Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1914-01-07
BUSINESS YEAR
REVIEWED BY
BRADSTREET

NEW NORh- Jan. Z.-Nlnetcen
hundred and thirteen was 4 year Of
disquiet and disappointment alike in
foreign and domestic finance. trade
and industry. The disquiet WAS
worldwide, though until the latter
part OF this year nor so much III
evidence at home as abroad. Dis
appointment was keen with those
who. with knowledge OF the many
politico-ccCnomic domestic problems
pressing for solution, were hopeful
thar the exceptionally strong posi-
ton of this country's producing and
consuming interests would render IS
partially independent OF, if not ell
tirely immune to, the play Of he
large financial forces dominating the
world in the year just closed and
making for depression in finance and
trade. Review of last years events
would prove incomplete if sigir
were los OF the many resemblances
it bore to 1852 and 1908. just ten
year ago, when the so-cailed rich
mans or silent panic" occurred
Then congo stiOn in the securities
markets was in evidence, the phrase
financial Indigestion" was coined.
,hc results OF much injudicious CAP
ital;zation OF industries were mani
fest-iirst in collapsing stock market
prices and later in depressed trade
and industrial orditions-numer-
Gus strikes and bank suspensions
occurred, and all the usual alter
math was presented OF an extended
financial or credit situation Icing
readjusted
Ii has been frequently and with
justice said that the Balkan war AMI
its attendant evils did not cause
but rather precipitatcd and revealed
the worldwide financial strain OF
1913. 1t must with equal justice
be held that most observers failed
to adequately measure and forecast
the effects, direct and indirect, OF
the war which. starting in Octo-
Der. 1912, drenehed the Balkans and
European Turkey in blood. con
verted eastern Europe into an armed
camp, caused boarding OF gofr in
Austria. France and Germany. put
a practical period to the European /
financial and commercial boom, and .
in steadily widening circles reached .
into and affected the finances and .
trode OF countries thousands OF miles
away from and apparently uncon-
nected with the hostilities. No coun-
try proved immune and all felt the
strain of an already greatly over
extended credit situation, inability
TO borrow new loans and difficulty /
in getting old issues refunded. Bra
I'll and India, Germany and Austria |
France and England, Canada AMI .
Mexico, as well as the United .
States. were affected, this country. .
perhaps least OF all. because OF our .
wonderful export trade balance. .
cushioning the impact upon Us OF /
the outer worlds forces. Once again .
our membership in the family OF ma
ticns brought home to Us the real /
interdcpendcncc OF the countries. and /
when we confidently expected relief
Tor our own financial needs from .
our enormous export balance, in /
stead OF gold supplies paid Us II
settlement OF these balances, we re /
ceived back or own securities, |.
which as in other years OF general
strain sold most readily in the
worlds markets Indeed, as tie
result OF three-corncrcd exchange
operations, We found ourselves pay
ing other nations balances in mar
kcts where or own trade interests
, luired payments to instead OF di--
Oursemcnts by Is, OF the worlds
chief Circulating medium.
The worlds financial difficulties
bulked large in our list OF problems,
but there was no lack OF items CT
domestic concern. In a session of
Congress remarkable for is length
two much agitated and frequently
iought-ovcr questions were forced
10 q conclusion. The tariff was re-
viscd, but it. enactment, by the
way, was coincident with a shrink
age instead Of the predicted enlarge
mcnt in our import trade, and CO
incidcntly an income tax law was
put il operation Tor the first time
since the civil war period. The
currcucy measure, designed to take
the place Of am outworn and often
discrcdiicd system, also became Il
law. The Union Haci.ic-Somhcrn
Pacific railway merger WAS dis
solved. and terms were agreed upon
between the telegraph and tclo-
phone Interests and the country
law officers without the aid OF a
suit. thus pointing the way to an