The Topeka state journal., 1913-09-23
BUSINESS PROSPECTS GOOD.

| A review and discussion of the crop.
business and financial conditions
| throughout the country by Henry
| Clews, the New York banker. in his
current weekly financial review, indi-
1 cate a firm belief on his part that
business, generally, will pick up ma
terially before long And he presents
| reasons that appear to be conclusive.
He writes, in part, as follows:
| while we have not had a crop
/ calamity. the developments in the
| agricultural sections since the first of
August have not been favorable. 1t
| has been necessary ito quite severely
revise earlier estimates of harvest
prospects. This unfortunately has
proven especially true in respect to
| our two most important crops. name
lv. cotton and corn, which have for
wears been running a stubborn race
for the honor of premier position as
a producer of new wealth. Winter
wheat and, in fact, the total wheat
crop, has, it is true, set a new stand
ard, and it is proba BILE that final re-
turns will as usual show that the gov
ernment's experts have erred on the
side of conservatism in their forecast
of cotton and corn. Nevertheless, it
is not advisable to gloss over the TACT
that severe damage has taken place
and that there will necessarily be
restriction of railroad tonnage in the
drouth-stricken regions from the vol
ume that was expected a month or so
ago. On the other hand, railroad ton
mage will undoubtedly receive ms
tinct impetus from the return to nor
NAL in the business world resulting
from the more settled conditions TO
follow the final enactment of the new
tariff, which is now so closely IN view:
There has for a year or more peen
gradual curtailment of manufacturing
and of distribution of merchandise
awaiting the new conditions that will
attend the entrance of foreign mer-
chandise at lower rates of duty. our
bonded warehouses are filled with i'm
portations that will be withdrawn for
consumption as soon as the new Gus
tom rates become operative General
business of a domastic character, too,
will attempt to adjust itself to the new
conditions 1t is yet to be demon
strated how satisfactorily our indus
tries will be able to make such an
adjustment But for the moment this
larger question is not specifically in
volved. as there will be active encour-
attempt to return to a normal volume
of distribution. The restriction OF
general mercantile and industrial ac-
tiyities has been so protracted that
the ordinary channels of wholesale
distribution are without adequate sup
plies of merchandise on hand, shelves
of retailers are not filled with their
normal volume of stocks, and there
has naturally been some disposition
among consumers, also. to hold back
from purchases with the view of OBJ
tanning better results. Reaction from
these influences suggests period OF
mercantile enthusiasm that may or
NAV not prove to be fairly permanent.
For the moment, however, it should
have a stimulating influence on the
traffic statements of our great trans
portation systems since the improved
volume of traffic will consist very
largely of the higher classes of freight
which pay correspondingly high rates.
'"The immediate money situation
promises some degree of firmness,
though there is no prospect of acute
stringency. The greater volume of
trade will require a corresponding
volume of banking accommodation.
The crop demands are now nearly at
tSelf nolSnI. anu Tie lat lldl lIC
banks in the agricultural sections of
the country are not showing greater
enthusiasm in their applications for
deposits of public funds in accordance |
with the offer of the treasury depart |
ment to distribute $50,000,000 are sus- |
gestive of q continued demand upon
the banks in this and other large CEN |
tcrs for funds without important |
change from the practice of previous /
years The necessity of purchasing |
security to be furnished for the treas !
ury funds does not seem to freely ap- f!
peal to the interior banks. They see |
in the transaction possible loss when |
they shall find it necessary to sell the |
bonds that no longer will be needed |
for the specific purpose for which |
they would have to be purchased |
Furthermore, the restrictions imposed |
by the treasury rules on the character |
of commercial paper to be deposited |
against the more general ac-
ceptance of the treasury's offer. Thus, |
if there are to be the usual demands !
upon the banks it becomes a fact that |
can hardly fail to be reflected in !
money rates, though, as 1 have al i
ready intimated, I do not look for the ;
of acute stringency."
~ !
HAVE GOOD TIME. |