Arizona republican., 1911-12-20

shows further improvement Interna- tiunal friction is passing away. In London financial conditions are better and less uneasineSs is shown over the large amount of new security issues. British foreign trade is eX- ceedingly large in volume, and this. il should be remembered. is the main source of British prosperity In Ger many there has been d very marked revival of trade since settlement of the Moroccan dispute. Banks in Der lin have stood the recent financial strain satisfactorily. and the situation there k gradually fighting itself Re markahle activity exists in the Ger man iron trade. which just now is surpassing all previous records in output The German steamship busi- ness. like the British, is active and prosperous. promising to pay better dividends. The German cotton trade like that of England and the United States. is being greatly assisted by cheap cotton. All Europe. in fact is now enjoying a very fair degree of prosperity IL is hardly rational to suppose that the United States will stay long behind
 This country has been taking an enforced rest cure for nearly two years Since the panic of 1907 con ditions have never been entirely sat isfactory. Liquidation, however. has been long and severe. There is less imitation and more soundness than at any time in the last four years. At least moderate recovery seems justified Business is already feeling somewhat mvigorated and seems pre- pairing to try for a fresh start in 1912. This is shown by the stronger un- dertone and the development of a more hopeful spirit The chief draw back at the moment arises from un- certainty at Washington. Big busi- ness has not vet recovered it's equi- librium from the sudden interference with it's former methods of doing business The country is Wading deep u period of reconstruction of its business machinery. which inevitably means temporary uncertainty as to what the national legislature may do. Nevertheless. as the adjustment to new conditions becomes more complete there will be less complaint on this score The world refuses to stand still Our own population is rapidly increasing Food. clothing and shcl- ter are being required in increasing quantities. our transportation facili- ties are ovcrtaNed. and there is earn est demand for increased production all al mand cannot be indefinitely ignored. New enterprise may be deferred un til uncertainty is at least partially relieved. but production upon an in creaSing scale must gn on as the country grows. Tn some cases con sumption has been checked by high prices and the consequent reduced purchasing power of many consumers, but this hindrance is already finding relief in some directions by lower prices. notably in the iron and cotton goods industries. There are indica- tions Of more conservative spirit developing in congress. though il must not be forgotten that the temptation. if not necessity. for making an occa- sional display for political effect. will remain until after the presidential election. Two weeks have passed without any harmful demonstrations.
 The local money market has shown a slightly firmer tendency. as is usual toward the close of the year, but the return of ease will come after the middle Of January. when the do- mestic money current will commence to flow this way. The low condition of bank reserves. meanwhile. need cause no anxiety. especially as large amounts of American money are still loaned in Europe. Our credit abroad is being further strengthened by the satisfactory condition of our foreign trade. exports still showing large gains over last wear. The Hadley railroad report proved a thoroughly conServa- tive and prudent document. Although it attracted less attention than it de served. it will have an important ef- feet in preventing further illogical attacks upon the railroads
 HENRY CT EXVS