The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-10-20
WEEKLY FINANCIAL REVIEW.

or less temporary depresBion in finaI1-
cial circles, the inference being that
that event would tend to prolong the
war;" reports Henry Clews In CONF
menting upon recent developments at
fecting American business. 'sAll indi-
cations now point to prolonged
struggle. the effect OF which of course
Is anything but encouraging. Never
theless. the world II rapidly adjusting
itself to the new conditions. Great
Improvement has taken place in the
credit situation. although money is
still scarce to all classes Of borrowers. 4
and full rates of interest must be ex-
pected for some time to come. The
difficulty In the money situation is not
so much the scarcity of funds a. the
demoralized condition of credit and
the uncertainties regarding the col
lateral. These will doubtless be re-
moved as soon as conditions improve
sufficiently to permit reopening of the
stock exchange. Those in control are
wisely lessening tho restrictions upon
trading little by little. thus permitting
the market to adjust itself by quiet
and gradual operations. There has
been q tremendous amount of quiet
liquidation since the war began, and
prices have already shown material
concessions; 80 that the readjustment
Of values to the war level Is probably
more complete than realized. 1t II
welcome news to hear that the amount
OF loans by members of the London
stock exchange 10 only about 3410,-
100000 and that the banks will prob
ably carry these loans II the govern
ment will guarantee them against
losses. which is not unlikely.
''The banking situation has unques-
tionably improved. Foreign exchange
at the moment IL at standstill. Pro-
gress il being made in the organiza
ton of the federal reserve institutions
and when this is accomplished. II will
be possible to further restore our
banking system to normal by making
preparations for retirement of clear
ing house certificates and the emer-
gency currency. These are events Of
more or less distant future, but 1t il
necessary to take them into prospec-
tive calculations. The financing of the
cotton crop Is at the moment receiv-
ing the serious attention of the bank
ing community, and it 10 refreshing to
note that the proposals for govern
ment aid are being generally discour-
aged and are giving way to more
plausible and sounder propositions.
The worlds foreign trade is rap
idly recovering from the first shock
of war. Our own imports and exports
are showing gratifying gains over
August and September. In imports
the increase was $s.4se,0o0 and in ex-
ports 1851, 900 over last month, the
excess Of exports in September being
sic, 100000, against an excess of 49,
100000 in imports during August. The
large orders received by American
concerns for military supplies will
serve to materially swell shipments
abroad. In August and September
our cotton shipments fell off about
1000, 900 bales. This loss win be part
ly made good when the sterling ex-
change situation is rectified and ar
rangements are made for financing
the crop. The world is still suffering
more from financial dislocation than
from the war itself, and the rapid Inn
prOvement made in London finances
Is greatly aiding progress here. The
Lancashire cotton trade must also be-
gin to resume ere long. The world
outside of the war still want vast
quantities OF cotton goods. and the
present paralysis cannot continue in
definitely.
British exports in August fell to
f24.000.00O, against f44.0OO,00O a
year ago. while imports dropped in
the same period from f56.0OO,00O to
| f42,OoO,000. In September, however,
there was an increase Of nearly g.
100000 in imports and f2,5O0,OO0 in
| exports compared. with the preceding
month. German foreign trade has
however, suffered severely owing to
| the practical elimination Of her mer-
chant marine. Russia and Austria
have also lost much of their foreign
trade. Ultimately the war will great
ly stimulate American foreign COM
merce.
| Commercial conditions at home
are far from satisfactory. The shock
to credit resulting from the war has
enforced a very material contraction
in business operations. Consumption
of both Injuries and necessities, es-
pecially the former. il being severely
curtailed by the necessity for econ
omy in family expenses At the same
time production is also being cur
tailed because of the check to new
enterprises and the scarcity Of orders
arising from the contraction of cred
1t. Thus the circle of diminished en-
ployment and diminished consump-
ton is exercising its baneful influence.
Decrea sing bank clearings ard rail-
road earnings are further testimony
| which cannot be ignored of business
reaction The iron trade continues