The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-12-02
4 PERIOD OF READJusT1dENEr.


I'VE are still in the midst Of per-
iod Of REIMBURSEMENT; readjustment to
changing economic. political and social
conditions" writes Henry Clews, the
New York banker. in his current week.
ly financial review. The economic
changes are such as inevitably follow
a period Of exceptional and worldwide
Industrial activity: while the political
and social changes. particularly in the
United States, are closely following In
the wake Of these developments. AL
though this process Of readjustment has
gone far and deep. It cannot be said
to have completed its course; for there
are other changes yet to come and
more or less legislation Of an unsettling
character must still be faced. however
unwefcome 1t may be. Nevertheless.
there IL some compensation in the fact
that political and social tendencies can
now be more CLEARLY foreseen. and it
must be remembered that we are
scarcely ever free from public anxieties
of more or less Importance, and that
the ordinary activities Of the country
cannot be permanently held back
Perhaps the most disappointing ell
ement in the business situation is the
multiplying evidence Of trade contrac-
ton. This IL conspicuously true in the
east; the great steel industry, which is
running about 60 per cent Of capacity.
leading in this respect. Steel prices
have been much reduced and there have
been rumors of more extensive shut
downs, much. however, of which is ex-
aggeration. The present depression in
steel in too extreme to last, and later
on a rush of orders is inevitable. In
the textile trades there has also been
more or less recession. and manufac-
turers are embarrassed by the high cost
of raw materials and the prospects of
increased competition ir foreign goods
under the lower tariff. Our wooden in
dustry in particular feels this foreign
competition. So, too, will some OF the
finer grades Of cotton goods. The steel
trade. however, IL comparatively indif-
ferent toward the tariff, for the reason
that neither Great Britain nor Germany
are able to meet American prices under
present conditions. So far as general
-
south, where conditions are unusually
At the west there are some
of slackening business. but
as a rule the situation is much better
than in the east, where depression is
much the keenest. No lasting depres-
is no overproduction in any important
line of industry, and mills cannot shut
down long without mourning serious
sic rtage, which they are not likely to
favor. The railroad situation is still
unsatisfactory because Of shrinkage in
traffic and declining gross and net
earnings. A ray Of hope. however, ex-
lists in the strong arguments which are
now being placed before the interstate
commerce commission for higher rates.
These claims are SO convincing and
that it would seem impossi-
BILE for the authorities to any longer
deny just compensation to the rail-
roads. unless the commission deliber-
ately wishes to force the roads into
government owneship-an attitude that
is inconceivably Illogical and improba-
BILE.
Another element Of decided en-
couragement is our foreign trade In
October our merchandise exports were
valued at $271, 100000. the heaviest
month on record. and nearly 81, 000, 900
In excess of the large figures Of a year
ago. Our imports were less than $780,
100000. the decline o. $45.000.000 being
due to the heavy thrush of September
to take advantage of the new tariff:
as well as caution by many importers
to await the effects Of the new sche-
dulles at home and abroad. The ex-
cess Of exports over imports for the
month was more thar $13S, 900. 900; a
balance Of extraordinary Importance,
and one that materially strengthens
our credit abroad. which was already