The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-06-30
BUsTNEss Needs a CHANCE.


Henry Clews. the New York banker.
writes in his weekly financial review:
1T is to be hoped that our well-in-
tentioned legislators will take a lesson
from this failure, and realize that there
are limits to what business can bear
from sudden radical changes. Not
few of the new laws and regulations
are desirable and even necessary. but
they have come probably with too
much of a rush. Largely owing to that
fact their effect has been to impair
initiative and weaken confidence; thus
incidents, such as the
Clafin disaster. might have been
avertcd."
That there is a general retrench-
ment in business is beyond a doubt"
continues Mr. Clews in his analysis of
the situation in the world of trade
and finance. Last week bank clear
ings were nearly 10 per cent less than
q year ago; the decline being greatest
in the New England and eastern states;
and for the five months of the calen-
dar year the decline has been over
per cent. Gross railroad earnings
showed a loss of II per cent for the
month of May, and per cent for the
first five months of the current year.
The number of idle cars is still alb
normally large. The present net sur
plus of cars is 1884, 900, compared with
$4,000 a year ago. Building operations
are on a much smaller scale than
usual; and the stagnation of the steel
trade Is already unpleasantly familiar.
July disbursements for the first time
in many years show a decrease, COM
pared with the previous year. This
was due to the passing or reduction OF
a number of dividends, also to the
smaller increase in new enterprises;
the latter running at about one-half
the volume at this time last year.
These facts are stated not to empha-
size depressing factors but simply to
show that they do exist.
among the important events of the
week were several supreme court de-
cisions. the Intermountain decision be-
ing of chief significance. That deci-
sion while it clarified the situation as
to the relations between the govern
ment and the railroads, and while the
latter will. now be. free of state inter-
ference on interstate traffic, still the
acknowledged constitutionality of the
government fixing the rate was any
thing but welcome to railroad mana
gers. This is power Of portentous
proportions. If wisely used and in a
spirit of fairness to all interests, own
ers and shippers alike, 1t may be pro-
ductive of much good and tend to con-
serve the stability of railroad invest
ments. If, on the other hand. the
power is used with prejudice to either
side, the consequences may be any
thing but desirable. Very shortly the
rate decision will be handed down, and
the most rsliabl opinion is that mod
crate concessions may be allowed to
the eastern lines 1t would be unsafe.
however. to be over-confident in anti
cipating too favorable a decision. Mex
lean affairs have again been an OBJ
ject Of some anxiety, the situation be-
ing made worse for the Federals by
the taking of Zacatecas by Villa. That
Huerta must go by one means or an
other, is now a certainty: and it
would seem as if a settlement might
be more promptly reached by bringing
Huerta and Carranza into consulta-
ton for securing a provisional govern
ment. OF course bitches must be ex-
pected in such difficult negotiations,
and it will be long time before Mexi-
CO settles down into normal condi-
lions once more. But the probability
of armed Intervention by the United
States, though not entirely removed, is
apparently more remote than at any
time since these troubles began.
"Of course the market has been I'M
settled by the difficulties in the dry
goods trade. Should these prove less
serious than at present anticipated,
they will quickly cease to have any
stock market significance. Should,
however, the credit situation be more
seriously disturbed than at present
seems likely. the effect would neces-
sarily be adverse to stocks for the
time being, particularly in delaying the
much desired return of confidence.
Nothing would do more in restoring
confidence than an early adjournment
of congress and a postponement of
further business legislation. Our in
dustrial. commercial and financial
systems have not yet had time to adj
just themselves to the innumerable
new regulations some of which are
that business men are sincerely anx-
ious to obey the law and meet all reas-
enable demands. Many of the abuses
which AROUSED public opinion and are
responsible for the present legislative
debacle are. matters of history and
could not now be repeated. Our leg
islators should recognize the changed
and improved conditions in business
4 u 49, =
accordingly. Consciously or uncon-
sciously they are seriously aggravating
unfavorable- economic conditions. and
making adjustments thereto more diff
ficult. The present trade reaction is
worldwide, and the United states has
suffered more than any other country
| in the world a MI in in a c0rreanOnding-