• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
A
PAPER
ON
-PANICS
AND
BOOMS"
READ
BEFORE
THE
SOUTHERN
CALIFORNIAEDITORIAL
ASSOCIATION
IN
JUNE
1897,
BY
L
M
HOLT,
AT
A
MEETING
HELD
AT
ALPINE
TAVERN
OUTLINESCLEARLY
THE
BUSINESS
ACTIV-
ITY
OF
TO-DAY.
tlonn.
It
willnot
be
ntrnngo
If
specu-
lative
property
will
beadvanced
In
price
beyond
what
can
bo
maintained
during
a
period
of
financial
depres-
sion—a
period
of
paying
Indebtedness.
No
oneshould
bollove
for
amomentthat
the
present
advance
in
prices
canalwa>H
be
maintained.
When
prices
reach
the
top
there
will
bo
thoiiftandft
of
people
who
will
be
com*
polled
to
fcell
In
order
to
meet
ma-
turing
obligations.
This
will
cause
a
depression
in
prices,
and
thisdepres-
sion
will
cause
still
further
necessi-
ties
for
selling.
in
une.
I
i.
L.
M.
Holt
read
before
a
meet;ng
of
the
Southern
California
IM.iurlal
Association,
held
at
AlpineTavern,
a
paper
on
"Panics
and
ttooms"
that
ko
closely
outlined
and
p:eukt«d
the
preeent
condition
ofaffairs,
giving
the
causes
therefor,
that
we
republlsh
the
same
for
the
benefit
of
those
who
may
be
Inclined
R-lf
makes
greaterbusiness
activity.
During
periods
of
business
depression
there
is
not
work
for
all,
and
this
of
itself
makes
business
dull
and
un-profitable.
The
existence
of
either
one
of
these
conditions
leads
necessarily
to
the
other.
It
Is
an
Impossibility
for
cither
prosperous
times
or
depressed
times
to
continue
permanently.
During
prosperoustimes,
there
be-
ing
work
for
all,
all
are
supplied
with
the
means
of
accumulating
wealth,
and
thus
all
are
enabled
to
provide
themselves
and
families
withall
the
necessaries,
and
many
of
the
luxuries,
of
life;
and
hence,during
the
prosper*
ous
times
thedemand
for
goods
and
property
increases,and
soon
the
de-
mand
exceeds
thesupply,
and
then
prices
advance.
This
rule,
whichIs
applied
to
the
laborer,
is
also
applied
to
the
busi-
ness
man.
Prosperous
times
Induce
business
men
to
branch
out
In
their
several
lines
of
trade.
The
volume
of
trade.The
volume
of
trade
beinglarge,
each
gets
a
corresponding
pro-
portlon
of
it
Many
businessmen
find
that
they
cando
more
business
than
FINANCIAL
PROSPERITYPREDICTED.
THE
AKKOWHEAP.
<»N
TJIK
MOUNTAIN
SII»K
NORTH
OF
SAN
HEKNAKMNO.
CearusT
0/
V.
I.
ristol,
pablishtr
ef
"
•."»;':f-
>
ra:i3*
4ai
Sltttiea
of
in
oatkwest."
this
country
with
a
terrible
crash
In
1892.
The
panic
In
this
country
was
not
so
severe
as
it
was
in
Australia,
because
the
conditions
were
bettor
hero
than
there.
It
generallyrequires
from
four
to
olght
years
to
recover
from
tho
ef-
fectsof
a
tfi»noral
world-wide
financial
panic,
hut
the
recovery
in
just
as
sure
to
come
as
daylight
is
to
follow
dark-
ness,
and
then
in
turn,
another
panic
Is
ns
certain
to
come
again
in
duo
courso
oftime
as
darknens
Is
to
fol-
low
daylight.
Thcro
woro
flvo
financial
panics
in
this
country
during
tho
century
Just
closed.
Theso
wero
In
1819,
1837,1857,
1873
and
1892.
Tho
next
panic
Is
duo
about
1910.
It
may
como
a
lit-
tlo
earlier
or
a
little
later,
but
It
will
boi.lxuit
that
time,
and
ns
tho
period
of
prosperity
Is
being
used
to
Its
full-
est
extent
In
heavy
financial
opera-
perlenced
a
very
wild
real
estate
speculative
boom.
Tho
gait
was
so
rapid
that
a
halt
was
a
necessity
be-
forotho
financial
world
at
large
got
ready
for
a
general
settlement.
Hence
the
bursting
of
theboom
In
ISsT-S
was
a
memorable
occasion
so
far
as
our
littlo
corner
of
th«
world
was
concerned,
but
It
was
local
In
character
and
did
not
extend
its
in-
fluence
beyond
these
narrow
limits.
Such
a
thing
may
occur
again,
for
present
Indications
point
to
n
very
active
real
estate
and
business
move-
ment
In
this
section
of
tho
United
States
during
theImmediate
future.
Tho
real
estate
mnrket
Is
liable
to
approach
very
closely
to
the
margin
of
tho
boom
conditions.
The
conditions
hero
nro
right
fora
solid
advance
In
real
estate
values,
caused
by
Icgltlmato
business
developments.
Under
thesecondl-
to
think
that
tho
present
period
of
prosperity
Is
to
permanently
continue:
Panics
andBooms.
Ever
since
the
establishment
of
the
human
race
on
this
planet
there
has
been
a
gradual
increase
of
population
and
a
more
rapid
consumption
of
wealth.
Wealth
Is
tho
result
of
labor,
and
withoutlabor
there
can
be
no
wealth.
Men
live
andpass
invny,
but
as
they
cannot
take
tlu«irwealth
with
them
a
large
percentage
accumulates
for
the
benefit
of
their
successors.
Hencethe
wenlth
of
tho
world
today,
per
capita,
is
muchgreater
than
ever
be-
fore,
and
it
is
continually
on
the
in-
crease.
The
transfer
of
wealth,
or
property,
from
one
person
to
another
creates
business.
Under
favorablo
conditions,
transfers
are
numerous
and
business
Is
brisk.
Underunfavorable
condl«
t
lons
transfers
nro
fow
and
business
Is
dull.
During
periods
of
business
activity
thero
Is
work
for
all.
and
this
of
It-
is
allowed
by
their
limited
capital
They
then
buy
on
credit.
Prices
are
continually
advancing,
therefore
they
areable
to
make
mar-
gins
of
profit
not
only
on
the
capital
furnished
by
themselves,
but
on
the
capital
furnished
through
their
credit.
This
rule
alsoapplies
to
people
deal-
ing
in
real
estate.
The
country
is
grow-
lug;
money
is
easy;
the
times
ure
good;
business
is
prosperousand
there-
fore
speculation
Is
favored.
A
man
worth
$5000
can
buy
four
times
that
amount
of
property
by
using
hiscredit,
and
sometimes
he
buys
tentimes
that
amount
or
more.
Whileprices
are
advancing
he
not
only
gets
the
benefits
of
theadvance
in
the
price
of
tho
property
represented
by
the
cap-
ital
furnished
by
himself,
but
also
on
the
capital
furnished
by
his
credit.
When
prices
of
property
andgoods
during
a
period
of
business
depression
are
falllnp.
the
loss
does
not
come
on
tho
entire
property,
but
only
on
that
portion
of
It
represented
by
thocash
carital
the
man
has
Invested
In
It.
Th««
debt
never
shrinks
until
the
real
investment
is
all
gone.
Imperial
Press.
ND
FARMER.
"Water
is
Klng-Hcrc
Is
Us
Kingdom."
IMPERIAL,
CM.,
SATURDAY,
JANUARY
4,
1902.
No.
38
ol.
I.
Tho
United
States
1b
passingthrough
one
of
ita
periods
of
busincsc
pro
3*
pcrlty.
In
fartthis
condition
of
affairs
io
to
bo
found
in
most
parts
of
the-
civilized
world
at
the
present
time.
For
the
past
four
or
five
years
the
business
worldhas
been
recovering
from
the
;erriblo
effects
of
the
last
periodical
financial
panic
which
com-
menced
In
Australia
and
the
South
American
republics
in
IS9I.
and
atrmklions
nnd
gigantic
monled
and
busi-
ness
combinations,
when
the
next
panic
docs
put
In
an
appearance,
itwill
bo
a:»t
to
do
Uhwork
thorough-
ly
as
the
account*
to
be
settled
will
bo
largo
ones
contracted
on
a
gigantic
scalo.
There
may
be
local
financial
dls-
turbanccs
prior
to
thedate
given,
but
the
world-wide
settlement
is
not
due
yet
for
about
eight
or
ten
years.
In
18SC-7.
Southern
California
ex-
THE
UTAH
RAILROAD
AND
OTHER
DEVELOPMENTS
FORETOLD.
 
Tiir
cii*rrrr
irminr
avp
tiir
meticax
custom
iiouab,
o*
tub
nocndarv
line
VEAB
THr
||K.«D
OK
THE
IMPRRIAL
CAVU.
JiTSTrM.
After
the
panic
of
1K75
It
took
the
[»«-<>p!e
f»f
Southf-rn
California
five
years
to
K*t
rendy
for
bu»lnenH
ucain
;ln
1180.
A
similar
period
after
the
rnnle
of
1893
oueht
to
place
thiscountry
aualn
Inline
for
business
ac-
tivity.
The
panic
of
139.T
was
more
widespread
In
Its
operations
than
thnt
nt
IR7.
*;1
*;
but
loenlly.
it
woh
not
so
severe,
a»
comparatively
little,
money
*
-ah
lost
by
depositor*
by
falling
bnnks
I
In
Southern
California
four
yenrs
njfo.
j
whereas
in
187.1
the
|os»
was
very
Hon.
D.
C.
Reed,
now
mayor
of
the
Cityof
San
Diego,
gave
a
banquet
at
the
Horton
Hou*<»
In
that
city,
to
which
l*y
Invited
business
men
from
all
point*
In
Southern
California.
In
re«pon»»»
to
the
sentiment."The
Prosperity
o:
southern
California."
the
writer,
among
othT
things,
briefly
reviewermany
of
th«»
principles
herein
laid
('own
and
following
th<»
lln*»
of
thought
that
waves
of
prosperity
and
depres-
sion
follow
each
other
with
more
ork»H
r^ularlty.
predicted
th.H
«om«'-
wherf
between
th*»
years
of
1892
and
]S
f
j'>
this
countrywould
ajfaln
enter
upona
period
of
business
depre.«Hlon
rhat
would
be
very
severe
on
the
bUHi-
nom
activity
of
tho
country.
The
local
Hpeculatlve
boom
of
ISSf,-7
broke
lons
before
thin
predicted
period,
but
the
lihlversal
panic
which
nwopl
over
the
civilizedworld
did
not
appear
until
fhf
Utn"
predletr»d—
lSD3.
It
appcarw
to
t*
quire,under
present
businesH
con-
ditions,
from
eighteen
to
twenty
years
for
thocountry
to
pn««t
through
a
romplete
cycle
from
f>ne
tniHlnef<H
de-
pression
to
another.
Xioncy
15
plenty,
crctlit*
are
ro
'U.
Ana
the
mawe*
are
pood
pay
becauiv
all
kinds
of
property
are
convertible
into
kiul
tender.
Improvement*,
pub-
lic
andprhAte,arepushed
to
their
utmost
extent,
fancy
price*
aro
p.t!U
for
n>al
estate
because
It
can
bo
sold
readily
airaln
at
still
more
fancy
prlcr9
Indlvldoali
of
UniltCHl
capital
hcli
:
.•
-.v.iv.
S
andhundre*ls
of
thou.««u
u«*
of
dollarsworth
of
property
on
wh!c*
enly
a
»mall
payment
has
been
rna»!e.
An"
advance
of
five
per
cent
on
tht-
Thui
the
buj»incK*
of
the
country
l»
forced
into
An
active
condition.
.»:-.:
thu»
bu»inr&s
activity
Increases
in
prouHtrlc.il
pr\>i;
region
until
wajcci
roach
their
maximum
pt^lnt.
factories
Arr
running
to
their
utmost
capacity,
price*
of
all
kindsof
puoiin
and
uli
kin<!»
of
prtipertyadvance,
and
peo-
ple
begin
to
purchase
again
more
than
they
havethe
money
to
pay
for—sonn-
t
«cau!W>
taer
want
pmflts
on
lncrcanlns
.»'.
:.\i
.»:•*
-
and
other*simply
bc-caus-
o.
•
\
.:.•.".
.\^.\:ii
Idea*
of
ltvlne.
A
timeisfinally
reached
when
p«op.e
:
i.
-.:\
to
»
«
i
ut
of
debt,
and
then
t.-.-
>
!
k;n
to
lite
a
little
i
•
i:.
buy
nort
Of
the
nevesMrlc*
of
life
ami
*;>m:'
of
the
Uuurles.
As
tho
numU-r
ol
tvHij
le
in
inch
I
n
roved
coodition
in-
crca*e*.
trade
N'uin»
to
pick
up;
;.w
\u25a0
•
onlc-r*
arc*
*ent
to
the
factories,
uwm
«hcrl»
.v-
set
In
motion,
more
opt-ia-
ti\c*arr
emp]o>r«l
andmore
propk
are
;-;.u
«
.1
in
position
to
buy
morv
poods,
uhlch
in
turn
••:.»::.*
more
tullin
ana
pltc*
emplmment
toMill
morr
men.
a
bonnrt
And
drew
Instcxtd
of
«»
titn^
new
one*.
All
profile
Jn
a
d»n
section
ol
Country
up*
their
cirdil
At
the
Mint
timeI.«»mm
tbr-y
Ale
nil
Ro%einc«l
l->
the
name
lotai
oanditions.
Hence,
there
Is
«
firiltious
stimulation
ol
price*
which
tnuM
m»<»
to
an
cud.
This
md
t»rinp»
a
financial
drprrs-
Mon
which
muM
necr*Mrlly
follow
a
period
of
tu^ncw
Aftivity.
When
the
people
itrrlte
at
a
point
where
their
credit
limit
Is
rrachcti
U.cre
is
nccc*«rilv
»
uecrrAJc
in
thr
demand
for
poodn
And
prtipwty.
and
rot
mtho
supply
t>eo\mc*
grtMttrr
thsn
the'
fictnftjid
And
prka
i^pin
o
decline,
TbU
nlc*n»
f
eculation.
Thousands
CI
prople
cnfragcl
in
tnanufatcurlnfc
or
prodw^inp
article*
of
Rcntral
u±c
»re
thusthromu
out
of
employment,
anil
thi>
cacM«
o
pUU
further
dr<rco-*c
in
tho
dcroand
forgoods,
and
hence
a
further
decline
In
price*.
Tho»e
who
l.a\c
purchased
on
crcilit
find
them-
WITCS
SUbjCCtCtl
tO
heAVy
ICwW»
t^-
czutc
theyare
ctimpellM
to
MWtain
the
drprorifttlon
on
*00d»
they
do
not
,«n
that
I*.
pcx>ds
bought
on
cnMH-
Decaute
of
till*
dcvrrA*e
In
valuation*
all
ai^
«*xnpell<Hi
to
economise
in
or-
der
to
a<l)aist
their
eip^nfc*
to
tho
m
w
order
of
tblnc*.
th^y
NMnc
c*iro.
pcllcsi
to
pay
eff
the
accumulate*!
In-
(lfMcdn^
*Hht^e
de*rea.*.^d
income.
This
economyof
the
masse*
»ttll
fur-
ihrr
rtevrr^as^s
the
d»
round
for
Rcx»ds
nnd
property
»nd
thif
*till
further
in-
crease*
the
supply
over
the
demand,
and
dccrwtws
the
prices,
throwing
more
p^->p!e
out
of
employment
*n*
ln
'
crro*inf
the
depressed
condition
ofbasin
c**.
The
bt:sine*s
nisn
fe*!»
the
change
in
conditions
as
well
a*
the
laborer.
IX>lag
business
largely
on
borrowed
capital-
he
low*
all
the
capita!
ctarl°y^
ln
lhc
tosinctf*.
not
slone
on
the
rnoaey
fur-
n!fhed
by
himself.
Thevalue
of
the
business
shrinks,
but
the
dcM
re-
mains
the
same
or
increases
Bank-
ruptcy
stare*
the
buMnef*
word
in
tae
face.
*
The
weaker
sra
under
while
taeKtroncer
pull
through,
and
sometimes
make
fortune
At
a
little
!at<rdate
out
of
the
misfortune*
of
others.
Here
is
a
coaditfcm
of
bard
limes.
A
Urpe
pxrecnuce
of
the
laboring
P<«op)e
oftheworld
are
thrown
out
of
employment.Every
time
a
man
stops
wor
c_Lsu,y>s
prodacins—
bis
purcbas-
Inc
ability
U
Impaired,
the
demand
for
f^K>ds
becomes
less
and
prices
arv
lowered.
During
the
periodof
depression—
thedebt-paying
period—
the
people
ai
larce
arc-
forced
to
economize.
The
earningrapacity
of
all
classes
baa
t<-en
decrea^^d.
A
large
perce-ntaite
of
people
are
thrown
oat
of
steadyemployment
and
wares
are
reducefli
for
those
-who
do
secure
labor.
Some
earn
enotich
to
pay
expenses
of
livlu*
r<-onomicaHy.
whSlo
others
do
not
and
are
compelled
to
liv^
fn
part
on
th«
limited
accumulations
of
former
tnore
prosperous
years.
Many
business
tn*»n
continue
in
btwi-
m-Ks:
some
ar*»
abl«*
to
ra*etrunning
expeni^-5.
vhlle
others
prefer
to
lose
a
liltl*
ach
month,
awaltint
the
re-
turn
of
better
tiroes,
rather
than
to
lose
more
heavily
by
retiringentirely
from
business.
Manycannot
stand
thepres-
sure,
and
quit
business,
forced
to
lose
!he
accumulations
for
years.
Durine
tb"
year*
of
depressionval-
nr-s
of
all
kinds
of
property
shrink.
In
th*»
ca«^
of
Incumbered
propertythis
phrlnfcajre
falls
entirely
on
the
martrln
and
not
on
the
debt.
Some-
times
it
wipesout
the
martin
and
a
portion
of
th*
debt
also.
Sometimes
the
margin
Is
so
nearly
wip~s
oat
that
th*
a!U-s*>d
f
"
rn
"
r
n
*
tJl<v
proP^T
transfers
h!»Interest
in
th*
property
to
the
one
who
holds
the
c!a!m
ann'nst
it
and
anothr-r
debt
U
paid.
Some-
times
th*
bolder
of
th*
debt
declines
tn
thnstake
th^
property
and
reloose
A
person
who
<soa«
basin***
on
&
pnrtisl
cr«slt
basis,
on
borrowed
cap-
ital
make*
lanrer
T>roflt«
flaring
v^r-
Joels'
of
prosr^rltv
whf-n
th<*
prk^i
ar«
r.dvanclnp
than
he
who
!s
on
a
c^ash
basisbut
he
iusUlns
larirer
lowmhi
during
peHodu
of
dpprention
when
prices
are
dropping.
If
man
could
chants
ouickly
from
n
credit
system
to
a
cash
basis
as
,oon
as
tho
period
«*
Priority
closes
be
would
\*
all
rieht.
bat
h^
IsIn
*,>bt
and
the
debt
must
he
pa
d.
and
hence
It
is
not
usually
practical
to
Lke
the
chanK*.
If
t
w«*
e
would
nO
Orl
dua
n
ny
e
the
surplus
{Jj
rot.ntry
are
paid
and
the
P^oj
,,
F
i°r
apaln.
P^pi^
lire
within
their
Income
and
temporarily
l«rn
<™>
nomical
habiU.M^nsmo**
frw«jj
;»,™t>er
rlrars
and
ladfc*
P«7*^
f^wer
Hbbons
and
occasionally
fix
over
At
the
rlwe
of
a
speculative
boom
j
the
chattjso
cotur*
like
n
thief
lit
th»-
|
ight.
In
fact
n
thief
In
the
night
'wouM
be
n
wcktune
vUltor
to
many
jtuMcad
of
the
chanK©
which
putii
in
inn
nj'prarnnci*.
but
the
*
hnnc<
fftifli
»
financial
deprcaslontobetter
limes
come*
gradually—
wj
gradually
Ibal
f*»i
tuontt.s
their
is
a
difference
of
opinion
'an
to
whether
it
ehniiß«
(
for
the
better
I
as
actually
commenced
or
not.
Glance
for
a
moment
over
the
nnan«
clal
history
of
the
century
Junt
*
los-
ing,
and
pVc
what
has
been
the
ton-
ditioa
of
iho
country.During
1H37
tne
rountrj
*v.ik
in
the
midst
of
a
linmciil
panic.
Again
during
theyear
IS57—
twci.ty
)«a:»
liter
—
there
\»a»
anotlni
!
panic.
In
lvi
a
nnumlal
crisis
struck
th«*
rastrrn
ittatcs
nnd
the
great
bank-
>fnc
house
of
Jay
took
Si
Co.
wns
found
Aroons
the
financial
wrecks
acat«
t«
red
throughout
that
s«x:tliin
of
the
.
untry.*n
l
"'»
|nB
»ame
panic
i«arhoil
tl^e
r.iclflc
Coatt.
-cUwlmc
the
doon
of
the
Hank
of
California
ol
Ban
Pranclico.
together
with
mauj
other
banking
insiltutions.
Includingthe
then
popular
banking
house
uf
Temple
and
Workman
In
our
own
1««**
Angeles—
a
bank
that
failed
for
o\»«r
.i
million
dollar*
and
never
paid
v
c<
nt
on
the
dollar
to
the
many
unfor-
:*:nttf
depositors.
In
1593
the
next
panicstruck
the
I'nlted
States
after
ha\itiK
wrecked
«'•
many
hanking
Institution*
In
South
America.
Australia,
and
other
partsof
the
world.
Duringthe
year
ISS6.
when
tho
late
speculative
boom
was
getting
und;r
good
headway
la
Southern
California.
IMPERIAL,
PKUSS
Capitalists
ar«
now
active.,
laying
the
foundations
solidly
forfuture
opera-
tions
In
this,
Ood'H
corner
ofthe
universe:
nnd
while
we,
would
notnrt-
vl«o
people
to
stand
still
and
see
th«
I»cal
conditions
In
Southern
Cali-fornia
will
affect
tho
Issuo
here,
aitd
they
appear
In
our
favor.
Tho
build-
Ing
of
the
breakwnter
at
Snn
Pedro
by
the
government
will
Insureanother
transcontinental
railroadfrom
the
earn
to
Ix)fl
Angeles
via
Utah.
Thena
1
cent
apound
tariff
on
citrus
fruits,
the
building
of
more
beet
-sugar
factories*
andthe
Improvement
of
the
vast
waterpower
ofthe
mountain
streams,
and
the
wetting
of
that
power
to
work
building
up
and
enriching
tho
country.
—all
these
nnd
moro
will
help
alonK
the-
good
work.
This
Is
a
remarkably
clearstate-
ment
ofthe
facts
of
tho
can©,
and
Ih
evidence
from
unquestionable
author-
ity
that
the
positiontaken
herein
in
correct.
"The
statement
that,
except
for
the
temporary
depression
in
prices
th»*
volume
of
business
transactedIs
now
larger
than
It
was
In
1532-—
the
year
of
the.
greatest
prosperity—-has
been
questioned
by
some.
But
a
compan-
ion
of
price*
thiswe^k
Inthe
leading
branches
of
manufacture,not
only
confirms
that
view,
but
shown
a
re-
m.irk.iM"
similarity
to
the
course
of
prices
Inthe
early
months*
of
IST'J.
when
the
most
wonderful
advance
In
production
and
prices
ever
known
in
this
or
any
other
country
wa«
clone
at
hand.
The
key
of
the
situation
is
the
excessive
production
of
some
goods
In
advance
of
an
expected
Increase
in
demand.
So.
In
1879,
conHtimptlon
gradually
gained,
month
by
month,
until
suddenly
U
was
found
that
the
demand
wan
great-
er
than
thepossible
supply.
All
knowhow
prlres
then
advanced
and
th«-
most
marvelousprogress
Inthe
history
ofany
country
resulted
within
two
years.
Reports
from
all
part*
of
trt«
country
now
show
that
retail
dis-
tribution
of
product**
Is
unusually
large
and
Increasing."
Tho
country
Is
today
(IM>7l
running
Into
a
periodof
great
business
activ-
ity:
It
has
but
recently
reached
th.it
point,
in
fact
there
Is
a
difference
ofopinion
among
business
men
today
as
to
whether
business*
Is
im-
proving
or
not—the
improvement
Is
so
gradual.
However.
Dun
&
Cp.'s
Trade
Review
of
June
5.
1597.
says:
It
in
a
difficult
matter
to
make
the
peopUi
believe
thatour
country
In
now
entering
upon
another
period
of
prosperity.
Koch
one
has
a
remedy
for
hardtimes.
And
each
otto
stick*
firmly
to
thoproposition
that
butler
time*
cnunot
come
again
until
his
remedy
Ims
been
Applied.
These
rem-
edies
are
mostlyof
a
political
nature.
One
man
believes
that
a
high
protec-
tive
tariff
Is
all
that
Is
nccctuutry
to
restoreprosperity
to
iho
country,
ana
another
thinks
tho
free
coinage
of
sil-
ver
and
p>lij
on
a
basis
of
16
to
1
without
making
any
suggestions
to
r.ny
other
nation
about
the
matter
would
bring
Rood
times.
There
Is
ao
questionbut
the
legislation
onbotn
the»e>
questions
or
either
of
thcat
would
nftVct
thomainproposition.
Wlg«
legislation
will
always
assist
In
bring-
ing
prosperity,
and
unwise
legislation
will
always
retard
the
coming
of
bet-
tertimes,
but
no
legislation,no
mat-
ter
what
It
be.
can
preventthe
Incom-
»ug
tide
any
more
than
the
little
child
on
tho
sandy
beach
with
its
little
shovel
can.
by
piling
up
a
ridge
of
sand,
stay
the
Incoming
surf.
If
Southern
California
in
general
and
l/wt
Angeles
city
in
particular
can
mako
such
n
allowing
during
n
period
of
financial
deprtjmlon.what
will
lx»theresultwhen
tho
clouds
roll
by
and
prosperous
time*
arc
enjoyed
nKnltt
throughout
the
country
**
large?
in
actual
wraith
Southern
California
him
kept
(tare
with
tho
Increase
of
population,
although
on
account
of
Iho
bunlncfut
depremtion
cif
tho
country
nml
the
decrease
In
valuation
all
ore?
Iho
world.
thlH
Increase
In
wealth
la
not
m
apparent.
With
tho
extraor-
ilinnry
increase
In
populationand
wraith
in
l.«>n
AtiKelcs
city
during
tho
pant
seven
yearn,
nothing
nhort
of
a
fin.uK
iai
depression
nil
over
thocountry
could
have
preventedth.it
city
from
experiencing
aspeculative
boom
of
croat
magnitude.
Again
i-o
far
si
Southern
Calofornln
I*
CO&CCrnod
the
i»
.w
i
vn
yrari
ban
«J«.i!t
\<i>
kindly
with
our
pooplo.
Pouthcrn
California
Increased
In
popu-
latt.'ii
fiuiii
200,000
in
IHUU
to
()V«-r
;:•
•«•
In
IH9O.
I
••»
.\im<|.
„
«
Ity
ban
lin
rcaiud
In
population
front
Gu.ooo
lit
1M»O
to
!••.;•'."
i
n
IHD7,
more
than
doubled.
2
price
of
the
property
Is
an
advance
of
SO
or
100
per
cent
or
more
oa
thecash
investment-
Another
transfer
Is
made
and
another
soul
i«
mad
happy.
In
short
a
speculative
boom
has«truck
the
country
axatn
gradually
but
surely.
This
speculative
Iwom
I
rot
the
result
of
any
mo%-ement
on
tre
part
of
the
peopleor
any
portion
of
them
to
create
a
boom,
nnt
it
i«*
the
T'finli
of
natural
laws
of
busings*
nn'l
In
Just
a*
certain
tn
materialize
an
r
good
cropIs
sur«»
to
b*»
the
result
.»f
favorable
climatic
condltlona.
It
is
not.
perhaps,
in
orderhere
to
d?!wiss
the
millionaire
question
or
in-
quire
into
the
trust
combination*
wblth
threaten
to
disturb
«o
serlotisb
the
busingsint*»r^tij
of
the
country.
It
in.
however,
safe
to
nay
that
thOH"
who
think
durln-
n
period
of
bunln*"*
activity
that
such
activity
will
alwayi
continueare
Just
as
much
mi«»nk'i
a*
are
those,
who
believe
durinf
;«
periodof
bus
In***
depression
that
f'Jrh
business
depression
will
never
<*orno
to
Good
time*
will
follow
bad
time*,
and
bad
time*
will
follow
good
time*
Ju*t
si
surely
as
darkness
follow*
day.
and
day
follows
darkne**.
Thene
tw
|'*ds
nlwayn
hove
followed
enrh
other
on*
theyalways
will.
The
se**i*
of
prosperity
are
sovrn
during
the
periods
of
financial
depr*»«
Hon.
andthe
n***An
of
hard
tlm«*a
»f
Jt?*t
an
surely
*own
during
theperlrH
Ofbusiness
artlvity
and
speculative
boom.
ThereIn
no
question
an
to
the
soundness
of
th»»
conctil»lon.
Then*
is
no
question
that
the***
change*
will
com*.
Tn*
onlyquestion
Is—
wh'-n?
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...