Evening star., 1914-07-12
BUSINESS OUTLOOK
MORE ENCOURAGING
Indications Point to Passing of
Depression With Last
Fiscal Year.
INVESTMENT DEMANDS ARE
BEGINNING TO BROADEN
Movement of the Nations Vast
Crops Is Expected to Start Flood
Of Buying Orders.

OIVpS 4S GApcCIcu w oGoAt GAoou
Of Buying Orders.
NEW YORK, July 11.-Unless all pres
ent indications are untrustworthy. the
period of business depression which has
SO seriously harassed all classes and con-
ditions Of people in the United States
passed out of existence with the first half
Of the present calendar year. Bankers
and business men are almost unanimous
in their declaration that not only the
psychological but also the practical and
substantial aspects Of the situation have
undergone complete Transformation, and
thus their eyes are turned forward. with
a more hopeful view, for future develop
mentS.
The evident policy Of our administrators
at Washington to at last shape their con-
duct somewhat in accordance with the
wishes Of their constituents. and the at
titude Of the President in showing will
ingness to at least receive the opinions
of the men who are the real captains of
industry. have contributed in large meas
ure to the clarifying of the business at
mosphere.
contending that business conditions in
the United States have been more IA
vorable than formerly. it might be inter-
esting to note that within the past six
months the net earnings of American
railroads have decreased 10 per cent, bank
clearings have been reduced by per cent
and idle cars have been greater in num-
Der than in any year since 1907; that
since January !. 1913. twelve railroads
have ceased paying dividends. while two
ofh
that in the past year and a half forty
large corporations, not including the rail-
roads, have either reduced or entirely sus-
pended their dividends: that the increase
Of imports over exports has been most
unfavorable commentary on our foreign
trade conditions: that not only do these
conditions represent a tremendous loss
to the stockholders of the corporations
thus affected. but the loss in wages due to
the enforced idleness Of thousands of the
workingmen has wrought much hardship
among them and their dependent fami-
lies.
Business at Lowest Ebb for Years.
An Official Of one of the largest banking
institutions in the United States, who
has charge Of loaning over $75,000,00O per
annum to commercial borrowers. is
quoted as saying: "It is absurd for
President Wilson and Secretary Redfield
to argue that business is only sentiment
ally depressed. My information. from
hundreds of manufacturers. shows busi-
ness is at the lowest ebb for years I
know Of only two cases where volume is
near normal-in fine tools, where there is
a big foreign demand. and in toys. The
former is off per cent, the latter be-
tween Is and 20 per cent. In practically
all other lines depression is in full swing
"one Of our correspondents. on a long
trip through the south and west, writes
from San Francisco confirming these
views. He says conditions in New Or
leans. Los Angeles and San Francisco
are fiat. He adds that the administra-
tion is being roundly scored for low tar
i'll. which is believed the biggest factor
in poor business. Passenger travel all
over the country Is light particularly on
long haul business and tourist fares
Steamship bookings are only so per cent
of normal to Europe and 25 per cent to
this side. Older boats and freighters are
hardly paying their way. We shall work
out all right, but there's no use in fool
ing ourselves into believing the country
Is now prosperous"
While there are few to believe that we
are to have any sudden squirt of busi-
ness activity, it is equally true that, with
the enthusiasm that is clearly developing
in the agricultural sections Of the coun-
try. it is only logical to look for a vast
improvement In business sentiment as
well as in the actual volume of trade.
1t Is confidently believed that the pc
Rod of waiting has at last reached its
limit. and that very shortly there will be
a veritable flood Of orders for new equip
ment placed with she various steel COM
panies and railroad supply manufactur-
ers. This belief is based partly on the
experience reported during the past fort
night by the larger steel compasies when
there occurred an encouraging increase in
the volume Of orders for miscellaneous
equipment from the railroads.
Rail Business Shows Increase.
During the past fortnight there has
been a marked increase in the passenger