Though the panic started in October of the year 1907, the year 1907 was really one of the most prosperous years the country has ever known. It would be more fitting if the panic were called the 1908 panic, since the main effect of the panic came in 1908 rather than in the year 1907. It can be seen that the Princeton men had their incomes reduced during the year 1908 so that the average fell below that of 1907. By looking along

IMPORTS

EXPORTS

rmTi

8- &

Cotton Goods

The Philadelphia Commercial Museum

Fig. 70. Cotton Goods Production, Import and Export for the United States. Values are Given in Millions of Dollars

The order of years here reading from right to left gives the first impression that production is decreasing. Compare this illustration with Fig. 71

the curve it will be noticed that though there was a larger yearly increase in salary after 1909, salaries at the end of 1911 had not attained the point which it would seem they would naturally have reached if no panic had occurred at a time so shortly preceding this date.

CURVE PLOTTING

Millions

or Dollars

In Fig. 70 vertical bars have been placed touching each other, with the earlier years at the right. The whole arrangement of the chart is extremely poor and also misleading. In Fig. 71 the data of Fig. 70 have been replotted. The most striking thing about Fig. 71 is the falling off in the rate of increase of production in the decade between 1870 and 1880. The shape of the curve at once starts a train of thought in regard to tariff legislation and other conditions which may affect the manufacture of cotton goods.