The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-10-30
THE BUSINESS oIr1ook

While believing that a period of bust
ness contraction is now upon the coun-
| try, Henry Clews, the New York banker
| whose sane financial reviews are re-
| garded as sound ard unbiased, express
! es the opinion that the worst troubles
are already over. that there is little
danger of panic in the future, and that
the financial atmosphere has been
cleared as a result of the recent flurries
in Wall Street.
| Never before, says Mr.. C1ews, has
| liquidation on such drastic and extern
| sive scale been successfully met, and
| the result will be that while liquida-
| ton will continue for a time in finan-
| cial circles, it will go forward orderly
and without danger OF panic. One i'm
| portant lesson of the trouble has been
that spectators should be kept out of
| the control of banks. TT is the specu-
| lative element in the banking situation
| which, has been largely responsible for
the present Decentralization" Mr.. Clews
asserts Some of our banks and trust
companies had fallen under the DONNA
ton Of promoters and spectators, who
had neither knowledge nor experience
regarding sound banking methods, and
had no better object in view than to
use these institutions for exploiting
their own questionable operations. Alb
solute elimination of spectators from
the directorates of our banks and our
trust companies is a prime essential to
the restoration OF confidence, and for
tunately this fact seems to be recog-
nized by both the clearing house COM
mittee and the great bankers upon
whom control of the situation has
Col
not rest here. Our banks should re-
strict their operations more strictly to
the legitimate functions of banking.
They should be free of all suspicious
alliances; corporate influences should
he closely guarded against; sound prin-
ciples should be faithfully adhered to.
and higher standards of integrity in
management should be insisted upon by
a plainly expressed public opinion. De-
positors have it in their power to stinl-
ulate reform by showing their prefer
ence for institutions controlled by men
of unquestionable ability and integrity;
placing their funds only where sound
banking and high standards Of conduct
are the first considerations
Mr.. Clews takes the view that an era
of business reaction is already we'll I'M
der way. This will occasion no surprise,
and, viewed in a broad way, it ought
not to be regretted. The fact is that the
country was going too fast. It was try
ing to do more work than it could |
Standard this is injurious to a nation
as we'll as to an Individual There has
been a demand for more labor than
could be supplied. Help has been scarce |
everywhere. The supply of material |
and of some kinds of manufactured |
mand. The product of some factories |
is even yet sold out for months in adj |
vance and this has made trouble in |
other lines of business. If the demands |
of the business world will slow down to |
a point where they can be met without |
feverish and strenuous efforts it will |
eventually be better for all concerned, |
even If spectators are thereby deprived |
of the privilege of getting rich quite so
quick
However. the profits of the farmer.
who is the chief foundation stone of |
national prosperity do not promise any
abatement. This, as Mr.. Clews says,
is lone important fact that should not
be overlooked. Our crops are bringing
profitable prices, and there is sure to
be a good demand, both foreign and
domestic, for all that our farms have
produced. This will prove a valuable
support to business throughout the
country, and will do much to Offset any
reaction in the industrial field