The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-09-29
BUSINESS IMPROVING.

consequent dangers. the tendency Of
financial and commercial affairs in
clines toward Improvement" writes
Henry Clews. the New York banker. in
his current weekly financial review.
Each week. he continues. shows
some progress in the efforts for bust
ness resumption. Since it is facts that
count. some of the facts of improves
ment are herewith cited:
1.-THE successful placing OF the $780,
100000 New York city loan.
Formation of the $100.000.0o0 gold
pool, New York contributing $4,000
900 and Chicago $16,OOO,OOO.
Decided improvement in foreign
exchange situation.
"Surprising increase in strength Of
Bank of England.
Indications that reopening of Lon
don and New York stock exchanges
will be earlier than at one time ex-
pected.
1.-The English moratorium will end
November 4, and will be partially cur
tailed on October 4.
Prospect Of early resumption of
New York cotton exchange.
There is a very gratifying recovery
in our export trade.
1.-The disposition of the federal gov
eminent to aid in every legitimate
manner a resumption OF business is
more marked.
1.-The application Of the railroads for
spread approval.
"A decrease is reported in the num-
Der Of idle cars.
- T.. <11I 70 tpa
fact that the business situation is still
enduring extraordinary strain; and the
future continues to demand great pru-
dence and self-restraint. Any violent
outbreak Of speculation, either for the
rise or fall, would probably invite un-
favorable consequences. Even in the
United States liquidation is still incom-
plete, as shown by the declining ten
dency Of high grade bonds. cotton.
steel products and many other COM
modities. 1t must be universally recog-
nized that there has been a serious inn
pairment Of the worlds buying power.
not only in Europe, where the rage of
war is devastating property and life
beyond Imagination, but in the United
States where the consequent break
down of credit and the arrangement
of our foreign trade has placed severe
restrictions upon regular trade and
imposed an almost complete embargo
upon all forms OF new enterprise. At
the same time the present blockade of
financial and industrial activity cannot
last. The more promptly that hor-
rible struggle ends, the more prompt
will be the general recovery. But no
substantial peace plans are in sight.
Apparently nothing but exhaustion
will bring the contest to an end, and as
that means a collapse Of some Of the
most powerful and progressive coun-
tries which the world has ever seen,
such a catastrophe will exercise a de-
pressing influence for many months, II
not years to come. On the other hand,
it Is quite possible to exaggerate the
harmful effects of this war, especially
in the present depressed mental atmos-
phere of the entire world.
The loss OF life. the destruction of
property and the wasteful expenditures
of war are only too well understood.
Nevertheless. the costs Of armed peace
have been so terrifically high during the
past decade that one of the certain eff
fects OF the war will be to greatly re-
duce the annual bills for militarism
which have heen estimated at about
$1,6O0,00o.c0 coo year for the five great
nations now at war. If these expenses
| could be reduced one-half, it would
greatly facilitate the payment of the
war debt which pasterity will have to
meet, and also permit an earlier re-
sumption Of enterprise through the les
sened waste OF capital and savings.
Moreover many International disputes
which have kept nations at loggerheads
for years will unquestionably be set
tied in the forthcoming peace negotia-
| lions. and so remove some of the e,e-
ments of International friction which
create the war spirit. In all probabilit
Europe will enter a period of prolonged
peace after the present contest is
ended.
"At home the financial situation IL
gradually clearing. Many delicate prob
lens have been adjusted by the spirit
Of intelligent cooperation which has
been active in all lines of business
Bankers wisely curtailed lending oper-
atoms, not with view of restricting
legitimate movements, but rather fol
the purpose of restraining unwise COM
mitments under present conditions
Better financial conditions abroad, par.
ticularly in London. lessen the posi-.
bilfties Of large gold exports. This
country, as has been repeatedly shown
with its great stock of gold. could cas-
lily spare fair amount II necessary
but the course of our foreign trade il
such that Europe will in all probabilit,
soon be a debtor to the United States
Our imports do not recover as rapid!
as exports because the supply of thu
former is diminished by the war and oul
own purchasing power has been some
what impaired. On the other hand
Il our exports are steadily rising, the tota