The Gisborne Times. PUBLISHED EVERY MORNING, TUESDAY, MAY 20, 1008. AMERICAN BUSINESS PROSPECTS.

Gisborne Times, Volume XXVI, Issue 2200, 26 May 1908, Page 2

The Gisborne Times. PUBLISHED EVERY MORNING, TUESDAY, MAY 20, 1008. AMERICAN BUSINESS PROSPECTS.

The remarkable manner in which commerce has become thoroughly internationalised has bc'en brought home to New Zealanders in an- unpleasant manner since the financial crisis in New York produced a depression on the world’s markets that has cost the country at least £2,000,000 in regard to one staple product. At the present time the one hope to which our pastoralists are learning is that the American and foreign Continental demand for wool will sot in again, and ikus .revive a. drooping market. Under these circumstances, therefore ,it is interesting to learn what the prospects for the near future are in the vast territory of the United States. In a recent' issue of Munsey’« Magazine, the proprietor, Mr. Prank Munsey, himself takes up this übj.ect and presents some very interesting facts concerning the financial position as it stbod when he wrote at the end of January. At that time, according to Mr." Munsey, there was a better tone becoming prevalent on the money market, and although there was still a marked feeling of despondency amongst a section of the people, he himself thought-there was little warrant 'fori the doleful forebod--ings of pessimists.; After analysing very carefully the conditions of the factories and the workers throughout the country, he pointed out that there had been a good deal of exaggeration in regard to the proportion lof the population which is unemployed. It was, lie 'admitted, true that many factories had been.dosed down, whilst a much larger number had' reduced their output so that thousands of workers were thus prevented, for the time being, from earning a livelihood, but the proportion of those unemployed to the entire population was, after all, comparatively small. It had to be remembered that there had been ho reduction in the great army of agricultural laborers—over ten millions—who are still carrying on their occupations. On this point Mr. Munsey wrote: “This vast industry is the great basic strength of our nation, and particularly of the industrial situation to-day. The earth has not been affected by this money scare. It has kept its head and its optimism, and will go right on doing business in 1908 as it did in 1907 and 190(1. It will employ as many hands and yield up an equally big harvest. There can ho little reason, beyond a sentimental one, for any great reduction in the consumption of necessities on the part of the ninety-three pier cent, of our workers who are regularly employed. It may safely he assumed that they will follow pretty close to the habits they have formed in the indulgence of comforts and rational luxuries. The seven pier cent., or slightly less, who are out of employment must also live—must have food to eat and clo-

thes to wear, unci a roof over their heads. And so, too, in their case, tlio consumption of tho necessities of lifo must go on. The answer, it seems to mo, to tho problem as to how long a considerable percentage of our factories and industries will be closed down is found . in tho fact that our ninety millions of pooplo must bo led, and clothed, and housed. Tho only question that remains is how long it will be boforo tho stock of materials on hand, if there ho such, will bo exhausted. If it. bo a fact, as I believe it is, that there was no great surplus when this panic occurred, and that there is no great surplus to-day, it is certain that all, or nearly all, of our factories must soon resumo uctivo work. I myself am so thoroughly optimistic that if 1 wore a manufacturer of staples, the necessities of the peoplo, 1 should run my factories to tho limit of my ability to finance them, regardless whether for tlio immediato present 1 was selling tho wholo of my product or not. I believo that tho moil who do this—who have tho foresight and the courage -to do this—will find this year, 1968, one of tho markedly successful years in their history. That there will bo a demand lor goods is certain. Square tlio problem to tho ninety millions of con-

sumers, and you will got tho answer.”