The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-12-16
THE BUSINESS ANOMALY.

THE BUSINESS ANOMALY.
There's a rather unusual anomaly
in the business and financial sftua-
ton in this country. Economic con-
ditions here are sound. and yet the
depression in business continues on the
increase. This fact il pointed out ana
discussed by Henry Clews. the New
York banker. in his current weekly
financial review, az follows:
"A careful search Of the business
situation fails to find any very en-
couraging features. December u al
ways a month of slowing down. but
this year the tendency u more
marked than usual. The causes are
both economic and political Tho
most fundamental reason is the world
wide high cost of capital. the signs
of recession on this account are quite
as pronounced abroad az In the united
States. In Europe the situation u ag-
Rravated by militarism, and In Canada
by a too rapid expansion. Neither OF
these conditions exist In the United
States. There has been no serious
oyerstrain of credit in this country;
nor any overexpansion in general
business. On the contrary. the bank
ing situation is pretty well In hand'
and our various merchandise markets
are more likely to suffer from scare
ity than from overproduction. AS a
matter of fact economic conditions In
the United States are sounder and
more encouraging than those prevail
ing elsewhere. And yet business de-
preston is nowhere 10 marked as
along the seaboard Of the United
States. and this depression Is gradu-
allv extending itself throughout the
west and south. Why should this
country suffer keener recession in
business than any other country when
intrinsic conditions are generally
sound? There is no other explana-
ton for this unfortunate condition OF
affairs except that OF pernicious po-
litical activity. What with the med
ding of visionary reformers and the
attacks of radical politicians upon all
forms Of business activity. legitimate
enterprise has been almost literally de-
stroyed The spirit to venture and
invest, which is the mainspring of in
dustrial progress, has been thwarted
in every direction by constant OPP
preston. Our new freedom may
be born, but It is not yet even a lnsty
infant, and the country is suffering
sadly from unwise interference or
injustice emanating from
political influences. There are signs,
however, Of a change in this direction;
Mr.. Wilson, although progressive OF
power, seems quite in
clfned to curb the ambitions OF ex-
IRENE radicahsm. and there are indi-
cations elsewhere that our visionary
political leaders will be forced to, sit
up and take notice Of the conse-
quences Of their actions. Especially
will this be true when the army of
increases. as 1t surely Will
unless business men are spared this
incessant irritation and interference
with legitimate enterprise.
The foreign financial situation ap-
pears to be slowly working out OF its
into a more satisfactory po-
sition. No little disappointment fol-
lowed the delay in placing the French
loan, the successful con-
of which would have been
of material benefit to the international
money markets. Nevertheless. French
bankers are actively at work in COM
pleting the financial adjustments of
the Balkan loans: and when these are
finished the way will be still easier
for handling the French government
loan. The success of this loan will
largely depend upon it being able to
bring out the boarded money; IL it ac-
that result its good effect
will be worldwide. London continues
to keep a restraining hand upon the
output Of new securities, which 1t is
known would be very heavy were it
not for such restraints. Time will be
necessary for replenishment OF the
reduced supplies OF capital In the
worlds markets, and any substantial
lowering of interest rates is not an
ticipated until such an adjustment is
in sight or has been accomplished.
Still, the financial strain abroad Is less
acute, and with reasonable period for
the situation will work
out its own cure. Trade is beginning
to slow down in Great Britain, as it al
ready has done in Germany