The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1913-12-06
The Country Financial Condition

A prominent Utah banker, J. E. Cosgrif, who is we'll known
In Nevada, has been making a study Of financial and business con-
ditlons throughout the country and he finds them anything but
satisfactory. In analysing the causes for present conditions in the
financial world Mr. Cosgrif ascribes the country's greatest troubles
to extravaganza and declares that the people will one of these days
ind that they must save money instead of spending it, In a state
ment that he has given out the banker summarizes the results of
his Investigations into the causes of the financial depression and
he says:
This countrys period of misrepresentation municipal,
corporation and personal-that has extended over the last few years,
is automatically nearing a close, in my opinion, and a reimbursement
of financial, social and labor conditions seems imminent
There is a feeling of apprehension apparent in eastern banking
and business circles that cannot be explained by tariff fear, or alarm
over proposed currency legislation. The cause goes deeper and, to
to my mind, strikes straight to the root of the situation-iti is a
rapid crystalizing of the realization that the people of the United
States, from b~ondhoders to hod carriers, have been spending too
rnuch money, and that this procedure cannot continue much longer
without precipitating trouble.
l should like to have it thoroughly understood that 1 am not
talking "panic," but it would be folly, as we'll as untrue, to state
that conditions in the business world of this country are satisfactory.
II the truth cannot be told regarding such a situation a now seems
at hand without unnecessarily al ,rming the business men and labor.
then commercial life in the United States is indeed on a most un-
stable basis. 1t is a situation that we must meet with open eyes.
Closing our minds to conditions that already exist and those condi-
tions which seem to be approaching will avail nothing.
l have visited New York, Chicago. Washington, Boston, Phna
delphia, Baltimore and several other cities. In each place the
bankers, merchants, manufacturers and construction men with whom
l talked expressed the conviction that a period of readjustment for
both capitalshc and labor interests is not far distant. At present
labor is well employed and this i, likely to continue for some time.
As long as this prevails, merchandising will continue in heavy vol
ume and merchants will have little to complain Of
The unrest is higher up. Everyone knows. of course, that
stocks of all kinds have been liquidated of late to a considerable
extent. There has been a marked depreciation in the market value
of the shares of many companies, particularly of textile corporations
This is beginning to he felt by the men who are rated as wealthy.
They are spending less money than they did a year and two years
ago. Such interests ire not investing as formerly in building and
construction operations. The volume of work already under way,
however, is sufficient for the present employment of the greater
portion of available labor in the country and for that reason very
little of the uneasiness prevalent among the monied interests hasI
made its appearance outside the latter circles.
This added cost of doing business is a boomerang on the buy
ing public. Merchants have not been making exorbitant prices
As fast as their cost of doing business increases they add it to theI
selling prices of the goods they handle. If a man and his ~neighborsI
made it necessary for a grocer TO put on an extra delivery wagon
they pay the operating expense of the outfit and the initial cost long
before the year is up.
And so it goes, on up through the various classes of business.
We have demanded more service; we have received it and we have
paid for it.