The Topeka state journal., 1914-02-10
BUsrNEss MORE HOPEFUL

BUSINESS MORE HOPEFUL
'The dominating influence In the Sc
curity markets today y the worldwide
case Of money" writes Henry Clewss
the New York banker In his current
weekly financial review. For Ions
period stocks have been unduiy depress-
ed by abnorInally high rates Of interest
The sudden and extreme drop in inter-
est rates has since the year began
caused . complete change In conditions
affecting investments. Since the pros
poets are for continued ease in money
the world over for months to- come,
1t follows that many good securities
which have been selling on a SO basis
and higher must show a gradual in
creased appreciation. In few short
weeks interest rates dropped consfd-
erably. AS yet there has besn no cor
responding advance in the value OF
securities. The two main reasons Tor
cheap money are the slowing down OF
business in the principal commercial
nations-the United States. Great Bril-
tain and Germany-and the disappear
ance Of the strain induced by the Bal
kan war. followed by release OF funds
boarded during the struggle. How long
the present ease Of money will last. 1t
is difficult to determine.
THE present slackness of trade can
not continue indefinitely. Thus far'
there has been no over-production OF
merchandise in any of the great mar
kets. and industrial conditions are gem
orally sound. Nothing is needed for
trade revival but a recovery in conn-
dence which Of itself will be stimu-
1us to new enterprise. Cheap money
must prove a very important stimulus
In this direction. Many donations have
been long delayed owing to excessive
interest rates, and as these are launch
ed the funds thus acquired Will De re-
distributed in The channels of industry
and cause a natural business recovery,
both at home and abroad. The princi-
pal danger has been from flood OF
such fiotations. The new capital Issues
in London in January were nearly
ego O0o, 900. the largest on record for
that month. and E13.000,00 ahead OF
a year ago. Indications point to fur
ther heavy issues. particularly in gov
ernment loans, the latest being El2,-
OO0, 900 Belgian loan. Fortunately in this
country We are proceeding on a much
more prudent scale. The new output
of securities in the United States in
January was reported at about $780,
100000, decrease Of nearly $20.OO0.OOO
compared with last year. Moreover. the
net amount of issues was much less
than the. above figures for the reason
thai a considerable proportion repre-
sented refundtng operations or payment
of maturing obligations. This means a
steady reduction of what was in re-
atty floating debt. Nevertheless, both
monetary and business situations are
automatically correcting themselves.
Business sentiment throughout the
United States is much more hopeful
and in due season We may expect
larger and more satisfactory volume Of
trade, although this change cannot take
place overnight. The steadying efforts
of President Wilson at Washington
have done much toward rebuilding con-
fidence and paving the way for business
revival. 1t is well known that there h
an aggressive radical element at
Washington, anxious to make many
extreme changes in our economic
status, some Of them very unsettling.
1t is also recognized that the ap-
preaching congressional elections next
fall offer an important opportunity for
political "-eworks which will not be
allowed to pass unutilized. Happily
the sober second thought of the people
is being aroused, and there is a dispo-
sition to apply the brakes upon too
rapid political movements: President
Wilson leading the way in this re-