El Paso herald. (El Paso, Tex.) 1901-1931, 1911-01-04
Annual Review OF Finance,
Industry and Commerce
(By Henry CIews.)

ton through cutting prices sufficiently
to invite orders. The policy of our
steel managers has been to maintain
prices by restricting output; falla-
cious theory. which, adopted alike by
organized capital and organized labor,
is interfering with natural recupera ton
and confusing an already unsatisfacto-
~ position. Some improvement viii
probably be observed in iron when the
railroads again come into the market,
as seems probable at no distant date
Another important industry which is
also passing through a period of stress
is the textile trade. Our cotton mills
have been more or less embarrassed by
high priced cotton and high costs of
production which are tending to re-
strict consumption. While our own
mills are seeking for concerted curtail-
ment, north and south, British cotton
mills are actively employed supplying
the markets of the world from which
we are excluded by our present high
costs. Our wooden mills are also feel
ing the effects of high prices and con-
seQuSnt depression, to which is added
a state of. nervous anxiety regarding
coming changes in the tariff. In other
branches of industry there is also les
sened activity and manufacturers are
resisting the downward tendency as far
as within their power.
Real Estate.
Real estate, usually the last to wit
ness the effects Of a boom. is much less
active, not merely in New York. but in
all parts of the country. In this city
the reaction~is manifested in the grow
ing number of unoccupied apartments
and lofts, also in the sIagAIt:on in
high priced property and acreage deals
One of the largest mortgage concerns
in this city reported a falling off in its
own business from 5000, 900 in 1909
to $50,000,000 in 1910. In the interior,
especially at the west. there has been
great. initiation of land values based on
recent large farming profits AS the
latter shrink the effect upon land val
ues must work itself out. a contingent
cy emphasized BY the changed attitude
of western bankers to all real estate
operations.
Finance.
A few words only are necessary on
the financial situation; this topic being
covered in our regular weekly advices. |
Wall street seems. as is its custom. to
have largely discounted this business
reaction. There has certainly been a |
greater fall in securities than in COM
and because of this adjust
ment the stock market is in a sounder |
position than year ago. A decided i'm |
provement has taken place in both the |
political and monetary outlooks
As to the monetary outlook. dull |
trading. declining prices and diminish |
ed speculation all make for easy rates |
In all probability money will become |
glut at this center unless business I'M !
sxpectedly improves. Our banking po- /
iition is perhaps the most unpleasant |
element in the entire outlook Ac- |
cording to controller Murray's figures /
the loans and discounts in the United /
States at the time of last report-Nov. /
10, were IS, 450. 600, 900. the largest on
record This was an increase in IL /
months of 1901, 100000. accompanied by !
IN increase in deposits of only $751;
100000 and $50 100000 in capital !!
stock. This plainly shows overstrain. |
n case of emergency the banks could
now secure no assistance from the
treasury; they would be thrown large
Y upon emergency currency under the
act, and unfortunate
Y the bonds under this measure are
lot held so as to afford general relief.
The only cure, that of forced contrac-
ion, is now at work.
Foreign Situation.
Outside of the United States the year
las been one of peace and progress
European nations are
rosperous. This is especially
rue Of Great Britain. which is en-
Dying a record-breaking foreign trade
is also fairly prosperous, and |
rance is steadily accommodating wealth
through thrift and industry.
There is no such depression abroad
anywhere as exists in the United
tates, for the reason that no country
as gone ahead 70 rapidly and none has
cached such a high priced level. and is
therefore, less subject to reactionary
influence It remains to be seen wheth-
r we shall pull Europe down or Eu-
ope will pull US up by investing Its
urplus profits in the United States.
Country Needs a Rest.
Let it be admitted that the general
ituation industrially and commercially
4 the United States is not entirely sat
sfsctory, a. that there is reason to
xpect further period of settling
own to a lower level The only sensi-
lie attitude towards this tendency is to
relcome it as a wholesome return to
he normal. IF this readjustment-for
t present it is nothing more and there
re no signs of panic-can be accom-
lished in a gradual and orderly fash
On, without sudden arrangement the
ountry will be vastly better off.
Because We have scared too high, be-
ause the buying power of the people
as been exhausted temporarily by ex-
apital, the only cure is for commodi-