The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-12-20
PROBLEMS TO BE SOLVED.

Conditions in the world of trade and
finance are in about the same shape
during the closing days of the year
1910 as they have been for the past few
months. Things are a trff1e dull, bas-
there is nothing in the business or
financial situation to cause alarm.
Some perplexing economic questions
have forged to the front which have got
to be solved and settled before there is.
another great prosperity squirt in this
country. That they will be goes with
out saying, for the aptness of the peo-
pie of this nation is remarkable and
when a proposition has been forced on
them, they have always shown an abil-
ity to handle it. Some of these prob
lens are pointed out by Henry Clewss
the New York banker and economist,
in his current weekly financial review.
He writes about them as follows:
1.-THE feeling is still abroad that.
values generally are upon an inflated
basis. This may be true of COM
modities, but not of securities, which.
are now selling considerably below high.
levels. AS to commodities, some reac-
ton has already set in, particularly in
food products; and the recession there
must ultimately result in partially
reduced cost Of living. AS yet, however,
these reductions have not reached the
consumer, largely because middlemen
are endeavoring to maintain their Old
scale Of profit as long as possible. The
most serious problem which producers
have to face is the high cost elements.
How this is to be reduced, is a prob
lem yet to be solved Some reduction
- N<.a Il -. 4a1~ 1~..4 ~.
will not be sufficient, and cannot offset
the greatly increased cost Of wages and
the advances in rents, taxes, etc. The
best solution would appear to be in
securing more efficiency in labor.
Wages have risen, hours have been
shortened and output restricted until
/ these factors have been a very serious
! element in the increased costs. I'm
! der present conditions it is almost
impossible to ask labor to accept low
err wages. Labor. however. can mater
tally relieve the situation to its own
advantage by encouraging policy OF
greater efficiency and larger produc-
ton. Labor is after all the chief con-
sumner. and while insisting upon ad-
vaneed wages, has been unconsciously
diminishing the purchasing power OF
It's WAGES dAA A1CA OdSAAl5 4bS OWu COSl
of living.
Gas the year draws to close gen.
eral business is quiet in nearly al
departments. Fortunately there are
no serious indications of unsound
conditions At the West some financia
strain is reported, the lower prices fol
farm products having induced farmer.
to hold back supplies, but in this there
is nothing serious. The South contin-
ues prosperous, owing to the large
profits of cotton growing; and the
! country as a whole shows the activit,
and energy inevitable with a rapid
growing population. The East is still
decidedly pessimistic. while the Yves
maintains its Enthusiastically optim.s
tic attitude. The true course probabl,
lies between the two extremes. Oul
iron trade. usually considered the hes
| barometer, continues unduly depressed
. and Is running only about half its ca
} pacity. The state of affairs is due tt
| the inability of the railroads to rails
!, funds. Should they succeed in placing
!. contemplated issues, and should tn
. interstate commerce commission ALLOW
; some reasonable advances. the pros