The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-12-15
BUSINESS RECOVERY IN SIGHT.

BUSINESS RECOVERY IN SIGHT.
Henry Clews the New York banker.
characterizes the increased scope OF
the trading on the New York stock
exchange as the almost complete
mobilization Of American finances on
a war basis. "Our financial markets.
he writes in his current weekly 1lnaA-
cial review, 'have at last successfully
emerged from perhaps the most crit
ical period in history; and, thanks 10
the sound and firm policy OF the STOCK
exchange, the country has escaped any
serious financial disaster. There Is no
longer any danger of panic. ana the
future of prices must now be govern
ed by influences open to judgment OF
the public. Let US consider what
those influences are. The war nat
urally remains the paramount con-
sideration, but it's effects have been
amply IL not fully discounted. lndi-
rectly its course must have decided
influence upon values: yet. until peace
prospects become much more Definite
discrimination will have ITO be exer-
cised in the attitude toward securi-
ties. There is q vast mass OF Amer1-
can investments which are practically
beyond war influences. These nave
weathered the storm safely, and must
be among the first to recover from
late depression. Our neutrality and
our distance from the conflict are in
estimable advantages that should not
be forgotten.
"Takfne the war at its fair value,
home influences must be regarded as
MT OF IN
trinsic values. The whole country
and especially the west, is now 1eenns
the advantage of good harvest. Tnls
is particularly true Of the great wheat
belt. where the farmers are reaptng
profitable prices for an enormous
Weld. Undoubtedly the war has
brought prosperity to the west not
onlv in good prices for food products,
but also through liberal contracts TOT
army supplies in which the east mas
a very considerable share. The south
has been hurt by the war more than
any other section owing to the low
price of cotton and the temporary
stoppaee of exports These condi-
tons. however, are being gradually
rectified; the south is less dependent
upon a single crop than ever pe1ore'
and the problem Of financing the huge
$4,000, OO0-bale crop Is being surely
solved, and there is every indication
that before long consumption will be-
gin to recover the losses of the last
four months. There will be a big
surplus left over for next season,
which will necessitate a reduction OF
acreage in the coming crop; never
theless from the agricultural point OF
view the country as whole is sound
and prosperous.
LAS to the industrial situation, that
is still somewhat confused. Much OF
the current depression is due to lack
of initiative on part of our captains
of industry. Their confidence has been
severely shaken by the food of antag-
onistic legislation which swept the
country far and wide for several years.
Capital has most assuredly been driv-
en- into hiding; enterprise is checked.
and the number of unemployed vastly
increased. Fortunately, there are
signs of a turn in the tide I'm this re-
spect. President Wilson has wisely
called a halt, having realized the
harm of such oppression. Henceforth
the policy of the government is to be
helpful to business, and not detrimen-
tai With one accord the entire coun-
try will look forward eagerly to the
fulfilment of this promise.
"A very important factor in this
problem of the government in bust
ness is the forthcoming decision of
the interstate commerce commission.
1t is an old story-the impairment of
railroad credit; the stoppage of i'm
provements, and the cramping of pub
lie facilities-and argument is now
useless. 1t is the decision that is
wanted. The president has made it
known that he favors more consfd-
crate policy to the transportation
lines; and there is reason to hope
that, with public opinion and fair play
so heavily on his side, some conces-
sions will be allowed the railroads.
Attention should now be turned to
the great steel industry. which has
trade barometers. Production for
months has been running at less than
half our national capacity. This
r. cans that all railroads and all other
large consumers are starving them
selves. Railroads and all kinds Of
machinery are being used pretty
much as usual. They are wearing out.
In spite of depression. the country is
growing fast. New construction must
be resumed. Prices are very low. and
when the tide changes shrewd buy
ers will rush in with orders and I'M
avoidable activity must follow. More
| Ovor the wOrld'S markets will he
opened to us as never before; for
European plants will be fully occu-
pied for months if not years to come
repairing the unparalleled devasta-
| ton and losses in their own markets.