The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-02-05
THE BUSINESS SITUATION.

4
uation and discusses at some length
the proposed inyestiation of the emon-
| ey trust In his view the situation
| is still one that calls for conservat-
ism in business operations. Neither at
home nor abroad is there any abate-
ment OF the social and political UNI
rest which is at the bottom of present
business inertia. This unrest, as
everyone knows, has been seriously
aggravated 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 sum-
mer. Prices of nearly all of the
necessities OF life are high, since in
few instances is there anything like
an adequate supply to meet the re-
quirements of increased population
In few cases commodities have de-
clined markedly, particularly cotton
and steel where supply greatly ex-
ceeded demand. We now hear less
and less about the increase of gold
as factor In high prices. As to this
Mr.. Clews says:
In this connection It is worth
While noting that the worlds produc-
ton in 1910 amounted to 1854. zoe. 600.
compared with 1854. 100000 in 1909.
an insignificant increase. So good an
authority as Director Roberts of the
mint thinks there Is no longer any
reason for uneasiness ovtr the gold
situation. He believe that no further
important increase of supply is in
sight. and that with growing popula-
ton and increased absorption of gold
its infiationary effect has probably
reached high water mark If this
theory proves correct IT means that
producers, especially farmers, must
increase their product in order that
the relations between supply and de-
mand 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 renewed
activity. This disturbing influence
must probably be endured until the
political horizon becomes more 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 inves-
tigation will be postponed until after
election Whether this investigation
has been prompted by political mo-
tives, personal jealousies or specula-
tive purposes. Mr.. Clews eounsels
that it should be severely discourag-
! ed by sane business men. What
would happen" he inquiries. "if a
number of our financial institutions.
the savings banks, for instance. were
j 10 be put under the searchlight for
the entertainment OF public wholly
/ ignorant OF financial transactions?
Here is his answer to this inquiry:
The result would be immediate
scare and a run on the concerns af-
fected. no matter how sound or we'll
conducted they might have been.
Whatever objections there may be
10 the concentration of banking pow
er IN New York, an investigation in
sIgated fer such reasons as are be.
hlnd tie present movement Is wholly
unwarranted and threatens serious
consequences. There may ke 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 al every financial center
AN the world. II is natural and newt.
able, and is almost invariably used for
wise and prudent ends. The abuses OF
such power are too rare to call for
serious attention, much less a public
investigation. There is no such thing
as money trust in the correct
sense OF the word. for II is impossible
to create monopoly in either credit
or money. The supply OF both is toe
great and flows too resdiiy from one
point 10 another TO allow of corner
ins. II the terms which one lender
offers are TOO exactiur. there are I'll
ways plen,y of other lenders avail
able. il sought after. Great as Is the
banking power of New York. ii is on
" fraction Of that OF the entire
country, and its influence is common
IL exaggerated. Comntroller MURRAY
Is authority for the statement that
the combined banking power of New
York, Chicaeo and St Louis. three OF
: the PRINCIPAL reserve cities Is onf,
aho'Ii ore fourth o. that of the entire
United States II it were possible Il
create rlcuev ;r''s' n I'll.
5 country, borrowers would turn I,
Fpro7e for aid wite promptnes,
g ~ TorIa aNicklv break any monopo
d The general situation as Mr. Clew,
i seas i is not without its redeeinins
features Chief cf Fhese Is tho plenti
: M sunnlv q chean money a'thonel
! swat, Of course is largely the resul
+ q inactivity onr financial sisnatioi
( Is eyoen'ionaily sound SnecBiation i
at the minipum and liquidation he.