The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-10-28
REASONS FOR DEPRESSION.

L
York banker, there is no denying the
| fact that the financial sentiment
| throughout the nation is more or less
| depressed, and that impartial analysis
| of the situation shows very plausible
reasons for this state of feeling. He
presents this analysis in his current
weekly financial review, as follows:
1.-THE credit situation the world over
is unsatisfactory. After several years
of intense activity in England, Ger
many, France, India, China, Japan,
Canada, etc, there are multiplying
signs of contraction and trade reac-
ton. The weakest links in the chain
are the first to give way, Brazil and
India being the latest points to ex-
hibit indications of unsoundness. The
panic at Bombay, though not serious,
arrested attention as a general symp-
tom. The financial strain in Europe
has of course been intensified by the
Balkan war and militarism. No col
lapse happened, because of the steady
restraint on credit imposed by Euro
pean banks. The great financial in
situations of Europe, however, are
still bent upon strengthening their re-
sources, and financial prospects on
the other side are anything but salts
factory There is still an enormous
pressure of new capital issues, suffi-
cient in fact to have forced London
bankers into concerted movement
for Withholding the same until more
favorable opportunities. At home the
money situation while improving is far
from comfortable, the restriction OF
credit provoking a good deal OF COM
plant in commercial circles. Had II
not been for the timely aid offered by
the secretary of the treasury we mleht
even now be facing a financial crisis,
which happily has since disappeared.
Business conditions in the United
States are not encouraging, and there
are symptoms of slowing down in
many directions. This is parity que
to the contraction of credit, and partly
to a loss of confidence, which i'm
poses a restraint upon all new enter
prise and expansion. For this Wash
ington must take considerable blame;
the radical tendencies in evidence
there being an effectual check upon
confidence The new tariff, while it
has stimulated some lines of trade, has
injured others, for the reason that 1t
is quite likely to put out of business a |
number of small and inefficient plants
In regions where crop damage has
been serious there are also complaints
of business. Perhaps the most slgn1fl-
cant feature in the business situation |
was the reaction in the iron and steel
trade This industry has been running |
at top speed for several years, and a
slight reaction would do no harm; but
the sharp decline in prices and the
failure of railroads to come into the
market because of their well known
liabilities had a decidedly depressing
effect upon the steel trade, though re-
ports of shutdowns are yet decidedly
premature Struck by legislation on
one side and by labor demands on the
other, the industrial and railroad in
terests of the United States are facing
which if not averted by a
return to reason and fair play will
soon show itself in lessened demand
for labor and raw materials. When
wisdom and moderation regain their
sway there will be a fair chance for
continued prosperity, but as long as
prejudice and ignorance rule in po-
itical and industrial affairs capital
will be disposed to remain timid.
ION the favorable side of the sitCa-
ton, however, there are these factors
10 be taken into consideration. While
severe harm to the crops was done in
some localities, it is to be remembered
that as a whole the crops were fair
and some sections were favored with
bountiful yields. There
s every indication of a good crop of
cotton, and prices for all agricultural
products are high and must produce
coed profits to growers. The farming
classes, as a whole, are, therefore,
prosperous. So, too, are
he laboring classes. In all parts of
he country there is a good demand
TOR labor, and wages are high. 1t is
rue, the cost of living is also high,
out the tendency of many raw ma
eria1s is downward, and it is chiefly
articles of food which retain their
nigh level. The thrifty ones, however, ;
can often promptly compensate them
selves for this difficulty by eating less
kinds of food and wasting