The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-09-25
In Open Letter Major
Dooley Gives Views of
Financial Outlook.
Blu S / N EES S M EN-
ORA WING In HORNS
frequent Revision Of Tariff, In
fluence Of Railroad Legislation,
1 High Cost of Labor and Liv-
ing, and Political Outlook,
Among Reasons
Cited.

J. 4 + + II
While admitting that conditions are
has taken place within the past
twelve months, Major James H. Doo-
ley. a capitalist and banker OF this
fity, in an open letter to Henry Evans.
OF New York City. on the financial
outlook, predicts great fall in
prices within the next twelve months,
when banks, bankers and people who
have the money will buy back the
stocks they have been selling, and
will be ceiling from this time until
the public becomes alarmed and un-
loads stock regardless of value. Ma
5or Dooley gives many reasons for his
expectation, in which he admits that
he hopes he may be disappointed.
The full text of the letter follows:
September 22. 1910.
Dear Mr.. Eyans,--f am in receipt OF
your esteemed favor, in which you
pay me the compliment OF asking my
views. I'm. extenso." upon the BUSH
ness outlook. 1 cfeergully give them
TO you for what they are worth. pre-
missing that am not otherwise in
terested than as an investor.
Unparalleled ExtravaEance.
First: l will call you attention to the
generally accepted opinion that
great and prolonged boom in business
and advancing prices should be found
ed upon the savings of the people or
accumulated capital After the panic
in 1907 there were. generally speak
ing. no savings.
There was blu. brief period OF
ECONOMY. and in few months the
country rushed on to a career of ur,-
lparslleied extravaganza. which was
continued almost undated, to the
present time. This extravaganza and
the ensuing boom In business were
greatly stimulated by, the extraordinary
advance in the price of securities on
Ihe New York Exchange. which conn
lmenced In the spring OF 1905. and may
DE said to have eliminated in the fall
sbf 1903. In my humble Judgment. this
boom in stocks vas hurried % nand
carried too far by the great capitalists
and SPECTATORS who. during and after
the panic OF 1907. had loaded up at
very low prices and were eager to
get their profits before. the Inevitable
advance In wages and cost of operating
Legislation of Congress should throw
"a wet blanket on their market
y influence of Railroad Liquidation.
Second: IN the summer OF 1908. Mr.
Taft formulated his program for re-
'gulating the railroads and additional
The great capitalists who
were manipulating the boom commenced
then to unload. and. in my opinion.
itave been pursuing that policy. when
lever the market would allow. / think
they will continue to do so until re-
turn of clearer skies in the financial
and political world.
Third: Let US look at the presen.
financial and political situation. TO
begin with, our foreign trade. which Is
one of the most. IL not the most. Inn,
lportant factors in the national pros
.perity, Is in about the worst condition
4 have ever known In the many years
during which have been an observer
and student Of business conditions.
This condition Is not likely to be tenn
Sporary, because It's causes are not
Temporary, 1t is caused partly by the
great Increase Of our consuming popu-
-lation. without proportionate In
crease In production. which prevents
our exports of food from increasing
An proportion to the increase of our
Imports; partly by the advance In
wages and consequent increase in the
cost OF production, which prevents our
fGSpOELS IIOlll FsS0ihpStAh6 sAOLGh6AA
markets; partly by the extravaganza
of our people. which has enormously
increased our Imports of foreign goods.
Such conditions are not a solid basis,
for expanding business.
Cost of Living.
Fourth. The wages of labor and
the cost of living are too high in.
lproportion to their level in other coun-
tries. with, which we have to com-
pete for business. The panic of 1907
should have brought about readiust-
ment on those lines. The principles
{of political economy in that regard
were overruled. and that readjust-
iment remains to be made. 1t will have
to be made, and 1t can be done only
after or during a prolonged depres-S
sion In business.
Iron and steel, the generally recog-
nized barnmeters OF business pros
perity, as we'll as the cotton trade.
are In very had shape, and employees
are already hainesthrown out by the
thousands Tile railroads. which are
the largest class 8of consumers anc
purchasers in this country, arc cutting
down expenditures, and are not even
trying to sell bonds. This msens that
all improvemerts and extensions are
to be indefinitely pcstponet ana more
thousands of good men thrown out
of employment In this connection,
the question presents Itself Will the
Commission grant the in
crease OF rates they ,,emanu? AS a
reason why they will net. suggest
for your consideration The follow
ing:
railroad situation. l8
ts Only "a few short months ago Mr..
,Tafts administration was quite UNI
popular; was, IN fact. ttrembltry on
the verge of failure. At9that time the
law fully recognized the right Of the
railroads to advance their rates. They
rave nnttoa that thav xpois1d ,,a,,i,l