The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-09-14
HIGHEST IN TEN YEARS.

America is long of crops and short
of troubles, whereas Europe is short of
crops and long of troubles.
These are the words with which Mr..
Henry Clews closes his last circular re-
viewing the financial situation. They
were given out by way of proving that
Europe must soon ship gold to this
country regardless of the efforts which
are being made in England to prevent
it. Mr.. Clews announces without any
qualification whatever that prosperity
is here and here to stay. He says:
There is every evidence that the
trade of the country has already recov-
cred its full normal volume and that
the obstacles that have so long OBJ
Structed it have now entirely lost their
repressive force. This is placed beyond
question by the fact that, for the week
ending August 2Sth, the transactions at
all the clearing houses of the country
exceeded those for the like week of last
year by Al per cent while for the month
of August the increase was Sc per cent.
The months volume exceeded that of
August, 1S90.-which was the largest
year in the history of our banking op-
Observation-Disclosures that general
prices are now fully 10 per cent lower
than they were at that period. Further
evidence of the large expansion of bus
mess IS afforded by the loans and dis
counts of the New York city banks. For
the week ending September 4th, this
item stood at $569, 300, 900, which is the
highest sum reached a t that season of
the last ten years.
The city banks are now lending IA
per cent more than the highest volume
ever attained in the history of their OPP
eratiOns- This is incOnteStable proof
that the amount of current business
transactions exceeds all precedent. 1t
is true that we now have about 1O, 90O
600 more population than we had in
1S9O.-the period of highest previous
maximum of loans,-bUt against that
fact must be set off the great fall in all
values that has occurred since that
date"
For all this, neither the tariff nor the
wheat crop is given any credit. Mr..
Clews' explanation of the business re-
vivaI is given as follows:
This sudden expansion to a condition
of normal activity has in it no element
of speculation. 1t is in response to
bona fide wants. and shows none of the
dubious elements of a mere manufac-
fured BOOM" The fact that such a
measure of recovery has come within
the short period of three or four months
Is very satisfactory sign of the sound
financial condition of men of business.
1t means that the weak elements of
credit have been weeded out during the
recent depression and that merchants
have their finances in sound shape for
meeting the requirements of a period
of large commercial expansion.
What may be the magnitude of those
requirements is inferable from the ex-
tent to which the satisfaction of a wide
range of wants has been postponed dur
ing the last four years. In every branch
IF production. excepting those most es-
Sential TO subsistence. this process of
postponement has been in force. In
buildings. in the home and its furnish
ings. in the wardrobe. in our factories
and in the construction and mainte-
nance of railroads. this avoidance of ex-
penditures has been rigidly enforced.
-Four years of this sort of economizing
is probably about equal to the citizens
Total expenditures of one year; and
<hsr years measure of abstentior from
s r-se sipEIy oI ressonaD wants has now
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