Conservative *
INDUSTRIAL CONCENTRATION AND
PANICS.
The commercial interests of this and
all other manufacturing nations have
suffered disastrously by the recurrence ,
at too frequent intervals , of financial
panics. It is well worth while consid
ering what effect the present industrial
concentration will have upon these
periodic seasons of disaster. There are
sound reasons for believing that if it
does not ultimately prevent them it will
at least ameliorate their worst effects.
If these great concerns are staunch in
proportion to their size , their bulk
should enable them to resist any ordin
ary disturbance.
In a great storm at sea the smaller
craft are damaged or wrecked in great
numbers , while the scientifically built
and skilfully handled ocean liner weath
ers the cyclone as if it were but a gale ,
and comes safely to port. The honestly
constructed industrial combine is noth
ing more nor less than the ocean liner of
the business world. Its powers of re
sistance against ordinary financial dis
turbances are tremendous. Like the
Paris , it may sometimes go upon the
rocks in calm weather by an error of its
commander , but it can defy storms and
reduce danger to a minimum. Indus
trial concentration should strengthen
our industries and place them in a pos
ition to meet all kinds of financial bad
weather with safety. Compactly organ
ized , skilfully managed , properly fi
nanced , such concerns are not likely to
fail , nor are they likely to call upon the
banks for assistance in vain. It is the
small manufacturing concern with in
different executive management that
finds credit accommodations withdrawn
in times of financial trouble.
The worst panics are always the re
sult of an undue speculative expansion
of credit. Something happens to prick
the bubble of universal confidence , and
the whole collapses. Industrial concen
tration ought to go far toward counter
acting this dangerous abuse of credit.
The eager and often reckless competi
tion for trade among manufacturers and
other primary producers has been the
frequent cause of overtrading. Long
datings have been demanded , and have
been given to the small jobber and the
larger retailer. This stretching of credit
has been a constant temptation to these
dealers to extend their own credits be
yond the safe and conservative limit ; in
other words they begin to take chances
and to speculate on the capital of the
manufacturers. This in turn forces the
manufacturers to call upon the banks
for assistance in order to give such long
datiugs to the trade. The vicious cir
cle of credits goes on growing until a
slight shock throws all into disorder.
The careful concentration of an indus
try ought to enable strong-handed and
level-headed manufacturers to curb this
over-buying or speculative tendency on
the part of the distributer. With the
TT
6t hi \
stopping of reckless competition the
manufacturers will bo no longer tempted
to give unsafe credits , and the total
trend of the concentration movement
should bo toward the steadying and
bracing of credits. This should make
commercial and financial panics less
frequent.
The temptation to overproduction ,
which has been the curse of the inde
pendent and keenly competing compan
ies in the past , is removed to a great
extent when these industries become
concentrated. Where the isolated com
panies before went ahead blindly , pro
ducing as much of one thing and as lit
tle of another as then : guesses at the
state of the total stocks might dictate ,
the concentrated company can regulate
the supply to the demand. If it at
tempts to abuse this power by forcing
up prices it will bo punished by the
springing up of competitors. Self inter
est will teach the trusts not to do this ,
but to make their profits by making a
careful forecast of the demands of the
trade and regulating their output accord
ingly and selling their products at fair
prices. When they do this there will
be no temptation to break the market
and sacrifice their product at a loss for the
purpose of unloading. Thus the causes
that lead to panics both at the consum
ing and at the producing end of the
mercantile line will tend to vanish with
the general establishing of the methods
of industrial concentration throughout
the country.
It stands to reason that the size of
these great concerns should increase
their resisting power. In this statement
we do not include such of them as may
be dishonestly overcapitalized ; these
must go the way of all unsound things.
But the fundamental idea of concentra
tion is sound and natural. The com
bining and organizing under the best
brains available is not only a source of
strength and a promise of permanency
in each individual industry , but is likely
to make for ultimate stability in the
whole commercial and financial fabric.
The effect of industrial concentration
upon panics will be worth watching.
WHAT THE PROFESSION OF. FORES
TRY DEMANDS.
These are the things which forestry
offers. Now as to what it demands. In
the first place success in forestry , as in
any other profession , must come largely
from the possession of what we know so
well as "Yale spirit , " the habit of ac
complishment and the willingness to do
the work first and count the cost after
ward. It is interesting to note here that
a majority of the young Americans who
have fitted themselves for technical
forest work are Yale men. Whatever
the connection or the special fitness may
be which brings Yale men into this line
of effort and achievement , I should like
to see the recruits from Yale come in
fast enough to maintain something like
the old proportion.
After the "Yale "
spirit" come sound
ness of body and hardiness , for foresters
must often expect the roughest kind of
ife in the woods. The helpmeet of
lardiness is a contented spirit. There
, s no more pernicious character than a
grumbler in camp , and nothing will
lielp so much to get field work done as
the willingness to bear privation cheer
fully.
A man who takes up forestry will
often find the field work exceedingly or
even unexpectedly hard , for it combines
severe mental work with severe bodily
labor , under conditions which make
each one peculiarly trying. Work in
bhe woods differs profoundly from camp
life as it is usually understood. Forest
ers get a certain amount of hunting and
fishing , and every forester will do his
work better for a wholesome love of the
rod and gun , but the line between work
and play is still sharply drawn.
I have been speaking of the funda
mental qualities which are more or less
necessary to success in any vigorous
outdoor life. There are several addi
tional capacities with which the forester
should be well endowed. The first of
these is the power of observation. It is
often difficult to say a priori whether a
man has it or not. In many cases it
makes itself known as a love of hunting
or fishing , or a general pleasure in all
outdoors. To the forester it is one of
the most essential qualities in his mental
equipment. Finally , perseverance , ini
tiative , and self-reliance are peculiarly
necessary , because the forester is so
often withdrawn from the inspection of
his superiors and altogether dependent
on his own steadfastness and devotion
to keep him up to the high standard ho
should set himself for his work. In a
new field of effort this is especially like
ly to be true. It is one of the distin
guishing characteristics of the profes
sion of forestry. Gifford Piuchot in The
Forester.
AROUND THE WORI D.
According to a recent dispatch from
Europe the Russian Minister of Rail
ways has made an official announcement
that when the trans-Siberian railway is
completed it will be possible to make a
trip around the globe in thirty-three
days. The Minister's estimate of time
required for the different stages of the
journey is given as follows :
DAYS.
From St. Petersburg to Vladivostok 10
From Vladivostok to Ban Francisco 10
From San Francisco to New York 4
From New York to Bremen 7
From Bremen to St. Petersburg Wi
Total
Nations are formed and governments
inaugurated by men for their individual
preservation.
