The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-05-15

Of merchandise in all the various chan
nels Of manufacturing and distribution
that from the mill down through the
various handlers end with the retailer.
When the Improvement which must
eventually come does begin, it must
assume a spectacular impetus, all the
more active because of the accumu-
lated demand.
This country is not one to stand
continued depression. It's natural re-
sources have as yet only been scratch
ed; its farms and it's mines produce
each year a volume Of new wealth that
cannot fail TO prove invincible i'm the
direction Of encouraging enthusiasm,
energy and progress. And this new
wealth constitutes the fountain head
of natural cycle of development that
! applies TO ali branches of finance, trade
and industry. Depression under such
! circumstances is largely "A matter OF
| temporary sentiment. In dull times
people prepare for curtailment and are
not inclined 10 any way risk their'prn-
cipal, which is their share of the cap
ital that is so necessary for the normal
development of our great country. But
as soon as business and industry be-
gin 10 expand, confidence quickly fol-
lows in the wake, and it does not take
long for the savings of the people to
seek employment in the security mar
kets, and thus provide the capital
which our railroads need for their
proper upkecp. improvements and ex-
tensions. The railroads i'm their turn
are by far the largest customers of
the iron and steel industry. When that
industry in sequence becomes active
and profitable. the natural order of
events is for these favorable develop
ments TO spread automatically To all
the other branches of the financial and
industrial family. The financial up
heaval OF 1907 started more especially
rs the result of the inability of the
railroads to obtain the necessary new
capital To finance the gigantic i'm
provemcnts that under the stimulus of
the unprecedented period of industrial
and mercantile activity was then in
progress. TO a lesser degree the cur
rent recession I'm business must also
be attributed TO the indisposition of
our railroad managers to go into debt
to purchase supplies i'm sufficient guam
titles 10 keep our iron and steel mills
fully employed The increased cost of
operation, especially of labor made il
necessary for the railroads to advocate
and depend upon higher rates for
transporting merchandise and their
failure to obtain such increased rev.
onue came as a blanket upon invest
ment sentiment. However, there is al
ready strong evidence Of a reaction in
what is popularity termed the high cost
of living and this must eventually
reach railroad operation. Food and
raiment are much lower, iron and cop
per are cheaper, and labor, while
maintaining the high wage scale, is
nevertheless much lower per unit OF
measurement, since, under current con-
ditions. there is degree of direct eff
hciency that means more work for a
.dey's pay. When there Is not sufficient
work for labor. IL Is the idlers and
the inferior workmen who suffer; thus
there Is constant incentive for each
man TO do his utmost TO hold his posi-
ton. In the long run the failure of
the railroads 20 obtain higher rates
viii necessarily initiate In favor Of
shareholders for there is sufficient in
genuity In our railroad management TO
adapt their affairs TO compulsory con-
ditions. To certain extent our rail-
roads were imbued with the spirit of
extravaganza that comes so easily
when boom times are with us. This
extravaganza will now be curtailed. Ia
Dor has received necessary check and
the railroad situation as a whole may
be regarded as having entered upon a
much sounder stage, which can hardly
fail TO inspire confidence among in
vestors.