The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-09-15
A Little Plain Speaking.

wall street journal. AT last an
American returning from Europe
gives out an interview which is no,
made up of assurances that "the
country is all right" that we do not
need to take ordinary business pre-,
cautions, such as the rest of the
world finds imperative, because our
resources are so boundless, and other
patriotic flubdub Of the same kind
which would be merely funny if ii
We're not so dangerous. It is to be
presumed that with modern facilities
visitors to Europe can keep in fairly
good touch with conditions here. but
apparently distance lends enchant-
ment to the view and the result is a
monotonous chorus of praise without
word of urgently needed criticism
Victor Morawetz is an authority OF
different character and if we could
leave the adjustment of our curren-
cy and banking systems to such ex-
perts as he, we would have more
cause TO congratulate ourselves upon
our enormous natural advantages Mr..
Morawetz says:
The recent unsettlement of BUSH
ness conditions and fall in Stock Ex-
change values were not due to the
prospect of poor crops The reduced
wheat crop in the northwest was not
a legitimate reason for one-twentieth
part OF the fall in the market value
OF railway securities alone. Nor can
the fall in values be accounted for by
the operations of spectators desir-
ing to depress the market, or by I'M
reasoning fears on the part of the
specializing public. The fall in values
and the unsettlement of business
conditions were due to underlying
causes entirely beyond the control OF
speculative influence
These causes are stated in some
detail in the New York Times of
Sunday. After laying stress upon the
necessity for establishing relations
between the corporations, the admin
istration and the consumer of per-
manent character, where each shall
know his rights and limitations, Mr..
Morawetz places his finger upon the
underlying cause for the present un.
easiness. This is the enormous alb.
sorption of available free capital in
construction work OF all kinds, coupl
ed with unparalleled extravaganza
No wonder this authority says:
In my opinion, we must look for.
ward to period of diminished bust
ness activity and reduced profits I'M
til we have readjusted prices and ex
penditures, and by economy and
thrift have accumulated an adequate
amount of available capital"
This is what we have to face nd
the sooner we talk about the means
of meeting our obligations the better
Let US make up our minds that even
bumper crop of corn will not re
move the urgent necessity A New
York daily which has been gratituti
ously bulling the stock market for
some time past sapiently remarked
on Monday that Wall Street is the
only blue spot in the country
We seem to have heard that utter
ance before in various forms. In one
form it is applied by unscientife
people to the barometer, when ii
shows an alarming fall without q
cloud in the sky. Later the same OBJ
servers are wondering if we shall ev
er see fine weather again. The bar
ometer rises in due course, but We
are not told that Wall Street is the
only blue spot in the country" The
same critics declare at such times
that stocks are being manipulated
in order to unload them"