The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-08-05
FINANCIA1 woRLD F1RNfER.

| F1NANG "oE6LD FIRMEES.
| "All the money markets of the world.
those at home equally with those
abroad, show improvement and an
easier tendency writes Henry Clews,
the New York banker. in his current
weekly financial review. This must be
attributed he continues, ito a univer-
| sal strengthening of banking conGi-
lions by the enforced contraction of
loans. The latter was an unwelcor,e
process. involving a worldwide slowing
down of business activities, a fall in
values of both commodities and securi-
ties, and a very pronounced check up
on new enterprises and new app1ica-
tions for capital. 1t is now thoroughly
recognized that the chief source OF
trouble has been the Balkan war. The
cost and the losses of this bitter strug-
gle are estimated to have been over ST.
200, 600, 900. which fell upon money mar
kets already exhausted by an undue
expansion of credit and an enormous
demand for new capital. The period of
retrenchment thus enforced has proved
highly beneficial; and now the main
source of strain-the Balkan warts
over, conservative recuperation shodld
be the inevitable sequence, and may
prove even more rapid than expected or
desired, if unfavorable circumstances
do not intervene. The continued bel
ligerency of the various contestants is
raving one good effect; it is wearyins
European bankers of financing such
petty warfare.
1T is exceedingly satisfactory to note
that the the United States is exhibiting
greater recuperative tendencies than
any other commercial nation. This is
but natural Our losses from the war
were strictly indirect. Instead OF rev.
cling in a trade boom such Eng
land and Germany have enjoyed for the
last four or five years, We have pursued
with some degree of restlessness a
policy of extreme conservatism, as-
pecially the last two years at least, /
which disappointing as it may have
been for the time being, has left the
American business situation exception |
ally sound. AS result we have passed
through the recent financial strain sue
cessfulIy, and find ourselves really |
strengthened by the ordeal There is no |
exaggeration in saying that so far as
intrinsic business conditions are con-
years been in better position for re- |!
spending to a fresh forward movement. |
Witness the extraordinary report OF
the United States Steel corporation, |
a fair barometer of trade con-
also the continued liberal earn |
ings of our railroads proving that there |
has been no important recession in uraf |
fic; also the satisfactory reports issued |
from time to time by many of our large
esta blishments.
The most important element in our
favor is the prospect of a fine harvest.
AS usual, there are complaints of in
jury, but these are generally local and
not of a serious nature. If present
prospects are realized, We may harvest |
a bumper crop of over 1900, 600. 900 /
bushels of corn; also a bumper crop of
wheat, or about 750, 900, 900 bushels; also
the second largest yield of cotton,
amounting to over 100000 bales.
August is usually month of deteriora-
ton for corn and cotton, so that no
alarm need be felt at any moderate
injury. But the growing season is
"a pidly reaching its end; conditions are
below the average, and max
ing allowance for customary deteriora
ton, we are almost sure to see a Ear
vest considerably above the average.
II is necessary to dwell upon this as
a telling factor in our continued pros
perity.