The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-08-25

kinds Is being resumed, and the worlds
commerce IL adjusting itself to the ne
cessities of war;" writes Henry Clews.
the New York banker, in his current
review Of the conditions that prevail in
the world of trade and finance and az
they are affected by the war; and he
continues:
by far the greatest and most impor-
tant basis of improvement has been the
partial restoration Of international
trade Traffic il now practically safe
across the Atlantic and through the
Mediterranean. two channels through
which much the largest share OF the
worlds commerce travels. The route TO
South America is also practically open.
German boats, representing an enorm-
Gus tonnage, are OF course out OF en-
ployment, and the sudden withdrawal
Of SO large a capacity must continue to
be a serious Inconvenience. The loss OF
tonnage will fall most severely upon the
passenger service. but this class OF
traffic promises to be exceedingly light
for at least a year or SO to come.
Fortunately freight transportation is
being rapidly resumed; chartering has
OS$OAAAC AAANAA A4AOAO 0NIAsCs 0AA0 NN-S
soon our wheat and cotton will be going
abroad in liberal quantities. Germany
will not be able to buy our grain or cot
ton with any freedom; but England
must have both in large amounts and
will be able to secure them as long as
she can control the sea. This helps
matters very materially on this side OF
the Atlantic, and will lessen or avert
the loss that threatened our southern
and western farmers by an embargo
upon transatlantic routes. The proposal
of our government to buy large for
eign fleet of merchant vessels is now
unnecessary. 1t is unwise for both po-
litical and commercial reasons. Our
government would be entering upon an
exceedingly costly and losing operation
for the purpose Of meeting temporary
emergency, which is rapidly passing
away.
Another important sign Of improve
mcnt is the diminished tension in the
financial world. International banking
arrangements are being gradually re-
stunned. and foreign exchange operations
have now been reopened on the CONT
nent on a limited scale. The New York
Stock Exchange remains closed and
may not be reopened until it is known
what the London exchange il likely to
do. To open the New York exchange
under existing conditions would be
sheer folly, since it would make New
York the dumping ground of all the
needy sellers in Europe and precipitate
fresh decentralization in this market.
Meanwhile business of very consider
able Importance has been accomplished
under the present methods Of limited
transactions for cash under approval of
the Stock Exchange committee of five.
This plan has worked very satisfactor-
lily and has done much toward furnish
ing relief, prices being maintained at
the closing of July 30. and in some cases
showing a slight improvement. Our
bankers are doing their utmost to settle
our domestic money situation, which
cas been greatly relieved by emergency
circulation, by the release Of govern
ment funds and by the issue of clearing
house certificates. Thus far all infla-
tionary proposals have been sternly
checked: and it is to be hoped that this
policy will be firmly adhered to. In
flation might help now, but would
eventually bring on vastly worse condi-
tons than yet seen.
"a fair idea OF the effects Of the war
on the United States can now be had.
AS the demoralizatio Of the first shock
passes away, 1t seems that German
commerce and industry will suffer more
than any other. The United States will
| no ~ or.
man imports. These, however, will in
due season be compensated for by sup
plies obtained from other countries and
by the creation Of new or stimulus OF
old industries in this country. This
may or may not revive the tariff as ar
issue. Our steel industry will ultimate
ly- also benefit, for many Of the orders
which at one time went to Germany
} will now be filled in America. Our cot.
ton mills may reasonably expect larger
orders for export. which will somewha
offset the loss of German purchases O
raw cotton. Germany transacted {
very large trade with South America
much Of which she will lose to thu
United States. The American sugar in
dustry will also profit largely by tn
temporary loss of the German supply
The worst Of the shock of war in thi
l i country has already been felt. We ma.
see its later effects in high prices o
, food, while the dislocatiOn Of industr,
; will temporarily increase the numbe
of unemployed. Ultimately, however
t our industries will receive a great i'm
| petus, and II any country in the worl
: can possibly benefit from the colossa
: disaster now hanging over Europe.
will he the United States, which is hap
j. !, PLY free of all foreign ENHANCEMENT
y and should absolutely keep so.