The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-12-10
TRADE AND FINANCE.


the conditions in the business world
and the decline in values on the stock
exchange; Henry Clews, the New York
banker, and a recognized authority in
these fields, makes this interesting
comment in his current weekly hnan-
cial review:
1.-The monetary situation shows some
betterment; liquidation, renewed gold
imports and preparations for the bank
call having placed the banks in a much
improved condition. Indications point
to a continued general demand for
money owing to the wide activity or
business. About the close of the year
rates may advance owing to the ex-
ceptional annual demands, but this
will only be temporary. Speculative
requirements are strictly moderate, for
the reason that legitimate business de-
mands are more insistent and must
first be satisfied.
1.-THE European money markets are
settling down into a more comfortable
position now that the Balkan war is
practically ended. Some of these states
must enter the market as considerable
borrowers in order to pay war debts
much easier to raise such funds now
that the war is ended than if it were
still in progress. In Paris the bank
ing situation is not quite as favorable
owing to continued large demands, but
in London and Berlin there is further
Improvement. 1t is quite apparent
that these demands will continue and
serve to keep money rates upon a
relatively high level for some time to
come. In addition to large commercial
requirements it is certain that heavy
new issues will be made during 1915
so that the money outlook is not with
ont its pitfalls. Under such circum-
stances it is quite proper to again con-
slider the propriety Of releasing treas
ury funds for use in the west ana
southwest when needed. This would
lessen the strain upon the New YORK
banks, and return to the channels OF
business funds which our present IN
efficient banking system locks up IN
times of necessity.
General business in the United
States is active, and the prospects for
its continuance are excellent. Inc
first week of congress passed without
mourning any serious legislative SHOCKS
It has become even more evident tnat
the tariff will be the pre-eminent ques-
ton. and that it will be handled In as
and Notwithstanding a man
ner as possible. The agitation for bank |
ing reform is fortunately gaining in
force. and should receive still wider |
announcement from all classes Of busf- |
ness men. Secretary MacVeagh wisely |
embassies the Importance of such
legislation, showing clearly in his an
nual report that our present cumber- |
some system tends to breed rather
than prevent panics. Unfortunately !
this problem is but little understood
or felt by the masses: hence the great
desirability of a forceful concentration |
of intelligent and expert opinion upon |
this vital question.
1.-THE declining tendency Of values
on the stock exchange need cause no
particular anxiety. Not a few Sc |
curities have been selling rather high |
considering the returns afforded; and |
it must be remembered that interest |
rates are advancing and that shrewd !
investors are shifting from low interest |
and low dividend bearing issues to
those which offer more attractive re- |
turns. This policy is justified by the !
activity Of business, in |
which the United States is now COM |
ing into its full share. Confidence is /
on a higher and more substantial |
plane than for many years; hence capt. /
tai is more ready to venture into new |
fields. The new demand for capital
at home and abroad is enormous; TINS
alone explaining the high interest
rates, and is also a most important
factor in the prevalence of high prices
for commodities and wages"