised. and the
banks are consequently asked to make
n good many loans. the cause Of which
is the automobile. Furthermore, un-
derrtand there is a very large call on
insurance companies at present for
loans on policies. probably for the
same reason.
a good deal Of money IS therefore
tied up en- automobiles. but that is not
the root Of the evil. From an eco
nomic standpoint the trouble Is that
money spent FOR an automobile imme-
diately becomes nonproductive. and
Furthermore. not only does # cease
working for the automobile owner. but
90 dwindlcs every year as his car gets
older Millions Of dollars within a few
years viii represent nothing but junk
IN the shape Of old automobiles. IfI
this money were going into business.
the situation would be entirely diff
ferent
The American people do not yet
realize what this automobile problem
means. but they viii some day. ri
IS one Of the biggest questions that we
have had to settle for a long while,
and believe the day OF reckoning will
come Sooner than expected"
The same view IS taken by other
financicrs- As these men are I'm po-
sition 20 know what Is going On 50 far
as the borrowing OF money is con-
cerned. perhaps the danger from this
source is not overestimated. But cap
ital is always timid. and e may be on
account OF this timidity that the auto
mobile craze IS viewed with alarm.