New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-11
REVIEW AND DIGEST
Important international QueS-
tiOnS of the Week.
BUSINESS CONDITIONS
The Currency Issue and Atti-
tude of American Bankers
Association.


Association.
Problems Of an international charac-
ter and influence during the last week
reached a degree Of unusual interest.
and some relief was felt as a result OF
the removal Of much vague uncertainty
regarding the future in certain impor-
tant questions. The issue more closely
associated with the United States, hav-
ing an international bearing, Is the
Mexican rebellion. Information gath
cred from the report Of former Minis
ter Wilson and through other sources
Of a more or less private nature mas
brought the Washington administra-
ton TO a point of understanding ana
action that promises some definite re-
suits OF a more or less satisfactory
character. II reports published may
be depended on affairs in Mexico nave
become so critical that unless some re-
lief is soon afforded American lives
and property will be further leopard
lied and the loss 10 American investors
will total fabulous sum.
The signing of the preliminary pa
pers in an effort to establish peace
among the belligerent Balkans partially
removed from the foreign field an irri-
tation which was approaching the
chronic stage and had overshadowed
Continental Europe with a fear when
had menaced the monetary situation
since last fall and had been RESPONSE
BILE for hoardings estimated 10 be
around three-quarters Of billion dol
lars. While the immediate erect III
this preliminary move will not be so
apparent, the final chapter in Near
East warfare will be pronounced IN re-
leasing the gold Accommodations among
the masses on the Continent. Ihls
preliminary, however, will have salu-
tary effect on the minds of the people
and should check the tendency to fur
Their hoardings. followed by gradual
restoration Of confidence and revival
Of trade industry and investment.
A view Of the conditions in the
United States as accepted by the Mid
die West after a careful canvass or the
whole country is given in the general
summary prepared by the Continental
and Commercial National Bank Of Chi
cago, Of which George NJ. Reynolds Is
president. An extract from the sum
mary is quoted:
Manufacturing as a whole is In good
shape. Most concerns have plenty Of
business, though. Of course. there has
been the usual letdown in volume and
activity during the summer months.
The lumber industry and mining may
be called fair, though somewhat spot
ted as TO locality; building operations
have proceeded slightly below the ordi-
nary activity, but the industrial situa-
ton as a whole seems 10 be good. in
fact, the correspondence TO the Cont
mental and Commercial National Bank
indicates that manufacturing Indus
tries, commercial establishments and
agricultural resources Of the West were
never In a healthier condition, except
ing, OF course, those lines of trade
which depend. almost wholly upon the
railroads for orders.
IN an analysis Of a financial and
business situation such as exists at the
present time, the chief difficulty lies in
determining with any degree OF ac-
curacy Just what weight should be CIV
en- individual fundamental factors. Nor
can the experiences OF the past be ac-
cepted as an accurate criterion, for the
reason that these factors in similar
periods do not At In with the same ex-
actness. In other words. 1t is difficult
TO find two periods where all condi-
tions are exactly alike. This accounts
for the divergence Of opinion in many
instances regarding the outlook for the
immediate future. 1t is necessary,
therefore, 10 consider these fundament-
al factors In the light OF experiences
as a guide In seeking TO determine
what lies ahead. rather than as the
basis Of an accurate prediction Of the
future course Of business.
1T is generally accepted among
economists and business men that the
crops are the dominant factor In this
country in determining the trend Of
business and security values. as large
crops tend to stimulate business activi-
ty and increase the earning power Of
corporations. which, other conditions
being normal. enhances security values
At the same time the production Of a
large crop, owing to our defective
banking system, frequently contributes
to a strain on credits during the period
OF marketing. But even this varies
with conditions and years.
"Advices from all sections OF the
country indicate a production from the
soil this year which, barring accident
or serious damage from the hot. dry
weather since these reports were col
lected, may be reasonably expected to
approximate in value the creation Of
new wealth from that source in ordi-
nary years. This means that we will
produce in material wealth during the
current year somewhere between 49,,
coo, 900, 900 and $4,000, 1000, 900 from the
soil. The recent hot weather has had
serious deteriorating effect on the
nd uFhn fc laH hat