The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-02-21
BUSINESS OUTLOOK CHEERFUL


BUSINESS OUTLOOK CHEERFUL.
In general business the outlook is
more cheerful, writes Henry Clews, the
New York banker. in his current week
Iy financial review, and he continues:
Trade at the west shows signs of re-
cuperation and the impression is gain
ing that the tide has turned. Wheat
and cotton are declining from their re-
Gently abnormalIy high level. factor
which will help foreign trade, stimu-
late business activity and aid in re-
ducing the cost of living. There are
signs of oncoming activity in the steel
business, more liberal orders having
been placed during the past two weeks.
and now that the railroads are secur-
ing funds it is practically certain that
they will soon become larger buyers of
needed materials. The season is also
approaching when constructive work
will begin in our large cities, and this
also will be an important factor in
stimulating demand. The textile trades
are showing more activity, and as dis
tributors' shelves are bare of stocks
tn outlook is good for increasing de-
mands. Many cotton and wooden mills
are still running on short time, but the
prospects are that they will soon be
obliged to at least partially resume
One of the very best features in the
outlook is the continued expansion III
exports and a decline in imports,
which left an excess of $66,O0O,000 in eS-
ports in January compared with only
10000, 900 a year ago.
These are the favorable elements in
the situation The unfavorable feat
ures are few, yet important enough to
require watching. Among these are
the supreme court cases, which may
not be handed down for some weeks to
comes Nevertheless, the fact that
these decisions will affect nearly LOO
holding companies, having over 5000
subsidiaries and representing more
than $4,000, 900, 600 of capital, means
that a great mass of investors VIII
await the effect Of these alI-important
decisions with intense interest. The
impression gains that these companies
have been working against the law. If
this impression proves correct, it
means a wholesale readjustment of this
mass of capital to legal requirements
OF course, as We have often stated,
this does not mean any destruction Of
property, or loss of rightful earning
capacity, and if the supreme court
should point the way of solution, as
is generally expected, no seriously dis
astrous shock will follow. Neverthe-
less the uncertainty that must remain
until the decisions are announced, will
be an impediment to activity in many
minds and an occasion for apprehen-
sion to others. When the results are
known then We may expect rebound
as expression of relief. Concerning
the railroads, a decision from the in
terstate commerce commission has
long been expected. Something in the
nature of a compromise is anticipated,
since some of the western rates are
known to have been unreasonably
high. and many of the eastern rates
are admittedly very low. Upon the
whole it is evident that the railroads
are not now very fearful as to the re-
suit of this decision; their confidence
being shown by their activity in fnanc-
ind and carrying out projected i'm
provements. 1t is known that some of
the railroads have not earned their
dividends in the last two or three
months, but better things are expected
of the future as traffic increases and
unnecessary expenses arc curtailed.