El Paso herald. (El Paso, Tex.) 1901-1931, 1911-01-04

New York Jan -2=We are entering
1911 in a much soberer mood than we
entered 1910. Then optimism was the
prevailing spirit; now conservatism is
the rule everywhere, tinged with oc-
casional pessimiSm. Whatever point Of
between conditions now and a year
ago. particularly in the east, which as
the financial center Of the country is
always first to feel reactionary influ-
ences and first to take the initiative,
either in forward movements or re-
trenchments. For six months at least
contraction has been the order Of the
day and there are no indications as yet
of this tendency having exhausted it
self
As agriculture is still the country's
mainstay, let US first look there in aud
iting our accounts. The value of our
crops in 1910 was given by the depart
ment of agriculture at $S,926, eco, coo,
the largest total on record. end $780,
600, 900 more than year ago. Roughly
speaking, the values produced on our
farms have nearly doubled during the
past decade. According to secretary
Wilson, our farmers have produced
SO, 600. 100000 Of wealth during the
last II years
Our foreign commerce for I months
Of the. calendar year aggregated s3,-
062, 600, 900, against s2.990. 100000 during
the same time in 1909; our. imports
amounting to Slips, 000, 600, or $S9 Co.,,
900 over last year, while our exports
were S1,637, 000, 900, OF SS1, 200, 00O more
than year ago.
Railroad earnings on As roads from
January 1 to November 80 amounted to
S712 OOO, 600, against S644,OO0, geo last
year, an Increase OF over IL percent
III in,
for the same II months were s149,7Ss,.
100000. against $40. 100000 the
year before.
Pig iron production in 1910 was esti-
mated at 27.200 600 tons, compared with
25,7S0, 600 tons a year ago. At present
about one4half of capacity is being
utilized.
Copper production amounted to l.
454000000 pounds. compared with l.
4e7 100000 pounds a year ago.
Coal production reached a total Of
nearly 500,000,00c tons. compared with
4z0. 100000 tons last year.
New capital issues reported for the
year aggregated s1,51S.O0o. 600. against
1851. 600. 600 year ago.
New corporations of $1,000, 600 and
over created in the leading states ag-
gregated $3.50, 000, 600 compared with
s. .566, 600. 600 last year
Bradstreet's Index figure was 8.S7 at
end of November, against 9.23 at end Of
january. the high record point
At first sight these figures regarded
rs a whole indicate as large a degree
Of activity as a year ago. To some ex-
tent, however, they are misleading, be-
cause rejecting past and not present
conditions. 1t is well known that val
ues have been highly inflated in every
direction, and that gains in quantities
or volume are not always as large as
would appear. A bumper corn crop
naturally caused a sharp drop in prices
which will offset the gain in yield
There has also been a sharp decline in
wheat, resulting from the larger crops
IN prospect abroad. Cotton has been
maintained at high level because of a /
crop inadequate 20 a growing demaad. |
Should the tendency of agricultural /
prices continue downwards, as is not |
improbable we may hope to see at /
east a temporary return OF our foreign /
rade to the normal condition of a large |
excess of exports.
Railroad Earnings.
AS to the gain in railroad earnings |
-eferred to above, that was probably I
more than offset by the large increase !
n expenses which is justly causing our
abroad managers such serious con-
ern- For example, the October rercr. !
f the interstate commerce co.ErIissfnn
eported a gain of 50, 100000 in earnings
nd an increase in expenses of S13, 700,-
90, showing a loss in net earnings fer
hat month of about ST. coo 900. which
q view of the increased capi- aii zation
f the railroads was anything but a
result These increases in
expenses arise chiefly from concessions
lade to labor; concessions which could
e i'll afforded and which managers are
ow trying to pass on to shippers by
occurring permission from the inter-
tate commission to make some ad-
ances in rates.
The tremendous amount of new cap
tai issues. which has been going on
or several years, is significant and I'M
uestionably has much to do with the
resent state of inertia in the finan-
iaI world. So heavy an increase in
he offerings of new securities, coupled
nth the diminution of savings through
Universal extravaganza in business and
I the home largely explain the ex-
austion of investors and the over-ex-
ansion of credit.
Industrial Depression.
Statistics do not as yet show the full
xtent of business retrenchment. A
ear hence, when We may be on the
Ugh road to recovery, the picture will
e more plainly seen. Difficulties Of
ne iron trade have beyond question
cen aggravated by the unwillingness
those in control to meet the situa-