The Topeka state journal., 1911-09-27
AN IRRATIONAL SITUATION.

Some plain talk to the business men
and fnanciers of the country is con-
tained in the current weekly financial
letter issued by Henry Clews, the New
York banker and economist. ne dis
cusses the recent depression in the
stock market and insists that there is
no good reason for the feeling that
prevails more extensively in the east
than in the west that the country, finan-
cially and industrially speaking. is
booked for the bowwows. He urges
business men to take a calmer and
more courageous view of the situation.
On these matters he writes:
"Of course, there are reasons for
much of the recent depression; reasons
too familiar to require repetition and
which would seem to have been more
than discounted by recent declines.
What strikes the experienced observer
is the entire lack Of nerve and utter
indispositIon TO face any disturbance
with calmne ess or courage. Our finan-
cia1 leaders are not the weak -kneed,
rubber-spined men they now seem to
be. IT is not to be supposed that they
are shivering because of current ad-
verse conditions, or the fact that many
of our huge industrial concerns must
go through the throes of reorganiza-
ton. They know full well that the
country will consume about the same
amount of food and clothing as usual
and that shelter will be as necessary
as ever. They appreciate that the
trusts will continue to work six days
in the week in spite of legal mandates
compelling them to change their form
They know that real values will not be
destroyed. Standard Oil and Ameri-
can Tobacco have gone through the
period of alarm and are earning none
the less because they must dissolve like
other corporations organized In def
ance of law. Many complaints come
from those who are enjoying monopoly
profits, which. if continued, would GER
tainly lead the country to far worse
social and political troubles than now
threaten. True, the correction of such
abuses is never pleasant. Reforms are
always unpopular, and sometimes, and
as at present. we may have an over
Gose of reform; but for this the law
breaker, not the reformer, must be held
responsible One thing is certain, that
If the lawbreakipg monopolies had not
been checked, we should now be on
the highroad to socialism and to far
graver political disorder than now
seems likely W NAT Is now Delu8 en-
dured is not so bad as what might
have been, for which there is reason
to give thanks. It is time that our
business men took calner and more
courageous view of the situation. The
country is resting. 1iquidating, coming
down from the heights of imitation to
a more normal level; and because we
are not rushing on at record d-brealdng
pace and making big profits that is no
reason for the present irrational state
of depression.
''The presidents address on the Sher-
man act on Tuesday was at first some
what misunderstood. It created an en-
tirely unwarranted feeling of uneasi-
ness, when in reality it should have
given ample reinsurance, If correctly
interpreted. Mr.. Taft's attitude tow
ard monopoly is unchanged. He recog-
T,izes, as does any thoughtful observer,
up OF human nature. Monopolies. il is
against public welfare ana has brought
US closer to industrial revolution and
socialism than any other known force
He, therefore. wisely insists upon per-
forming his duty in enforcing the law.
He objects to any revision Of the Sher-
man law because the supreme court has
already built up a series Of interpre-
tations which make the law in its ap-
plication we'll understood. Revision. he
believes, would simply revive agitation
and probably set aside all Of the excel
lent work and thought already expend-