The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-02-05
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

| 7Ol " LIN II
NEW YORK. Feb. 5.-The situation
is still one that calls for conservatism
in business operations. Neither at
home nor abroad Is there any abate-
ment of the social and political unrest
which il at the bottom of present bust
ness inertia. This unrest, as every
one knows, has been seriously agra
waited by the continued high cost of
living. Food prices have risen still
higher during the last few weeks, both
at home and abroad. owing to partial
crop failures arising from the extreme
heat and drouth of last summer.
Prices of nearly all of the necessities
of life are high, since in few instanc-
es Is there anything like an adequate
supply to meet the requirements of in
creased population. In a few cases
commodities have declined markedly,
particularly cotton and steel where
supply greatly exceeded demand. We
now hear less and less about the in
crease Of gold as a factor In high
prices, and in this connection it is
worth while noting that the worlds
production in 1910 amounted to $454,-
100000, compared with $454 100, 900 in
1909, an insignificant increase. So
good an authority as Director Roberts
of the Mint thinks there is no longer
any reason for uneasiness over the
gold situation. He believes that no
further important increase of supply
Is in sight, and that with a growing
population and increased absorption
Of gold its inflationary effect has prob
ably reached high water mark. II this
theory proves correct it means that
producers, especially farmers, must
increase their product in order that the
relations between supply and demand
become more normal, and we shall
then have some relief in sight from
the present high cost of living, which.
as already said, has had SO much to
do with public distemper.
At home the political situation con-
tinues the chief deterrent to renew
ed activity. This disturbing influ-
ence must probably be endured until
clear. Some uneasiness has been
shown at the prospect of investigating
the so-called Money Trust" but this
has been lessened by hope that the
investigation will be postponed until
after election by political motives, per-
sonal jealousies or speculative pur-
poses, 1t should be severely discourag-
al hy coma hOoiuoSo man What would
happen II q number of our financial in
situations, the savings banks, for in
stance, were to be put under the
searchlight for the entertainment of
public wholly ignorant OF financial
transactions? The result would be i'm
mediate scare and a run on the con-
Germs affected, no matter how sound
or we'll conducted they might have
been. Whatever objections there may
be to the concentration of banking
power in New York, an investigation
instigated for such reasons as are be-
hind the present movement is wholly
unwarranted and threatens serious
consequences. There may be an un-
desirable local concentration of credit
institutions. but an awakened public
opinion and spirit of independence
in business operations is the best cor
receive of that difficulty. A certain
degree of concentration in banking
power exists at every financial center
in the world. 1t is natural and inevi-
table. and is almost invariably used
for wise and prudent ends. The abus-
es Of such power are too rare to call
for serious attention, much less pub
lie investigation. There is no such
thing as Money Trust" in the cor
rect sense of the word. for 1t is inn
possible to create monopoly in eth
err credit or money. The supply Of
both Is too great and flows too readi-
~ from one point to another to allow
of concerning. II the terms which one
lender offer are too exacting, there
are always plenty of other lenders
available, If sought after. Great as is
the banking power OF New York, it Is
only q fraction Of that Of the entire
country, and its influence is common
ly exaggerated. Comptroller Murray is
authority for the statement that the
com bined banking power of New York.
Chicago and st. Louis, three Of the
pflneipai Feserve cities, is only about
one-Iourth Of that Of the entire United
States II 1t were possible to create a
"Money Trust" in this country, Dor
rowIre would turn to Europe for aid
with . Dromptness that would uiqckly
1fSak any monopoly here.
tn general outlook Is not without
III redeeming features. Chief Of these
10 the plentiful supply OF cheap mo-
ney. although that of course. is large
~ the result of inactivity. Our finan.
cial situation 10 exceptionally sound.