Evening times-Republican., 1914-01-03
No Reason Apparent For Slowing Up
Of Trade and Industry During 1914
Settlement Of Tariff and Currency
Questions to Lend Stability to eusi-
ness-FaiIures Show Slight inersase.

many politico- o-economic domestic prob
lens pressing for solution, were hope
full that the exceptionally strong posi-
ton of this country's producing and
consuming interests would render US
partially independent Of, If not entirely
immune to. the play Of the large finan-
cial forces dominating the world in the
year just closed and making for de-
preston in finance and trade. Review
of last years events would prove in
complete if sight were lost of the many
resemblances 1t bore to 1902 and 1903.
just ten years ago, when the so-cadled
rich mans" or silent panic" occurred.
Then congestion in the securities mar
kets was in evidence. the phrase ID
nancial indigestion" was coined, the
results of. much intudicious capitah-
zation of industries were manifest
first in collapsing stock market prices
and later in depressed trade and indus
trial conditions-numerou strikes and
bank suspensions occurred, and all the
usual aftermath was presented OF an
extended financial or credit situation
being readjusted.
Effect of Balkan War.
1t has been frequently and with JUS
tice said that the Balkan war and Its
attendant evils did not cause but rath-
er precipitated and revealed the world
wide financial strain Of 1913. 1t must
with equal justice be held that most OBJ
servers failed to adequately measure and
forecast the effects, direct and indirect.
Of the war which, starting In october,
1912, drenched the Balkans and Euro
peau Turkey in blood, converted east
ern Europe into an armed camp.
caused boarding of gold in Austria,
France and Germany, put a practical
period to the European financial and
commercial boom, and in steadily wild
ening circles reached ipto and affected
the finances and trade Of countries
of miles away from and ap-
parently unconected with the hostili-
ties. No country proved immune, ana
all felt the strain Of an already greatly
overextended credit situation, inability
to borrow new loans and difficulty IN
getting old issues refunded. Brazil and
India Germany and Austria, France
and England, Canada and Mexico, as
well as the United States. were anect-
ed, this country, perhaps least OF ALL
because of our export trade balance.
cushioning the impact upon US OF the
outer worlds forces. Once again our
in the family OF nations
brought home to use the real independ-
ence Of the countries, and when we con-
fidently expected relief for our own
financial needs from our enormous e&-
port balance, instead Of gold supplies
paid us in settlement of these balances,
we received back our own secur1tles,
which as in other years Of general
strain sold most readily in the worlds
markets, Indeed, as the result OK three
cornered exchange operations. we
found ourselves paying others nations
balances in markets where our own
trade interests required payments to
instead of disbursements by us OF the
worlds chief circulating medium.
Items Of Domestic Concern.
The worlds financial difficulties
bu,ked large in our fist Of problems,
bu. there was no lack Of items Of
domestic concern. In a. session OF con-
gress remarkable for it's length, two
much agitated and frequently fought
over questions were forcec to con-
clusion. The tariff was revised. but its
enactment, by the way. was coinci-
dent with shrinkage instead OF the
predicted enlargement in our import
trs de, and coincidently an income tax
law was put in operation for the first
tine since the civil war period. The
currency measure, designed to take the
p!ec of an outworn and often dis
credited system, also became law.
The Union Pacific-Southern Pacific
railway merger was dissolved. and
terms were agreed upon between the
telegraph and telephone interests and
the country's law officers without the
aid Of suit. thus pointing the way
to an ending Of the ten-year period Of
lnarrying so-called big business thru
the courts.
:.snsy Scarce Al Year.
Despite, however, the numerous
drawbacks arising from money scare
ity and credit strain, the discussion of
new economic measures in congress,
the continued agitation OF new and old
laws affecting the rights of combina-
ton, the lowering Of the tariff, the un-
equal, in some cases deficient, yields of
staple crops. the very high levels of
prices Of commodities, numerous fall
ures. heavy liabilities and hand-t to-
mouth buying Of q piece with that
noted each year since 1907. many new
records of trade volume and Industrial
output were set up. The backlog of
untitled orders on hand, which were at
their maximum at the opening of the
year, tended to decline as the spring
advanced. Money scarcity was in evil
dence from early in the year onward to
its close, seeking the form Of close
scrutiny Of credits rather than that OF
acute high rates. which indeed were
rather conspciuously absent Much
needed support to trade and finance
was given at a critical time, early in
June. by the secretary Of the terasury's
announcement as to the possible use of
emergency currency and the placing OF
government money in the banks in the
surplus crop producing areas. The
then good crop outlook was of cours.
helpful. but with the realization Of the
drouth's damage in the west and
southwest in August and September.