Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-07
Bears Helped Abroad.

held. Asia was begging accommodation
at every important banking center. Some
European pinches were so severe. as in
Germany's case, vanity had to be thrust
ASIDE to make pleas for financial help
effective. Tens of millions of American
| money went abroad hurriedly last fall
for German relief alone.
Raiders Predicted Evil.
The German example was an open ex-
ample-there were others almost as con-
sequential which were able to escape
publicity. Thus this country had not
merely to handle it's own assessments.
but was drafted into international trou-
bles. Little wonder is it that there was
growing and grilllng. Vast achievement
1t it-amazing even to the edge of the
miraculous-that at the close of such
a twelvemonth. there could show and
proceed developing. such stout-hearted-
ness as this new years first week Is
able to exhfbit-does exhibit.
Much evil was predicted by the profess
sional bear raiders of the market to come
to pass at the start of the year. Fac
to default Financial complications of
sensational sort were to dominate.
The record actually shown is encourag-
ingly different. Two conspicuous stock
exchange properties have fallen down:
Upon the other side appears long list of
betterments. Dividend disbursements
made by American corporations at the
start of 1912 surpass by far any figures
ever hitherto recorded. Blue theories have
not stood the test Of facts. And there
begins to show, right in Wall streets
center. public realization of what is true
what Is inspiriting.
1t is idleness to attempt to believe, how
ever, that we are quite yet arrived at the
millennium, for there are some elemental
things which persist in being trouble
some. What is to be appreciated Is that
the country has indubitably moved for
ward despite all the proclaimed draw
backs. It is essential that fair observers
take cognizance of varied qualifying fac
tors operating in special quarters, illus
trated effectively by what in survey OF
the situation is pointed out by Vice Prest-
dent William Ingle Of the Merchants Ma
tional Bank of Baltimore, from whose
personal letter / quote:
Opinion From Baltimore.
Baltimore is more CLOSELY related in a
large way to the southern trade than
that Of other sections. The south for
three years has had the benefit of large
crops Of cotton. Much Of the money has
been used in a very general betterment
of local conditions. as also as a basis for
further development in manufacturing
lines and not SO much in the i1quldauon
of old outstanding debts. The result is
that the south as whole at the moment
probably owes. as much money as mas
ever been the case, which means that its
credits are very widely extended and
frequently in fixed directions. The pres
ent holding material share Oh the
enormous cotton crop Of 1911 has made
the collection of maturing bills slow and
difficult. AS consequence many interior
smaller banks dominated by AGRICULTURAL
interests have been unable TO llquldate
bills payable, and in fct under pressure
lnl Of borrow
more money. Failing the liquidation OF
cotton, many such banks will find 1t diff
ficult to obtain fresh funds for seasonal
needs the coming spring.
1.-The dominant southern manufactur-
ing industry is. of course, cotton mill
ing This business has been most un-
satisfactory for more than two years:
Only comparatively small number or
profit. while a great number OF them.
particularly those improperly financed.
have had hard shedding. The public since
the panic has been trained In economy
as far as the necessities OF life are CON
cerned. The distributors. appreciating
this and other conditions, have bought
most sparingly in all lines. which
means low stocks and hand-to-mouth
conditions. These are not apt to improve
until the country can feel that congress
and the courts will let business alone and
permit those engaged in it to make plans
for the future, near or remote, with tne
assurance that at the time of their full
fillment underlying law and conditions
will not be materially changed.
South Inspiring Confidence.
In candid quotation of influencing
facts like this there Is value exceptional
just now; but such statement Is far
from spelling pessimism. The south
stands superior to an unusual crop stu
alton in way that attests the solidity
Of that intrinsic prosperity which has
come from intelligent developments multi
piled through the past score OF years.
There Is basis only for confidence in any
quarter where. as Mr.. lngle points out,
SO much money has been used in a
very general betterment OF local condi-
tons, and as a basis for further develop
ment in manufacturing.
Southern crop moderation was not
unique last year-but isn't all this now SO
general consequence the effect is ap-
proximately discounted? From Kansas
City. by way of instance, I have this
from President J. F. Downing OF the
New England National Bank:
Business in this territory is somewhat
behind that Of last year. owing to short
crops. The extreme drought OF last July
ton Of the country about 80 per cent.
This reduced the purchasing power Of the
consumer, and has besides brought the
farmer to practicing rigid economy until
another crop can be realized. At this
time the outlook never was SO good for
a winter wheat at this season of the
year. We hear a great deal of the gen.
eral decentralization Of business on &C
count Of political agitation, but 1t does