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The Situation in San Francisco
San
Francisco has almost used up the $180,000,000 insurance money paid
after the fire and earthquake in the work of recovery, and the banks
of that city have gone about as far as they deem prudent in loaning
funds. Now, Eastern capital is being sought, and, it is intimated,
with things settling down on the Pacific Coast, no great difficulty
is apprehended in obtaining capital as it is needed. A great deal
will be required, but the municipality of San Francisco was peculiarly
free of debt at the time of the disaster, and has a large borrowing
capacity.
Ex-Mayor
James D. Phelan of San Francisco has been in this city, looking over
the financial field. He sets forth the political and financial position
of his city in detail. Asked whether the work of reconstruction had
been as rapid as had been expected he replied:
"During
the year since the fire the work of reconstruction has been very extensive
and rapid, so much so that it has really given rise to the labor troubles
which beset us today. You will recall that San Francisco invited mechanics
of all kinds to come to the State and help to rebuild. The insurance
companies paid $180,000,000 in losses, and money was abundant among
the people and in the banks."
"Was
any considerable portion of the money paid for insurance used up by
the people for the necessities of life?"
"The
people, having been cut off from their income, naturally used part
of the insurance money for living expenses during the year, and, perhaps,
developed some extravagance of living. Others, more thrifty, saved
their money, or used it in the reconstruction of their temporary houses.
"But
to return: The large army of laborers that came to San Francisco from
the interior of the State and outside the State and the abundance
of work for them created an artificial condition, and wages and materials
advanced. Now that the emergency period is past, an economic readjustment
is going on, which has caused the recent friction. The labor leaders
in San Francisco, when money became scarce last month, by reason of
the extraordinary demand for rebuilding, asked whether the banks had
not conspired with a view to lowering wages and reducing prices. That
is always a natural suspicion on the part of laboring men, but I have
abundant evidence that the scarcity was due to legitimate causes.
As in the case of Baltimore and Chicago, it became plain that Eastern
capital would have to be enlisted in the work of reconstruction, and
in order to interest Eastern capital normal conditions as to wages
and material should be restored as speedily as possible. If there
is no money, there is no work, and labor will be the first to suffer,
because people temporarily housed are not obliged to build, and they
will only build permanently when prices are favorable.
The Situation in San Francisco
San Francisco has almost used up the $180,000,000 insurance money paid after the fire and earthquake in the work of recovery, and the banks of that city have gone about as far as they deem prudent in loaning funds. Now, Eastern capital is being sought, and, it is intimated, with things settling down on the Pacific Coast, no great difficulty is apprehended in obtaining capital as it is needed. A great deal will be required, but the municipality of San Francisco was peculiarly free of debt at the time of the disaster, and has a large borrowing capacity.
Ex-Mayor James D. Phelan of San Francisco has been in this city, looking over the financial field. He sets forth the political and financial position of his city in detail. Asked whether the work of reconstruction had been as rapid as had been expected he replied:
"During the year since the fire the work of reconstruction has been very extensive and rapid, so much so that it has really given rise to the labor troubles which beset us today. You will recall that San Francisco invited mechanics of all kinds to come to the State and help to rebuild. The insurance companies paid $180,000,000 in losses, and money was abundant among the people and in the banks."
"Was any considerable portion of the money paid for insurance used up by the people for the necessities of life?"
"The people, having been cut off from their income, naturally used part of the insurance money for living expenses during the year, and, perhaps, developed some extravagance of living. Others, more thrifty, saved their money, or used it in the reconstruction of their temporary houses.
"But to return: The large army of laborers that came to San Francisco from the interior of the State and outside the State and the abundance of work for them created an artificial condition, and wages and materials advanced. Now that the emergency period is past, an economic readjustment is going on, which has caused the recent friction. The labor leaders in San Francisco, when money became scarce last month, by reason of the extraordinary demand for rebuilding, asked whether the banks had not conspired with a view to lowering wages and reducing prices. That is always a natural suspicion on the part of laboring men, but I have abundant evidence that the scarcity was due to legitimate causes. As in the case of Baltimore and Chicago, it became plain that Eastern capital would have to be enlisted in the work of reconstruction, and in order to interest Eastern capital normal conditions as to wages and material should be restored as speedily as possible. If there is no money, there is no work, and labor will be the first to suffer, because people temporarily housed are not obliged to build, and they will only build permanently when prices are favorable.