The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-08-20
BUSINESS s1rUArIoN GOOD.

/ IN the Il1dHCtdA dlAN
| business world are not nearly as bad
as some Of the pessimists and polit-
ical indictments would paint them.
Indeed. they are pretty satisfactory,
all things considered, and give every
indication of a healthy activity be-
fore very long. Testimony to this
end is to be found in the current
financial review of Henry Clews, the
New York banker. and an economist
of recognized authority. He points
| out the radical improvement of late
| in the money markets all over the
world and calls attention to the fact
that the monetary position at all
financial centers in this country has
greatly improved. Bank reserves
have been rising as a result of a per-
sistent policy of conservatism, and
there is no longer any danger of
financial crisis or panic. The coun-
try is now abundantly able to
finance it's autumn crop and business
requirements, and the renewed cour-
age felt in banking circles is extend
ing itself to Industrial and CONNER
ciaI quarters. In this improvement
the treasury under its present guild
ance has been an important FACTOR
Its policy has been to manifest apso-
lutte readiness to afford all possible
legitimate aid to business. Natural
IN it has had a most stimulating eff
feet upon business sentiment; the Of
fer to deposit $50,000,000 or more OIL
reserve funds in the west and south
having had the effect of making those
sections very largely independent OF
the New York banks This last
named offer of the treasury creates
fully $20O,0OO,000 of new credit, and
must therefore be regarded as
transaction of an inflationary nature
Its immediate effect has been to Gre
ate easier conditions among the New
York banks. and the sudden RELIEF OF
monetary pressure has inevitably
stimulated speculative activity. Com
mercial paper is decidedly easier and
in good demand: 5 u to per cent
now being quoted for 80 days, with
proba bly, lower rates later on.
There are other reasons, however,
for regarding the situation as more
satisfactory. The tariff bill will soon
become law. Its provisions are pretty
we'll settled and have been largely
discounted. AS soon as the bill is
definitely passed there will be
prompt resumption of Industrial and
alive by the gap in supplies after
nearly a years conservatism in buy
ing and selling. The prospects of
more satisfactory currenscy Dill are
increasing daily The progress of the
new measure is somewhat painful and
slow, but such changes as have been
made in the proposed bill are gener-
ally of desirable nature, and a rea-
pass the house during this session of
congress The senate is somewhat
doubtful. although it remains to be
seen as to how far President Wilson's
growing influence will overcome that
obstacle.
THE reports from the business
centers of the west are exceedingly
encouraging. There is general actiV-
itv at all the principal comm ercial
centers and little or none of the
gloominess which has been so con-
spicuous in the east. The one point
of disappointment in the present sit
uation is the unquestioned damage to
the corn crop, which conservative es-
Inmates now place at about 100000
900 bushels less than a year ago. This
is a real disappointment which should
not be underestimate. 1t is quite
possible, however, that the damage
has been exaggerated to some extent,
and it should not be overlooked that
in the northern section of the corn
belt there has been considerable i'm
provement in condition, which may
partially offset the losses in Kansas,
Missouri and Oklahoma. In other
respects the crop outlook continues
satisfactory. Wheat, as is we'll
known, promises a bumper crop. A
large cotton crop seems also assured
though this crop and corn will be in
danger of early frost for several
weeks to come.
There has been some cessation of
activity in the steel trade as we'll as
a reduction in prices. The latter,
however, promise to stimulate or
ders. which are sure to come with in
creasing volume as the trade recovery
already started makes further prog
ress. Easier money will also facili-
tate new orders. Current railroad
earnings when reported are likely to
show satisfactory gains. There has
been an unusually heavy grain move
ment. particularly of wheat, during
the last few weeks, and August re-
turns should prove more encouraging
than those of previous months"
COUNTRY LIFE PROBI.ENI