davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1918-01-06
Stock Exchange Pancs Of Last Fall Teach People Of the Mkado
Realm That War Prosperity Gives Rise to False Sense Of Well
being and Pofteerng Does Not Serve Solid Economic
Foundation for the Upbuidng Of Nation

SUNG dlsaster--eXtended bank loans,
great issues Of new industrial stocks,
less interest in the small economies Of
operation, less efficient labor. higher
costs of materials, almost doubled
living costs, and, in general, a much
lower moral standard, set by some
OF the new profiteers and followed, as
closely as incomes would allow, by
their satellites, ami even by the
workmen themselves. Old frugality
soon went by the board. The mari
kins, "those whose gold dropped from
the trees" became very careless of
that which was so new to them. Some
Of the more boisterously inclined Of
the older rich Joined the fracas. Ho-
tel ]obbies were crowded after mar
ket hours. Nightly oanquets were
given at the large hotels, sometimes
several in one night. Expensive
geisha ladies usually furnished en-
tertainment for these new connois,
scurs. Thin, ';plaintive" voices, with
thinner music, could be heard gratis
hy weary travellers far into the
morning hours. No cheap rice brew,
known as sake, was opened at these
big affairs. The most expensive
French champagnes were none too
good. A tip Of 10000 yen, equal to
$1,000 at prevailing exchange, was
said to have been passed out at one
important narikin affair. The SER
wants, in turn, drank no sake, and
did no work, for some time there,
after,
New-York tribune., 1918-01-06

lection to the public. The Japanese
business code was drawn up in 1889
by Frcnchman and was based
lcsY~ly upon German practices. Why
.'c intelligent and cumulative Japan
cse did not copy the French code.
which puts the protection Of the pub
lie at1vc every other consideration,
I 30 not know. Possibly they thought
The German laws strict enough to Sc
cur~ tie public against unreasonable
exploitation by stock manufacturing
cl;qucs,. and at the same time found
the laws adaptable to the needs of
ra,idly growing country in which
great encouragement to capital was
desirable.
The stock Of the Japan Steamship
Company, the great IN. Y. X,
which reaches almost to the ends of
the earth, has been selling at about
600 per cent of par, paying 70 per
ceat per annum; Yokohama Insur-
ancc, $50 per cent, distributing 20
per cent; Kanegafuchi Spinning, 400
per cent, dividend 40 per cent;
Niitaka Sugar, 800 per cent, paying
42 per cent; Nippon Brewery, 25O
per cent, with % per cent dividend;
Iwaka Coal, 800 per cent, with 80
per cent; Toxic Tacks, 250 per cent,
with 25 per cent; Japan Paint, 800
per cent, with 20 per cent, and Shi-
nagawa Brick, at about 275 per cent,
paying Is per cent These are almost
panic prices, after slight recovery.
Thus it can be readily understood
why Japan has felt so rich for the
past three years. She is one of the
great manufacturing nations, far re-
moved from European conflicts.
Enormous war profits have trifted to
her shores.
With this visible prosperity, au-
thenticated by tremendous bank de-
pesits, prolonged advances in the
stock markets and huge dividend dis
turscments, there had come a false
sense Of wellbcing. Concomitant
with these surface indications of
prosperity were the potentials of en-
New-York tribune., 1918-01-06
When the Gushing
Gushers Gave Out

Oil trade interests assert that the
war has been only one of several
factors responsible for the sensa-
tlonal rise in crude petroleum and
petroleum products prices. Users of
gasolene will recall that in 1914 that
commodity was selling in the market
at 13 to Is cents a gallon. Since then
the price has risen to 25 to 80 cents
a gallon. But the situation in the
crude oil market in 1914, before the
outbreak of the war, was far differ
cnt from what it is at the present
time. In that year crude oil could
be bought in Oklahoma at 25 to 40
cents for a barrel, for the newly dis
covered Gushing pool was pouring
forth rivers of oil of a remarkably
Ligh grade. AS long as the flood Of
the Gushing crude continued low
prices prevailed. But in August
1915, the output of the great Cush-
ing pool dropped almost overnight
IRON 100000 barrels a day to $4,000
barrels day. The supply in the
earth at that point gave out. I'M
medlately the price of crude oil be-
gan to climb as refners began pay
ing premium for Gushing grade.
Inc market price quickly jumped
rom 20 cents to $1.55 barrel. Sub
sequently the price fell off to 80
cents as production improved but
when the Gushing pool had again
subsidized and no new pools were in
prospect to sustain the output, the
price of crude started climbing, and
New-York tribune., 1918-01-06
Overlooking the
Speculative Stomach

Bear selling was, Of course, coin
cldent with the collapse but was in
no way responsible for bringing it
about. Publicists and reformers in
Japan did not rush to make the
short seller the target for shafts
they dared not aim at the real origi-
nators-thc big industrial stock
manufacturers! After The pro,
longcd imitation Of stock issues. of
bank loans Oh collateral, Of commod-
1!y prices, and of everything else, it
was quite understood by intelligent
japanese that the stock market was
bounded to collapse sooner or later.
| believe that some OF the most con-
New-York tribune., 1918-01-06

highest level in more than forty
years, in other words, the highest
since the industry reached a mod
crn basis of production. Penn
sylvania crude has lately been sell
ing in the market at S3.75 a barrel,
compared with $2.S5 a year ago and
$3.50 a barrel just prior to the out
break of the war Other grades of
crude oil show corresponding in
creases in market value.
These high prices have served to
stimulate development work in the
various fields Of the United States Or
an exceedingly active scale. For in
stance, during the month of Novem-
ber a new high record was estab-
'ishcd for work Of this character,
there being 4,73S wells under process
of drilling at the close Of the month
The total number Of wells completed
III the country in the first eleven
months of 1917 is put at Fl 1902, COM
Jared with 22,869 in the correspond
ing period Of 1916, the principal rea-
son for the falling off being the high
cost of materials and labor neces-
sary to the development of new prop
erties. 1t is expected that the work
cf opening up new producing wells
will continue at an increased rate in
1913, for the oil industry has never
faced period Of crude oil shortage
that stimulated activity has not fol-
lowed with a consequent increase in
production.
New-York tribune., 1918-01-06

completely drilled and it's boundaries
have not been fully determined
there is little basis for believing that
new territory will be developed in
the future with sufficient rapid;ty
to more than offset the decline in
production Of the old wells.
The Gulf field includes large
number of detached oil pools asso-
clated with saline domes in South
eastern Texas and Southern L.ouisi-
ana. Owing to the number of in
dlvldual pools involved and to the
peculiar mode Of occurrence of the
oil the production in this field is ex-
tremely erratic. The future of the
field is conjectural
Huge Reserve in
Shale Deposits
The Rocky Mountain field includes
'll areas of petroleum production in
Colorado, Wyoming and Montana, as
we'll as areas Of prospective oil
production in Utah and New Mexico.
rs a contributor to the supply of the
'ountry this field is in it's infancy,
Us production prior to 1912 aver
ging considerably less than 1,OO0.-
600 barrels year. Since 1912 it's
PRODUCTION has increased rapidly,
amounting to 100000 barrels in
t9l6 as a consequence of active op-
'ratlons in Wyoming and Southern
Montana. In addition to large areas
# prospectively favorable but as vet
infested oil territory, the Rocky
Mountain field includes a vast acre
age of easily accessible oil shale that
averages in petroleum content De-
tween fifteen and sixty gallons to
the ton. 1t is estimated that in
Northwestern Colorado there arc
Dhlrty-nine townships, 1,4OO square
miles, underlain by an average
thickness Of tifty-three feet of shale
beds three feet or more in width
which, according to field tests, will
yield on distillatioif an average OF
twenty-five gallons of crude oil to the
ION OF rock. The result of field in
'estlgations conducted by the United
'tates Geological Survey is that
these shale areas constitute latent
reserve of crude petroleum, the pos
ible yield Of which is much in excess
of the past and future supply of pc
troleum obtained and obtainable
rom wells in the United States.
The California field embraces all
areas of oil production in that state.
This state has yielded more oil than
any other. Its maximum production
IS believed to have been reached in
l914, with an output of about 1OO,-
100000 barrels. Its productive areas
are believed to have been essentially
outlined and their periods of flush
yield have passed
The Alaska field is at present un-
important as contributor to the
petroleum supply of the country. 1t
now consists of few PRODUCING
wells. Further drilling is necessary
to determine the presence or absence
of a valuable pool Of oil in this dis
trict.
Crude oil prices arc now at the
New-York tribune., 1918-01-06
Government Forbids
Flagrant Speculation

In a financial and commercial way
everything was skipping along mer,
rily in Japan, until early last
September, when the government
suddenly promulgated an ordinance
fcrbidding fragrant speculation in
certain commodities. This ukasc
upset many neat profteering plans.
There was a sudden falling off in the
production of raw securities-an in
dustry which had recently become
New-York tribune., 1918-01-06

and. in the current year there will
be completed 118 new refineries, ad-
ding a capacity of about 35,O0O,-
100000 barrels year. From these
figures it is plainly seen that the
problem of gasolene supply is nos
one of lack Of refining capacity but
rather one of increased production
of the crude petroleum.
Output Will Grow
AS Consumption Increases
Despite the fact that consumption
demands of the country are running
ahead at the moment of the actual
production of crude, necessitating
draft on the reserve stock, there is
little fear among the OF! men over
possible shortage. AS II. G. James,
an oil expert, writing in "Thc Oil
City Derrick" points out, it has
been habit for half century to
feel constantly that the supply of
crude petroleum was on the point of
exhaustion. Every time there has
been draft upon stocks a cry has
gone up that the world must look
for something to take the place of
mineral oil. And always about the
time everything was surely going to
the bow-wows, producers became ac-
tive with the drill, and presto! a
change took place A new flood of
crude came rushing upon the sur
face of the earth and the output
once more reached new record.
No one knows how much oil yet re-
mains in the bowels of the earth.
but every time necessity cries out
for increase and man goes forth in
search the earth yields in propor-
ton.
''Man has been taking fish out of
the seas for thousands of years."
continues this authority, land as the
population increases his catches
must be larger, but he goes on
fishing and supplying his needs.
The oil man is doing likewise. If
we had produced as much oil in
1900 as we are producing this year
it would have sold for about 10
cents barrel. If we were to pro-
duce as much oil this year as we no
doubt will in 1887, the market
would probably be down to 20 cents
barrel, for have not the slightest
doubt the production is going to 90
on steadily increasing as consump-
ton requires, and it probably will
not increase any faster save for
brief periods in opening new pools.
The very sections of the country
which now seem impossible of oil
production may prove the richest
when needed There are vast Dos
sibilities in Kansas yet, in Missouri,
in Arkansas, Oklahoma, Wyoming,
New Mexico and Kentucky, and
Alaska holds out for future genera.
tions hopes of wonderful production
Crude petroleum is produced in
commercial quantities in eighteen
states and in the territory of Alaska.
Oklahoma is now the biggest pro-
ducing area, with California second
Taking the country as a whole, the
areas in which the crude oil is pro-
New-York tribune., 1918-01-06

has moved steadily upward ever
since.
Of course the basic reason for the
constantly increasing market pro-
cuction of crude petroleum is found
IN the demand for gasoline for mo-
tive power. In 1915 the refinery
output Of gasolene in the United
States was 41.6OO,OO0 barrels of fifty
gallons each. In 1916 the production
of gasolene was around 5O,O0O,OOO
farrels and in 1917 it has been es-
tlmated at 55,000,000, although the
complete figures will not be avail
able for some time to come. In the
current year OF 1918 trade experts
have figured the production OF gaso-
lene that will be necessary to meet
the requirements Of the country for
home use and for export at between
55,000,000 and 6O,OOO,O00 gallons.
These figures are only approximate,
tut they serve to indicate the rising
curve of production that is needed
to supply the steadily increasing
demands.
New-York tribune., 1918-01-06
Gasolene From
Natural Gas

Another comparatively new source
OF gasolene supply is found in the
treatment of so-called "casinghead"
gas. When Gil is produced it is al
most always accompanied by more or
less gas which ordinarily comes from
the same sand. The gas usually
contains some of the lighter portions
Of the oil itself. Such gas is known
as "wet" gas. and if it is produced
with the oil it IS called casinghcad
gas. BY compressing this gas and
cooling the compressed product
considerable yield of gasolene sob
tained. In 1917 the production OF
gasolene from this source is est-
mated to lave amounted to 4,00O,OOO
barrels.
So far no commercially practicable
substitute for gasolene has been dis
covered or devised. Various expert
nlents have been made with devices
for vaporizing kerosene so that II
can be used as an explosive mixture
in internal combustion engines, pus
so far the thing has not been done
successfully. In the light OF TINS
fact conservation of existing gaso-
lene supplies is essential. Efforts
are now being made to cultiva'e
economy in the use of gasolene anu
other petroleum by-products. 1t nd.
heen estimated that the people o.
the United States could with proper
exercise Of economy save l,oOo"Vo
gallons of gasolene a day wlthou.
interfering with the normal flow %
industry and commerce.
New-York tribune., 1918-01-06
trade authorities, however
much they may differ on the

MI trade authorities, however
much they may differ on the
fine points of the business,
are generally agreed that the. big
fundamental problem confronting
the American petroleum industry
to-day is primarily that of supply.
Nothing is more essential and vital
to the winning Of the war than
petroleum and petroleum products
Gasolene is almost as much of a
necessity under modern methods of
making war as is food for the
armies. There has already been
tremendous increase in the produc-
tion of crude oil to meet the steadily
expanding demands Of war and
peace, yet during the year just
ended the reserve stocks of the
country have been heavily drawn
upon in order to keep refinery out
put of gasolene and other by
products up to the level Of consump-
ton. This cannot go on for many
more months without dangerously
reducing reserves. The only way
the problem can be met, therefore,
is the development Of new produc-
ing properties.
The production story is well told
by John D. Northrup, the petroleum
expert Of the United States Geo
logical Survey. He says:
The principal question is whether
or not the sources Of crude petroleum
in the country can meet the demands
that must be made on them both at
homo and abroad. On the whole tho
outlook is not such as to encourage
optimism. in view of the fact that the
present rates Of oil production and
OIL consumption in the United States
are approximately equivalent and
that the total reserves Of crude ne
troleum held by pipeline companies
and large retineries were depleted to
the extent of nearly 100000 bar
rcs in the last half of 1916. Tho
total surface reserve Of crude pc
troleum in the United States on jan
uary /, 1917. is estimated at 175,0O0,-
OOO barrels, a quantity none too large
TO stabilize conditions in an industry
that requires 25,OOO,OOO barrels of
OIL month for current needs (re-
serves have since been further re-
duccd to around 160,OOO,O0O barrels).
Output Must
Be Expanded
1t is the opinion of this authority
that if normal demands for petro-
leum products can be barely met by
current production Of crude oil sup
plemented as to gasolene supply by
the contributions of the casing head
gasolene industry, the abnormal de-
mands occasioned by the entrance
of the United States into the world
war render imperative an immediate
Increase in production.
A. c. Bedford, chairman Of the
board Of directors Of the Standard
Oil Company Of New Jersey and
chairman Of the petroleum advisory
commission Of the Council of Ma
tional Defence, recently summed up
the situation from the viewpoint of
consumption in this fashion:
We are to send great armies TO
New-York tribune., 1918-01-06
| to the psss3e HI,

Gently referred to the pess3e 4 IA.
nation as economic illiterasessi
wonder if this is true? am mr.
that every one would like to lear,
something of economies and finane.
if the lessons were made easy. ana
If they did not interfere too much
with important pleasures. Perhan.
bitter experience will prove the be.,
teacher. Deep thinking sometime.
follows adversely. But would it mt
be far better to take the bull by tn.
horns and the bear by tho neck and
rope them in? They have BEEN
roaming wild throughout cverv.
mans land. Both bull and bear hav.
been so badly bitten that under kind
masters they would become as docila
as Androcles's lion,
New-York tribune., 1918-01-06

which are attaining considerable Sue
cess along this line. In 1915 the
Bureau Of Mines realized the impor-
tance Of this. and one of its chem
ical engineers, DR.. Walter f. Ritz
man. discovered a "crac!sing, pro-
cess by which gasolene, as we'll as
benzine and other desirable by
products, can be made. from kero-
sene and other crude oil distillates.
In 1915 100000 barrels of gasolene
were produced by the cracking proc
ess. In 1916 the figure had grown
to 100000 barrels. In 1917 an
other substantial gain was recorded
although the figures are not vet
avaliable. TIE cracking process has
been described as taking petroleum
residue after the gasolene and kero-
sene have been distilled off and
treating this residue to various proc
esses, usually with heat and press
ure. What happens is that the
residue is split apart, so to speak,
and some of the broken down parts
are found to be gasolene.
The use of the new processes has
considerably increased the yield Of
gasolene per barrel of crude petrole-
nm. A compilation made by the
United States Bureau Of Mines
shows that the yield Of gasolene in
the first half Of 1917 averaged about
70 per cent, a gain of about per
cent over 1916.
New-York tribune., 1918-01-06
Regulation of Stock
Issues Is Needed

Intelligent regulation by govern
mentS of all essential anG natural
nlonopolies, Of stock issues and ~
stock markets, has never yet hurt
the public. Supervision of the issu-
ance and the circulation CT certi6-
Gates Of ownership Of shares is not
such a long step from similar regu-
l&tion Of money certificates. Neithe,
snares nor paper money are actual
wealth, but both are substantial
tokens of wealth. They should be
checked carefully by government
crutineers and should be watched
over while they exist. No one can b.
harmed by such supervision. What
is best for the public will help every
individual III the long run. This il
liitc understood now in japan
which IS not yet too proud to COPY
nost OF the effective legislation Of
older countries. Stricter government
control, particularly Of industrial
corporations and the markets for
sEeir shares, will probably ensue. AS
The japanese seldom do things by
halves, they may decide to copy the
French code almost verbatim. An
era Of great and lasting prosperity.
uninterrupted by periodical specu,
lativc debaclcs of the kind now
known, is almost certain TO be the
!oi OF Japan after the sad lesson ha,
been taken to heart that war
prohteerlng can never build soli(
economic foundation, and shat "ons
who got his gold from the trees" 3,
expressed by the ideogram "nara
kln," often finds that the glitter dis
appears overnight.
New-York tribune., 1918-01-06

duced are assigned to ten major
fields. This division is mainly geo.
graphic, although it expresses to a
considerable degree the differences
III the characteristics of the oil pro-
duced.
The Appalachian field includes all
areas of oil production in South
western New York, Western Penn
sylvania, Eastern Ohio, West Vir-
glnia, Kentucky and Tennessee. It's
productive fields are practically all
developed with the exception CT the
south end, where considerable unde-
veloped territory Of promise has in
the last year been proved to exist
IN Kentucky and Tennessee.
The Lima Indiana field embraces
the areas of petroleum production in
Western Ohio and in Indiana. In
Western Indiana the discovery and
development Of small isolated pools
of oil is expected to extend the date
CT ultimate exhaustion of this fielG
many years in the future.
The Illinois field includes the prin.
clpal area of oil production in the
southeastern part Of Illinois, as vel
as number Of scattered pools O.
small Individual extent in the cen
trail and western parts of the state
1t reached it's maximum production
N 1908 and since then has declined
Aside from minor pools that NAV be
discovered from time to time in the
western part of the state, the pro
cuctive territory in this field is be
lieved to now be under complete de-
velopment.
Mid d-Continent
Yields Vast Supply
The mid-continent field includes
all areas in which petroleum is
produced in Kansas and Oklahoma
This field has been a large contribu-
tor to the petroleum supply of the
United States since 1904, and in the
years Of 1914 and 1915 has fur.
nished more than 35 per cent of the
petroleum produced in the entir,
country. Although this field is be.
lleved to nave obtained it's maximum
annual production. amounting tc
l15,O0O,OOO barrels in 1916, it is ex.
pected to remain the principal con
trlbutor to the petroleum supply OF
the country for many years, as its
productive districts are only partl,
drilled, and its boundaries embrace
large areas of untested and appar
emily not unfavorable territory.
The North Texas field includes =
number Of detached areas of oi
production in the northern and east
central parts of Texas. Considerable
undrilled territory of promise is in
cluded in this field, the development
of which should serve to maintain
production at the present rate fo1
two or three years at least.
The North Louisiana field include,
the areas of petroleum production ir
Cadda, De Soto, Bossier, Red River
and Sabine parishes. individual
wells and pools in this field are 10
long lived, and although the produc
tive area of the field has not beer
New-York tribune., 1918-01-06
Refining Capacity
Is ADEQUATE

The refining capacity is fully able
to provide for the country's needs
if the production Of crude oil is
speeded up. Development of new
properties and new fields has been
going on during the last twelve
months on an enormous scale, but
the new production of crude pc
troleum, while running we'll ahead
of 1916, is still not up to the rate
that the retiners would like to see.
In the first ten months of 1917 the
total production Of petroleum in all
parts Of the country was 272,00O.-
600 barrels. If November and De-
cember kept pace with the earlier
months, yielding together 6O,00O.-
600 barrels, the total production for
the full twelve months of 1917
would be approximately 335, ,OOO,-
600 barrels, compared with 3O3.-
100000 barrels in 1916. The re-
fineries Of the country have a ca
pacity of $50, 100000 barrels year