The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-10-13

BUSINESS REVIEWED.
Each week marks further improve
ment In the financial situation" de-
clares Henry Clews In his weekly letter
ON financial and trade conditions Affect
ing the United States. 1.-The position
of foreign exchange II daily growing
more favorable and foreign transact
tons, though seriously impeded. are be-
ing conducted with increasing facility.
The formation Of the S100. GEO gold
pool has afforded material relief. and IL
Offering Q conspicuous example of what
can be accomplished by intelligent. un-
selfish cooperation. This war has
brought many surprises: also some
highly gratifying incidents. Among
these must be included the work ac-
complished by New York bankers to-
ward meeting the shock Of war. thus
preventing disaster and successfully
adjusting our commercial affairs to the
new situation. When the facts become
fully known a. to the ability. courage
and unselfishness with which the New
York bankers faced the most serious
financial crisis In our history there will
be less prejudice throughout the coun-
try, and particularly in political cicles.
against New York as financial center.
There are serious problems brought on
by the war yet to be solved. but the
worst part Of the crisis has been safely
passed. New York has certainly saved
the nation from disastrous panic.
THE money market 10 also working
into a much easier position. Good bor-
rowers have less difficulty In finding
accommodation and rates are somewhat
easier. There is also a better demand
for commercial paper which demon
strates improving conditions in the
credit market. Much Of the present de-
preston in business il due to contrac-
ton Of credit arising from the war.
Needless to say any expansion Of credit
upon q sound basis will materially help
the business situation. The assistance
of the government and the operation of
the Aldrich- vreeland emergency bill,
which added nearly $3.50. 000. 900 to our
circulation, have been important factors
in monetary relief. The financial dis
trict il now looking forward eagerly to
the opening OF the federal reserve
banks. Reliable advices from Washing
ton say that the twelve banks will be
ready to open on November 1 If not
earlier. This IL sooner than anticipated.
the first Of December being previously
named. In any event the Inauguration
Of the new system IL not far distant,
and the hope 10 not unreasonable that
the stock exchange will be opened
about the same time as the inaugura-
ton Of the new banking system. which
by lowering the reserve limit will per-
init an expansion of about another
$300, 100000 in bank currency. OF course
the danger Of a flood Of foreign selling
of American securities is still the chief
hindrance to opening the New York ex-
change. Earnest efforts are being made
to open at London: the latest proposal
in this direction being for the British
government to guarantee Is per cent of
outstanding stock exchange loans when
the moratorium expires. II this plan II
adopted the British banks will undoubt-
eddy be willing to extend their stock ex-
change loans. It ID the loan situation
and not the speculative position which
Is the main cause Of anxiety. *.
'The war continues the dominating
factor in business affairs. Present in
dications are for q lengthy struggle.
Apparently it will resolve itself into q
question Of endurance and resources.
AS yet there are no signs Of exhaustion
on either side. in spite Of the terrific
exertions Of the past nine weeks. Great
Britain appears to be feeling the war
los - he IN 20
to her insular position and her ability
to keep the sea practically open to her
enormous commerce. English indus
try, moreover, has not been drawn
upon as severely for recruits to the
army AZ in the case OF the other bel
ligerents. Her Industries are thus COM
paratively free to resume more normal
activity. When the embargo upon
credit disappears and Great Britain 10
able to secure her supplies Of raw ma
terial. especially cotton, her interna-
tional trade will increase because Of
her ability to fill the gap caused by
Germany's elimination. Any Improve
ment in British trade conditions will
have a favorable effect here for the
reason that Great Britain IL much the
largest buyer in the world OF Ameri-
can products. Our cotton henceforth
will probably be sent to Lancashire in
increasing quantities, thus helping to
settle our foreign indebtedness and
lessening the occasion for gold exports.
We are also furnishing Great Britain
with large and increasing quantities of
military supplies in ono form or an
other. The stoppage Of German ex-
ports is also leading many foreign
buyers to come to this market, so that
while the war as q whole has been q