The Topeka state journal., 1914-01-27
MONEY Is EASY AGAIN.

MONEY IS EASY AGAIN.
"The remarkable buoyancy which has
come over the security markets since
the opening of the year is mainly at
trtbutable to two causes-a radical
change in the worlds money markets
and a more conservative attitude at
Washington" writes Henry Clews, the
New York banker. in his current week
ly financial review.
Which of these two influences have
had the more weight. it would be diff
ficult to prove. The ease in money is
perhaps the most significant and far
reaching. In this market and in Lon
don, Paris and at all European finan-
c1al centers time rates have shown a
sharp decline. The most significant re-
suit Of this worldwide improvement in
the monetary situation was the sue
cessful bond issue Of New York state,
Isl ,00O, 900 Of ~ per cents having been
placed at 106.077 and subscribed for six
times over. This encouraging event
had marked effect upon the entire
market 1t was a transaction that will
do much towards imparting a further
extension Of confidence. It demon-
strated that capital can now be had in
abundance for suitable purposes at rea-
sonable rates, and will greatly facilitate
the reflnancing of the mass of short
term notes which mature this year.
Such sudden ease in the money mar
ket is of course owing very largely to
the slowing down of business. At home
the crop demands are about over
Abroad the strain incidental to the
Balkan war has disappeared, and busi-
ness there is also slackening and caus-.
ing lessened demand for money.
Funds always accumulate following a
financial crisis, or after the end Of
We may now look for continued ease
for some time to come. and from this
condition two results may be antici-
pated. First. home securities will look
cheap in comparison with the rates for
money and advancing prices must be
expected until some sort of equilibrium
is attained Second, the greater abun-
dance of funds. as well as the newly
formed basis of confidence will lead to
much new financing and probably a
large increase in new flotations both
here and in Europe; new issues will
stimulate Industrial and commercial ac-
tivity, and cause firmer money rates
later on.
THE next element of Importance has
been President Wilson's noteworthy
trust message. AS he intended, it has
had decidedly soothing effect While
showing no relaxation in the purpose to
enforce the Sherman law, he has as
sured big business that it would be
done with the least disturbance
possible. and that the whole policy of
the administration would be to build up
and not destroy. OF course such a
change in spirit at Washington had an
extremely reassuring effect; and no one
doubts that Mr.. Wilson is well able to
curb the radical and disturbing spirits
in congress. If he succeeds we may
expect from now on a steady growth
of confidence, and corresponding inn
provement in general business. Yet,
it must be remembered that the pro-
cess OF economic readjustment. SO con-
spicuous in 1913, is not yet entirely
complete. The full effects Of the new
tariff have not yet been demonstrated,
The new currency law will not be in
operation for months to come The en-
actment Of new trust regulations and
adjustment thereto will produce some
friction and uncertainty. Business ac-
tivity has not yet been fully restored.
The steel trade is showing a gratifying
improvement. but Is far from being
normal in volume. The real estate sit
uation is still unsatisfactory, and the
effects of OVERRIDING may be seen in al
parts Of the country. There is no doub,
but that the full crops of last yeal
saved us from a serious financial crisis
What will the next harvest be? II
the sudden rebound OF sentin.eL+. char.
acteristic Of the American people. II
is just as well to keep such facts in
mind in order to avoid unwise excesses
which might easily provoke fresh re.
action. or delay substantial recovery
So far, however. as the relations be.
tween the administration and big bus.
mess are concerned. there has been 8
most satisfactory change, which re.
fleets much credit upon the good sense
Of President Wilson. as well as upor
his political sagacity.'
l Full Of It.
WELL" said the Judge svo,,'ra ,