The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-09-08
EFFECTS or THE WAR HERE.

course of formation that will ultimate
" lead to at Least a partial bEeaking OF
the financial deadlock. There 10 at
present. Mr.. .Clews continues, mo
prospect in sight of an early opening
of either the London or the New York
exchanges. Nevertheless. we are
steadily approaching the time when
partial resumption of financial opera
lions is to be anticipated. New York
is fortunately in q good position for re-
opening when London IL ready to do
likewise. Values are low and the sit
uation here is entirely free of infla-
ton. The greatest obstacle here to
business resumption is the financial
position. Our foreign exchange market
though improving is still practically
blockaded. A little more business is
being transacted in sterling, but for
eign credit is still demoralized and in
ternational transactions are largely
upon a cash basis. Fortunately both
imports and exports are returning to
more normal conditions. Trade with
Germany OF course is practically clos
ed, but an increasing amount of traf-
flee is being maintained with other
countries. The exports from New
York last week were valued at $780,
600, 000, compared with $500, 900 the
week before and $12,0o0,000 a year
ago. Our imports at New York
amounted to- $4,000, 0eo last week.
compared with $17.30O,O00 the pre-
vious week and $1S,2OO.OOO the same
week yea- ago. These figures in
clude New York only, which is a port
where the imports are relatively farg-
err than exports. Conditions are be-
coming more favorable to exports
than to IMPORTS for the dizziness Of
trade here and the war abroad will
encourage the selling Of our food
products and discourage the buying of
foreign luxuries. Our exports Of man.
ufactures are already recovering. This
means that the net result of our for
eign trade will soon be a more normal
excess Of exports; a factor which will
do much toward restraining any ex-
cessfve shipment of gold to Europe.
The country's gold supplies are ample
and need cause NO concern whatever.
In the tire +sury there is probably over
1900, 100000. and we could readily
spare a reasonable amount to Europe
without any great Inconvenience The
Bank Of England is working on a re-
serve Of $2OO.OOO,0O0 and meeting far
greater emergencies than exist on this
side. The unfortunate feature of the
situation is that the foreign demand
for gold has fallen almost entirely
upon the national banks. Fortunately
through the operation of the Aldrich-
Vreeland act and the energetic assist
ance OF the government, the emer-
gency has been well met Some of the
propositions advanced have an inf1a-
tionary tendency; but as time limits
have been placed upon their opera
| ton. it Is not likely any untoward re-
suits will follow. e<-r
President Wilson is pushing his
shipping bill with his usual vigor. 1t
now looks as if the plan for the gov
eminent purchase of ships to the ex-
tent of $4,000. eco will be adopted by
| congress. With President Wilson's
| desire establish an American ma
| rine. all good Americans will agree
But government purchase of ships
! meets with strong opposition in some
quarters for the reason that there is
plenty Of available tonnage seeking
employment, although much of that
| offered for sale is not of a suitable
I type. Moreover, private capital is
likely to hesitate to enter into compe-
tition with the government; hence it
may prove no real aid t the estab-
lishment of a legitimate American
! merchant marine, as the cost Of run
ming is AFT to be more than under
| private enterprise. In the end the
prospects are that he trar saction will
prove to be a losing one for the gov
eminent, and we shall be fortunate if
we escape foreign complications. On
the other hand President Wilson
ought to be commended in his desire
to suspend for a period the restric-
tions which prevent private owner
ship Of American ships. The ex-
cessive cost of building and operating
American ships is the main reason for
American ship-owners operating I'M
der foreign flags. Shipping is bust
ness subject to keen competition, and
those who enter it cannot succeed I'M
less they so in upon the same basis as
those who have already succeeded in
advance. They must buy their ships
their supplies and their labor under
the most advantageous circumstance :,
Our laws for many years have pre-
vented this policy. In some respects
these laws have been modified; but
the remaining restrictions are still toe
severe to permit CT profit bile opera
ton, and the Anne. lean shipowner is
obliged to hide his property under
other flags and depend upon foreign
ers for protection to American prop
erty. President Wilson will do wei
to suspend these restrictions as far a:
within his lower. Ultimately they
should be removed.
LAS regards the war. our government
has properly taken the stand of neu-
ltralitY and must stick to il implicity