Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-12-13
IBy --latest Nam

NEW YORK-We are still in the
midst Of period of read iustment;; re.
adjustment TO changing economic, DO.
Iitieai and social conditions. The eco
iiomic changes are such as inevitably
follow D period of exceptional and
Worldwide Industrial activity; while
the political and social changes, par.
ticularly In the United States, are
closely following In the wake of these
developments. Although this process
OF adjustment has gone far and
deep, II cannot be said to have com.
pieted its course; for there are 9th
err changes yet to come, and more or
less legislation Of an unsettling char.
actor must still be faced however
sunwelcOme 1t may be, Nevertheless,
there Is some compensation in the
fact that political and social tend
seen. and It must be remembered that
We are scarcely ever free from pub.
lie anxfeties Of more or less import
ance. and that the ordinary activities
af the country. cannot be permanently
hold back It is further compensation
TO- know that while many of the new
Legislative proposals are hostile to
capital and Viewed with more or less
upeasiness, the tendency toward ex,
treme political radicalism is on the
wane However, tfeer Is still much
uncertainty IN these directions; suff-
cieiits at least to warrant continued
conservatism.
The Mexican problem appears to be
= 4 u III -. :, - S,,,,,
and we are stilI On the edge Of q cri.
SIS Whether this really means q be.
ginning OF the cfumbling of Huefta's
power or not, events only can determ-
Inc. Two important points have def.
initely been settled; first, that Anne
rican intervention will onlyl be an ex.
treme resort, and second, that the
great powers are q unit in support of
our attitude toward Mexico. The out
look ~ Washington for. currency leg
islation though mixed is not entirely
unfayorable The surface prospects,
IL Is true, are somewhat confused by
political cross currents; yet there is
3 strong undercurrent, backed by the
president, In favor of early action up
% this all-lmportant question. AS
time progresses, the Objectionable ele-
inents are being more and more elm
mated from the earlier proposals, and
the outlook Is now for the passage of
q bill In the eafIy months of 1914.
Perhaps the most disappointing eIe.
ment In the business situation is the
multiplying evidence or trade contrac.
ton. This Is conspicuously true in
the east; the great steel industry,
which Is running about so per cent of
capacity leading in this respect. Steel
prices have been much reduced and
there have been rumors of more ex-
tensiye ;shut-downs, much, however;
Of which Is exaggeration. The pres
emit depression In steel is too extreme
TO last, and later on a rush of orders
Is inevitable In the textile trades
there has also been more or less re.
cessi0n, and manufacturers are en-
barTassed BY the high cost of raw
materials and the prospects of in
creased competition In foreign goods
ynder The bower tariff. Our wooden
Industry In particular feels this for
eign competition. SO, too, viii some
OF the liner grades of cotton goods.
The steel trade, however, is compare
lively indifferent toward the tariff, for
the reason that neither Great Britain
nor Germany is able to meet Amer
lean prices under present conditions
So far as general business Is con-
cerned, It is good in the South, where
conditions are unusually sound. At
the West there are some complaints
of slackening business, but as a rule
the situation is much better than
In the East, where depression is much
the ,keenest No lasting depression
seems probable here, because there is
no cverproduction in any important
line Of industry, and mills cannot shut
down long without mourning q serious
shortage, which they are rot likely to
favor. The railroad situation is still
unsatisfactory because of shrfnkage in
traffic and declining gross and net
earnings. A ray of hope however.
exists In the strong arguments which
are now being placed before the In
terstate Commerce Commission for
higher rates. These claims are so
convincing and reasonable that it
would seem impossible for the auth
critics to any longer deny just COM
pensation to the railroads, unless the
commission deliberately wishes to
force the roads into government own.
ership-an attitude that is inconceiv-
ably illogical and improbable.
Another element Of decided encour-
agement is our foreign trade. In Oc-
tober our merchandise exports were
valued at $271, 100000, the heaviest
month on record, and nearly $1,000
600 IN excess of the large figures of
a year ago. Our imports were less
than $1S3, 000, 900, the decline of $45,.