The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-17
IN THE WORLD OF TRADE.

Although there is nothing to cause
alarm over the conditions that exist in
the business and financial world, they
have developed into a situation which
demands serious attention. This is the
opinion Of the conservatives in the
world of trade. They are voiced in an
interesting and instructive fashion in
the current weekly financial review is
sued by Henri CIews & Co., of New
York. Mr.. Clews writes on this i'm
portant subject as follows:
Capital just now is in demand. and
being comparatively scarce because of
the country's diminished savings easily
commands better rates than formerly.
Ihe fact that money rates are lower
does not indicate an abundance of
capital so much as an abundance of
currency, which accumulates because
of dullness in trade and contraction of
credit; not to speak of the unwhole-
some initiation of the currency arising
from our clumsy and inelastic system.
The business situation demands more
serious attention. 1t is certainly not
entirely satisfactory. On all sides
there are indications of contraction.
No improvement can be recorded in the
iron trade, which continues to run at
about half its full capacity, leaving
many hands out Of employment. Prices
are being continually cut by the indie
pendents. and the great Steel Corpora
ton persists in the questionable policy
of resisting the natural conditions.
When Mr.. Carnegie was at the head OF
the steel business he was noted for the
promptness and skill with which he
met the natural to and fro movements
of the market, the result being a much
healthier situation than exists today.
Consumers cannot and will not pay
present prices. The only true policy *
to meet actual changes in condition
and lower prices to a point that will
bring orders. Activity will then be re-
stored, closed furnaces will be started
and idle labor will be re-employed-
possibly at lower wages, but better that
than idleness. Should the railroads
procure concessions in rates from the
interstate commerce commission the
placing of pending issues will undoubt-
eddy be greatly facilitated, and a large
proportion of the funds thus raised will
of necessity be spent in the steel and
allied industries. This would give A
powerful stimulus to these trades and
| naturally have a beneficial effect upon
business at large. Presumably the in
terstate commerce commission will
| ing their decision. For years the steel
| organization has endeavored to resist
| economic law and run upon a policy
| of restricted output and high prices
| rather imam keeping the market Tuil at
| the price it can pay. Its present policy
of restriction, If carried out to a logical
conclusion. would mean that famine
was the basis of prosperity, which is of
course absurd.
The cotton industry is also suffering,
not so much from artificial restriction
as from the high prices necessitated by
| shortage in the cotton crop. Manufac-
i turers are in an exceedingly awkward
! position for the reason that consum-
ers will not pay present prices. and any
reduction would simply wipe out all
mill owners profit in view of the pres
i ent price of cotton. In consequence
both northern and southern mills are
seriously discussing further shutdowns
The leather industry. too, is in a criti-
! cal state and is suffering from over
production of hides. An extensive shut
down movement is now being in
| augurated In copper the situation
fails to improve, overproduction here
also being a serious menace. What the