f i n a n c i a l INCLUDING Bank and Quotation Section (Monthly) State and City Section (semi-Annnai^ Railway and Industrial Section (Quarterly) Street Railway Section (Th^| a£? T imes V OL . #5. SA T URDA Y , OCT OBER 26 1907. NO. 2209. 'Q h a C h r o n i c l e . PUBLISHED WEEK L Y . T er r as of S ubs c r i pt i o n—P ay abl e i n A dv a nc e F or One. Y n r ................ .....................................................................................
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  financial INCLUDING Bank and Quotation Section (Monthly) State and City Section (semi-Annnai^Railway and Industrial Section (Quarterly) Street Railway Section (Th^|a£? Times  VOL. #5. SATURDAY, OCTOBER 26 1907.NO. 2209. 'Qha  Chronicle. PUBLISHED WEEKLY. Terras of Subscription—Payable in Advance For One.  Y<nr  .....................................................................................................$ n 00.For Six Months............................................................................................ . — (>00European Subscription (including i>ostage) ............................................... 13 01)Fhiropean Subscription six months (inpluding pos tag e ......................... 7 50 A nnual SuoM- riptii.ji in London (including p stage)..............................£2 14 s.S ix Montlis Snbsrrrptii.n in London (including postag e)^.....................£1 11 s.ãCanadian .a jsc:- iption Uneluding postage) .......................... . .................. $11 50 Subscription includes following Suyplem'nts — B' xk   AxnQroT.ATioy (monthlyl j S tate   and  C ity   (semi-annually) R ailway    am >I ndustrial  (quarterly) | S treet  R ailway   (3 times yearly) Terms of Advertising—Per Inch Space Transient matter per inch space (14 agate lines) ........................................ $4 20 r  T wo J liuillis (<  times).............................. 22 00p „;r . r,„_,la ) T hree Months (13 times).............................  29 00Standing l.us.ne* Cards ããglx Mollths (20 times).............................. 50 00' Twelve Months (52 times) .............................  87 00CHICAGO OFFICE—P. Bartlett, 513 Monadnock Block; Tel. Harrison 4012. LONIM >X OFFICE—Edwards &  Smith, 1 Drapers’ Gardens, E. C. AVBL.I.,  Aim  15. DANA COMPANY, Publishers,P. O. Box 93S. Pine St., Corner of Pearl St., New York.Published every Saturday morn in x hy WILLIAM B. DANA COMPANY. William B. Dana, President Jacob Seibert Jr., Vice-Pres. anil Seo.; Arnold G. Dana, Treas. Addresses ot all, Office of the Company. Clearings at -  Week ending October  19. CLEARING HOUSE RETURNS. The following table, made up by telegraph, &c., indicates that the total bank clearings of all the clearing houses of the United States for the week ending to-day have been $3,329,096,289, against $3,10.5,685,487 last week and $3,195,a31.779 the corresponding week last year. Clearings—Retuihs bn Telegraph.    Week ending October  26.1907.! Per  1900. j Cent. New* Y'ork. ................. ...... ................B oston _____ _______ _________  ________ Philadelphia. ............................................. Baltimore ____________ ______ ___________ $1,732,450,406142,791,879126,952,82427.038.07!224,965,57860,614.45817,283,184$1,739,622,224139,774,472124,906,49222.363,163185.224,91250.986,57820.322.316—0.4 + 2.2 + 1.6 + 20.9 + 21.5 + 18.9 — 15.0St. Louis______________________________New Orleans _. ■ ......................................... Seven cities, 5day-s _______  ________ ..Other cities, 5 days _____________  _______ Total all cities days ..................... ......  All cities, 1 day  ________________________ Total all cities for week  _____________ *2,332,103,000442,019,768$2,283,200,157400,000,850+ 2.1 +10.5$2,774,122,828554,973.461$2,083,201,007512,330,772+ 3.4 + 8.3$3,329,096,289$3,195.531,779+ 4.2 The full details for the week covered by the above will be -given next Saturday. We cannot furnish them to-day, clearings being made up by the clearing houses at noon on Saturday, and hence in the above the last day of the week has to be in all cases estimated, as we go to press Friday night. We present below our usual detailed figures for the previous  week, covering the returns for the period ending with Satur day noon, Oct. 19, and the results for the corresponding  week in 1906, 1905 and 1904 arc also given. Contrasted with the week of 1906 the total for the whole country shows a loss of 4.8%. Outside of New York the increase over 1906 is 6.9%. Clearings at —  Week ending October  II). Inc. or 1907.1900. Dec. 1905.1904.$$%$$New York  ______ 1,815,208.0732,054,023.101— 11.01,771,998.9771,883.097.074Philadelphia ____ 151.860.091102,200,152—0.4140,154.098137.187.031Pittsburgh .......... .50,452,20148.705.122+ 3.052,100,18948.124,832Baltimore ........... 30,441,66230,197,280+ 0.828.720,50224.800.540Buffalo _____ ____ 10.010,8577.959,520+ 25..S7.115,5220.082,788 Albany  __   ____ 0,170,1580.941,182—11.15,089,1634,287.783 Washington ___ 0.185.7705,551,029+11.15,058.5024.479,204Rochester ______ 3,7.50,7203,582,730+ 4.7ã'i.198.9403,187,327.Scranton _______ 2.298.3711,910.829+ 19.91>:?8,5?21,852,760 Syracuse .  ........... 2.732,2372,033,0.34+ 34.41.950,9171.289,400Heading. ..........  . 1573,0171,317,284+ 19.51,103,0211,037,010 Wilmington _____ 1,282,2781,422,540—9.91,103.3301.100.740 Wilkes-Barre1,1»0.4731.174,204+ 0.51,024,580878,357 Wheeling .1,273,130992.138+ 28.31,031.380837,744Erie  ____________ 726,503095,775+ 4.4003,982500,108Binghamton501.000500,300+ 10.8520,400442.100<’hester ________ 655.640488.6S7+ 34.2401,008430.153Greensburg _____ 514,072472.185+ 9.0303.199102,150Franklin ............ 265,9052X2.519—5.9431,714238,928Harrisburg  ......... 1.14073511,052.7* 1+ 8.3.............  _______  York   ................... 890,771Not includedin totalTotal Middle..'2,088,343,7752.331,575,080  l           \       ©    ; 2,024,537,0722,120,922,1011907.1900. Inc. or   Dec. 1905.1904.$$%$$Boston _ _ _____ 173,547,048187,389,991—7.4163,021,44,r145,139,237Providence _____ 10.818,8009,375,500+ 15.411,053,80011.423 900Hartford _______ 3,480,7533,508,105—0.812,890,9832,524,267New Haven ____ 2,072,557 2,587,003 + 3.3 2,29O,09f  1,893,679Springfield. __ 2,182,8182,003,1(2+ 9.01,999.83s1,672,449Portland ______ 2,334,0371,907,073+ 22.41,923,0791.933,965 Worcester ______ 1,875,6621,903,508—1.51,621,30!954,3811.707,630Fall River ______ 1,320.5811,441.052—8.4647,607New Bedford ____ 1.121,870777.077+ 44.4750,980547,711Lowell__________599,522529,129+ 13.3529,606535,059Holyoke _______ 507,110455,848+ 11.2398.714470.542Total New Eng200,461,364211,878,108—5.4|188,041,555168,556,046Chicago . _____ 269,612,170,220,729.718+ 18.9206,410,005185,238,547Cincinnati ______ 27,900,00027.503.250+ 1.4 1 25,138,15022.553.900Cleveland .. -___19,096,30619,188.180+ 2.016,333,12113,570.793Detroit__________15,116,35513,430,902+12.613,898,66310.812,900Milwaukee ___ .13,127,98610,943,278:+  20.0 8.804,0688.824,793Indianapolis .. .7,670,0000,905,550i+10.17,292.0676.200,634Columbus ______ 5.900,6004.988,800+ 18.34,962,6004.383,200Toledo __ ____  .4,220,3794,120,887+ 2.33.962.5433.189,232|Peoria ______ 3.654,7082,651,400!+37.83,189,1463.359,7351Grand Rapids __ 2,659,9612.331,114+ 14.12,416,3701,899,876Davton ________ 2,020,8602,088,198—3.2i1,695,6701.520,46.5Evansville _____ 2.301,8291,903,965+20.91,463,1461.313.099 jKalamazoo _____ 1.131,696992,620+ 14.0910.584785,000|Springfield ______ 1.001,408957,179+ 4.075)9,611784,832|Fort Wayne ____ 840,919816,062+3.0771,287! Akron __________ 927,000 093,692 + 33.6 (500,500 546.500ILex ington ______ 745,911037,157+ 17.1661,666489,310Rockford ______ 729,336585,886+ 24.5537,420472,738|Youngstown ____ 723,711 542,812 + 33.3 565,115 509.429!Canton ________ 604,162486,742+ 24.1.387,238449,701iBloomington____482,348494,501—2.540ti, 167374.955|South Bend.. .567,910434,804+ 30.0372,272Springfield, O...480,394415,533+ 15.0385,420373,917|Qnlncv__________452,960410.060+ 10.5381.746288.831Mansfield _______ 397,401368,222+ 7.9312,839192,613]Decatur _______ 519,637358,380+ 45.0315,060272,208 jJacksonville, 111.273.417306,720— 10.9275,352210,727IJackson ..._____242.000220,000+ 10.0200,000248,313IAnn Arbor ______ 146,953123,193+ 19.3107.435108,793Tot. Mid.West.384.14S.317331,094.865+ 15.8303,555.873268.483.101iSan Francisco __ 47,513,93847,059,740+ 1.039,398.64829,904,020 jLos Angeles ____ 12,485,70211,293,463+ 10.09.881,7306.042.554:Seattle . ........ 10,868,06511,714.448—7.27.543.8005.159.200Portland9,191.2396.795,198+35.3,5,535,8214.018,657Salt Lake City   __ 0,873,3116,488,208+5.93,984.0003.687,509Snokane ________ 7.444,8985.043,333+ 31.93.938,1592,892,25.5Tacoma ________ 5.397,7254,770,818+ 13.03,009.1702.900.248Oakland ________ 2,446,8703.576,134—31.0Helena ________ 1,414,6541.198,003+ 18.0931,140.564.81,5Fargo __________,832,699027,182+32.8740.450078,123Sioux Falls  _____ 690,000543.489+ 20.9406,722317,764San Jose __  jStockton ......... __706,606654,023318,012 Not Included+ 122.2 in total.............Total Pacific..105,865,713100.034,088+ 5.876,030,30057.365,207iKansas City   ____ 39,933,75231.237,07127,94,5,12723,594,015 jMinneapolis _____ 37,790,91128,347,380+ 33.324.559,47022.137.4131Omaha ___ 13,449,94011.307,171+ 18.39.513,1678.182,211St. Paul ............. 10,928,537 9.407,420 + 10.2 7.040,845 7,038,520;Denver__________ 10.015,437 7,403,455 + 34.2 7,330,317 5,571,754 jSt. JoseDh ______ 5.709,6154.578,585+ 24.74,935.8784,186,078 jDes Moines ____ 3.187,0002,794.850+ 14.02,636,7132.101,982Sioux City   ______ 2,551.6032,221,701+ 11’§1.864,1541,342,6191Lincoln ________ 1,329,8881.388.978— 4.3Davenport ______ 1,192,0651,073.294+|Wichita ________ 1,540,9831.027.478+ 50.01,081.0531.029.578:Toneka ________ 1,089,151■929,558+ 17.2052,0991,040,771 jColorado Swings853,303770,884+ 10.7776.718526,485'Cedar Rapids. .868,586505,310+ 53.0ã580.304494.018iPueblo _________744,9X7.539.075+38.0589.590iFremont .......... 452,674335.007+35.1241,145169.559Tot. oth.West.131,638.498104,047,883+ 26.591.369,52578.197.9111St. Louis _______ 76.693,06401.369.355+ 25.055.852.44159.141.349iNew Orleans..19,000,94525,760,915—26.310.877,90119.511.010iHouston ........ 16,390,17717,359,925—5.011.034,1809.232.710| LoulsvlUe ........ 13.924,97312.999,581+ 7.111.987.89111,495.216Galveston ______ 7,945.000 10,169,500 — 21.9 7.370.000 6.818.500ISavannah______ 7,253.4008.443.842—14.55,002.703.5.928,2491Atlanta _______ 0,587,7270,043.591+,09.5i Richmond6,742,1905.97K. 191-f*12.S4,882.9444.921,096! Memnhls _______ 0,088,0215,580,780+ 19.96,639.2627,031.795Fort Worth __ .5,203,2784,599,515+ 13.12,939.3.502.502.1911Nashville _ _____ 6,242,6813,485.321+ 4  9.73.207,119 2.724,59 n INorfolk  _____  _2,980,2422.805,232+ 4.02,263,9032,127,702IAugusta _______ 4,215,6262,716.159+55.23,000,1022.224.007Birmingham ....2,376,3942.195.990+ 8.21,868.65411,548.193Mobile1,410,4942.023.339—30.31,117.681Charleston. ......... 2,054,433 1,802.070 + 14.0 1.009,56' I .'759,381Little Rock  _____ 1,886,9971,633.978+ 15.51.388.52' *1.334.72s;Chattanooga1,567,3511,440.9X7+ 8.81.352.42 881,195;Knoxville . ..1,057.8171.425.001+ 10.31.432.221.239.99!'!Jacksonville .1,484.453 j1,239,059+'Macon ................ 1,004.7961,001,072+ 6.3695.88-795,809Oklahoma1,350,087!1.057.207+ 27. V   .......... 351,141 jBeaumont _____ 500.468'340,000!+ 47.2361.51' |Total Southern;195.237.820|181.547.828i+ 7.5;146.227.43- j146.211.4(2Total all. ......... 3.105,085,487,i.200,777,858:—4.82,829.701.76?2.839.384.747Outside N. Y._ |Canada—1,290,417,414110.20.754.757;+ 6.91.057,702,79^ ...  ____ |33,165,08720.780,4.50:+ 23.828.39.5.10124.497,232Toronto .  _ _____  j24,870,34222.697,2361+ 9.623.015,94:.■19.273.022 Winnlneg. _ _____ '12,214,472:10,190,340+ 19.99.704.14?!6.878.956 Vancouver ______  j4.477.5222,009,507+ 71.0:,286.2802,322.308+ 41 ..52.070.4512.407.014Halifax . .......... -.[2.004,42311.709.002+ 13.31.900.000:1.968.167Quebec ................. i 2,350.065 1.554.408 + 51.2; 1.620.06.5! 1,641.414Hamilton 1.839,898 1,506,105 + 17.5 ■ 1.500.840! 1.336.822 Victoria - -......... !1,276,3431.181,184+ 8.0 803.262]747.44.';St. John ............... i1.170.6591,128,700;+ 4.4!1.229.90511.110.087Ixmdon ________ J1.316,47911,047,080+ 25.7;1.062.475)887.111Calgary ............ *|1.200.35,X1,024,960+17.< jEdmonton ______ I832.532645.7711+ 28.9!  ------  jTotal Canada.'90.016,400174.521.741!+ 20.8174,674.40362.452.S42  1018THE CHRONICLE. [V  ol . lxxxv  . “RAILWAY AND INDUSTRIAL ” SECTION.  A new number of our “Railway and Industrial”   Section, revised to date, is sent to our subscribers to day. The editorial discussions in the same embrace   the following topics: “Freight-Car Movement” and   “Estimating Undivided Profits.” THE FINANCIAL SITUATION. Our bankers have been confronted with a highly    serious and demoralizing financial condition the cur rent week. They have struggled with it, and by ven turing their millions they have saved the city from a   most disastrous panic. We thank them for their   generous and beneficent work. This state of discredit   has been the fruit of great heedlessness in handling the   country’s industrial affairs—a sure attendant upon   arrogance and lack of humility in any individual   directing such work. “Wisdom is ofttimes nearer    when we stoop than when we soar.” It has been   aided, too, by speculation, which always accompanies   a term of rapid progress/ and not infrequently leads to   and enters upon desperate expedients, in case of harm   feared from sudden suspended vitality in business,   seen to be approaching. Furthermore, it has been   aggravated in that it followed closely in the wake of    the country’s most notable progressive era, in which   all the elements, so abundant among our undeveloped   resources, one after another came into action. We   give a detailed record of the week’s events relating to   this liquidation in our department (pages 1058 to 1062)   devoted to “Banks, Bankers and Trust Companies.”It will be of interest to note what an array of forces   has been at work bringing us into the present pre carious situation. All our staple surplus products   have, been in such demand that it has seemed as if the   requirement of Europe for what we had to sell was   limitless; that the more we raised the more the outside    world wanted, and at good prices. This view has   taken full possession of the minds of the wage earners   of every country in the older world. As a consequence   population in the United States has increased rapidly—   almost beyond calculation; it is hardly too much to   say that immigrants have come in swarms. This, to be   sure, has its unfavorable side, but as a potential part   of our surpassing progress, no agency has held so im portant a place. The larger body of the new arrivals    went to the West—sections that were just ripe for   them. There they found not only Government lands   open to occupancy, but even cultivated lands, in good   farming districts, rich, cheap, and under production,   offered for sale. Consequently in very many cases   the newcomers bought these farms and the old owners   moved further west to open up other lands, perhaps   already in their possession, and to build new homes to   sell again whenever a new flow of buyers appeared.   In some such way or after this fashion the great   speculation in Western lands was begun and carried on.Next in order came the large increases in the sur pluses of our crops, which Europe seemed to be hungry    for. It would appear that we stimulated the European   demand in some measure by buying as well as selling    in those days, for it has always been a feature that    when we begin a term of activity and material progress   it becomes the signal for, and soon proves to be, the start   of a like movement abroad. So it turned out in this case;   for it was not long before it was found that Europeancotton spindles were also on the increase. That con dition in turn brought an added demand for our cotton.   The truth is, that crop had for years been cultivated   at a loss except upon the best lands. Hence in the   meantime the amount of production depended almost    wholly upon weather conditions. The added con sumption not only led to larger acreage, but the bigger   crop brought higher prices, and since then nothing    has paid better than raising cotton. Thus the circle   of productive work went on widening. Next to be   noted as buoyant features were the iron market and   railroad work, for enlarged crops mean enlarged earn ings, and increased earnings quickly find their way    into so many industries that it is no surprise that all   allied trades soon had a share in the same buoyancy    under the same stimulating influences.Nothing could withstand this rising tide of business   expansion. Added to the forgeoing were the immense   net favorable balances, results which our trade with   the outside world piled up in the face of all the people.   Beginning with 1898, when the annual net merchandise   values reached 620^4 millions of dollars, the corre sponding total has kept at marvelously high figures.   The last four years ending with 1906 it averaged over   450 million dollars. Hence, beginning with 1898,Jour   gold holdings, besides retaining our entire gold pro duction, added 262 million dollars by import.But the seeds of dissolution had been sown before 1906   had begun. What built up and supported such a   thriving trade condition was the only nutriment that   could have ensured its further growth. We have seen   how it grew, and only as it grew could its life be pro longed. It was fed on capital. There came a time    when a new ruler entered upon his career. His one   idea seemed to be to expel capital and to ostracize   capitalists. He made his laws so rigid that mobile    wealth, only used to fair play, took flight. Conse quently to-day we are lying on our backs, tended and   cared for only by these same men of wealth, who have   been pursued as if they were criminals, while our ruler   on his way home from his hunting expedition (no one   has a criticism for that) finds no time to send a word   of sympathy to his suffering subjects, but has plenty    of time in his self-righteous way to give utterance to   a mass of platitudes which no one ever disputed. We are glad that we write at the close of the week    and not at the middle of it, when the crisis was at its-   most disturbing point. Day by day events have been   making history fast. In the meantime our Clearing    House institutions have established a good record for   themselves. That was expected. But when we re member the great mass of institutions which have   been organized since our term of prosperity began,   and the rapidity of their growth, it is a surprise to   find so few weaknesses developed. As a rule, good bank    methods have been observed. Nothing could be more   assuring than the way the situation is gradually    righting itself. The strain has been tremendous. We   think this week’s developments warrant the conclusion   that, as a whole, our financial institutions are at the   core sound and healthy. It seems also correct to say    that they hold a body of assets possessing worth and   intrinsic merit. Any impression that they are loaded   down with a lot of rotten securit ies .or worthless paper   is utterly without foundation. The action of the   Clearing House proves conclusively the truth of this  O ct . 26 1907.J THE CHRONICLE.1010 statement. Our financiers, headed by Mr. J. P.   Morgan, deserve great credit for the able way they    have handled a most trying state of things, and for the   aid which, through their efforts, has been extended to   embarrassed institutions. But it must always be   remembered that such aid carries with it as an indis pensable preliminary the possession of abundant and   sound assets on the part of the institution needing    help. Neither the Clearing House nor these financial   leaders are advancing money on unsubstantial col lateral. They would be merely inviting their own   ruin if they did. The very fact, therefore, that aid   has been extended is itself evidence that the aid was   deserved. Another highly encouraging circumstance   is that the trust companies are now standing together    just as the banks have long been bound together in   the Clearing House. It should be noted, too, that this   trust company movement is in charge of the executive   officials of the strongest and most esteemed companies,   like the Union Trust Company, the Farmers’Loan &   Trust Company, &c., &c. If the movement were   engineered by the smaller or weaker concerns it would   of course, carry no potentiality whatever.The confidence, therefore, with which the situation   is regarded as the week closes appears fully justified.   This does not, of couise, mean that there may not   be a few more suspensions of one kind or another, for   that would be merely a natural concomitant of such   an acute state of things as at present exists. It may    be, too, that among these there will be some worthy    but unfortunate institutions, for it is absolutely im possible to give shelter to every wayfarer or to protect   and fortify every point. The effort, naturally, will be   directed to upholding and sustaining the city’s financial   institutions as a whole. That is what has been accom plished , and the task will prove less difficult with each   succeeding day that the effort is kept up and impair ment of strength or condition avoided. Considerable   importance, furthermore, deserves to be attached to   the sound state of mercantile trade. Some contrac tion in the volume of general business is inevitable   after such a series of events as we are now experiencing,   but apart from the involvement of two or three   prominent concerns there appears to be little evidence   ■of weakness anywhere. It should, likewise, be remem bered that we have just harvested our crops and that   these, though not of the extraordinary magnitude of    the crops of last season, are yet very abundant, thus   assuring continued prosperity to our agricultural in terests , upon which so much depends. There is really    no serious element of weakness anywhere except in our   security markets. There it will not be easy to restore   confidence very readily, and yet, even in that direc tion, there is a safeguard against further depression    which should by no means be ignored. For is it not   true that prices have reached a level so low as to dis count every possible adverse happening that may over take the country during the next sixteen months?   Finally, the administration at Washington is un doubtedly alive to the needs of the situation, as is   made plain by the action of Secretary Cortelyou all   through the present week. Altogether, there is good   reason for viewing the future with much hope.There has been a four-days’conference this week    at Chicago on the trust question under the auspices of    the National Civic Federation. All shades of thought were represented at the gathering, and the discussions   naturally developed a wide diversity of views. Many    of the addresses delivered furnish food for thought.   The remarks of President Nicholas Murray Butler of    Columbia University concerning the operation of the   Sherman Anti-Trust Law, and his statement that   nothing is necessarily to be feared from a corporation   because of its size, show a true understanding of the   situation; and the address of Mr. Isaac N. Seligman   of this city was in excellent tone and temper, though    we cannot accept all of his suggestions or agree with   him in some of his conclusions. As for the address   of Charles G. Dawes, formerly Comptroller of the Cur rency, and now President of the Central Trust Company    of Illinois, his explanation and analysis of the situation   furnishes, it strikes us, a true clue to the causes re sponsible for our present troubles, and which have led   up to the pass in which the country finds itself to-day.It is noteworthy, however, that this conference, ap parently so well attended, and dealing with perhaps the   most important problem in our political and economic   life to-day, has attracted very little attention and ex cited hardly any qpmment—at least here in the East.   There have been suggestions galore for dealing with   the problem, some novel and some hoary with age;   but no one apparently seems to care anything about   them. The reason is perfectly plain. The public is   tired of the turmoil, the din and the agitation which   has been kept up so incessantly and for so long a time.   During the last two or three years we have been doing    nothing but stirring up things. We have been ex ploring muck heaps and naturally found the mess un savory. We have treated the resulting disclosures as   if they reflected normal instead of abnormal conditionsas if they were the rule instead of the exception to   the rule. We have consequently been giving heed to   suggestions which, far from being intended merely to   remove evils and correct abuses, would have as their   inevitable effect the subversion of the whole existing    order of things. The National Legislature has done   considerable new legislation and has given more or   less earnest consideration to measures of a yet more   drastic type and which, according to common report,   are to be urged anew upon its attention at the coming    session of Congress. The State legislatures have fol lowed in the foosteps of this Federal prototype and   have gone it one better. The statute books are loaded   up with new trust laws, railroad laws, acts for curbing    corporations and for harassing and embarrassing    capital, and for hunting down men of wealth as if the   enterprises in which they were engaged were criminal   and should be exterminated instead of encouraged.Now we have reached a point where the whole thing    is beginning to pall upon us. The financial distur bances, too, with which we are now confronted are   opening our eyes to the folly and the dangers involved   in the heedless course we are pursuing. The feeling,   therefore, is,the time has arrived for letting up in the   movement. Certainly there is no need or occasion for   further legislation. There is already' too much of it   on the statute books. It would no doubt be beneficia   to remove some of the laws so hastily enacted duiing    the last two or three years. But what is needed above   everything else is rest—time for recuperation and ts   regain our self-possession, so that sure recognition may    be given to the fact that out industiial agencies of    to-day tend to the uplifting of society, not to its pulling   1050THE CHRONICLE. [V  ol . lxxxv  . down. If there is crime anywhere, let it be ferreted   out and let the offenders be punished. But let us pro ceed as in a police court, in an orderly manner, with   a view to wOrking real correction and not to promote   sensationalism or the making of political capital. Let   us also never forget that such crimes are not typical   of our industrial condition any more than the crimes    which crowd the calendars of the police courts are typi cal of social conditions. They are simply the excrescen ces; the body itself remains normal and healthy.   There is absolutely no occasion for any radical departure   in the fundamental principles upon which our indus trial and economic life has been carried on since the   foundation of government. Under that order of things   the country recently attained a state of prosperity    never before equaled in this or any other country or at   any period in the world's history. All classes of so ciety, too, have shared in the progress and develop ment. Particularly is this true of the wage-earners,    whose welfare is properly the solicitude of the whole   community. They are enjoying all the comforts and   benefits of the world’s inventions and discoveries and   are obliged to work less hours for better pay than at   any previous time. We repeat, therefore, that what is   needed to-day is rest and peace and quiet. We need   relief from the action of our legislators and Government   officials, and we need relief also from the so-called   reformers and other well-meaning persons, who seek for   perfection everywhere except in their own hearts.The customary annual review of the world’s cotton   supply and consumption prepared by Mr. Thomas R.   Ellison of Liverpool was made public in that city on   Tuesday of the current week. We have received all   the data it contains by cable and give the same to our   readers in detail on pag3 1056. These figures are for   the season ending Oct. 11907, and they show that the   takings of cotton by the mills both in Great Britain   and on the Continent were largely in excess of 1905-06   or any earlier year. The increase in takings over the   previous season is found to have been more than one   million bales. Consumption likewise increased, but   much less in amount than the takings, the year’s total   having been 9,352,000 bales of 500 lbs. average net    weight, which is an increase over the preceding season   of 326,000 bales, and therefore also a record aggre gate.But the most interesting and important feature of    this review is the position of the mills as regards the   excess in supply of the raw material—that is, the in creased stock on hand at the close of the season.   In this particular it appears ^that the spinners entered   the coming year Oct. 11907-08 unusually well fortified   against a short supply of the raw material early in the   season. It seems that the combined stocks of all kinds   of cotton carried over into the new season by European   mills, according to Mr. Ellison, reached the phenomenal   total of 1,456,000 bales of an average net weight of    500 lbs. That would appear to be a conservative   statement of the situation, judging from the fact that   the International Federation’s Census as of Aug. 31   (a date only one month earlier than the figures under   review cover) made the stocks nearly 1,900,000 bales   of 500 lbs. each. It is of course only by comparison    with previous years that the present position of spin ners is clearly realized. At the clqse of 1905-06 and1904-05 the amounts carried over were large, reaching in each case between 800,000 and 900,000 bales; but   prior to those seasons three or four hundred thousand   bales in hand at the end of the year was the rule.    When we contrast , therefore, the past with the 1,456,-   000 bales now on hand (an amount equal to nearly two   months’consumption), the real strength of the mills   becomes apparent.Turning to Mr. Ellison’s estimate of requirements   for the current season (1907-08, Oct. 1 to Sept. 30)*    we notice that he states it as his opinion that Europe   and the United States (including amounts shipped   from this country to Japan, Canada, &c.) will need15.200.000 bales of ordinary weights, equaling 14,890,-   000 bales of 500 lbs. each to cover consumption and   leave mill stocks at the close as they were at the open ing of the season. This estimate is based on an increase   in consumption in the countries mentioned in 1907-08   of 188,000 bales of 500 lbs. each. This estimate of    increase in consumption is cast upon conservative   lines. We are inclined to think it may have to be re vised somewhat before the season has progressed far.   The business outlook in the United States does not   seem just now to warrant any increase in cotton con sumption this season. On the Continent of Europe it   is probable that more cotton will be consumed in the   coming months than in last season, but it is likely that,   the easing up in Great Britain, of which there is already    some evidence, will offset the Continent’s increase.On the other hand, it is a fact that the spinning ca pacity of mills in Europe was increased to the extent of 2.300.000 spindles in 1906-07, and of this gain 2,000,-000 spindles was in Great Britain. While this in itself    is a very fair augmentation of capacity, considerable   further expansion is already under way or in contem plation. From Continental delegates to the Atlanta   Conference, we learned that additions of 4 or 5 million   spindles are planned on the Continent, and it is oil   that and other information gleaned from well-informed   foreign spinners that a probable increase in consump tion on the Continent is based. In Great Britain   cotton mill building is also in progress, and recent com pilations indicate that work is under way in installing,   or preparing to install, some 4 million spindles, of which   about 2% will be devoted to American cotton and the   remainder to the Egyptian variety. As bearing further upon the matter of consumption,   some recent developments with regard to cotton it self may possess more than passing interest. We noted   last week that, contrary to the usual trend of events,   the first killing frosts were ineffective as a stimulant   to prices this season, and further frosts since have been   equally without force. In fact, the course of prices   has been downward rather than upward, financial   conditions undoubtedly assisting somewhat in that   decline. For reasons already stated—large stocks of    cotton on hand—spinners have shown no disposition   to purchase freely; but notwithstanding this, visible   stocks have not accumulated rapidly, owing to the   small movement of cotton from the Southwest, the re sult of the holding movement being maintained there.   There are those who believe that this holding move ment will eventually be a success, and spinners be forced   to pay the fixed price demanded; but they fail to re member it is always the case that in such carrying    movements the load gets heavier fast as the season   progresses. .
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