The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-04-22
THE BUSINESS SITUATION.


ing for better things in the business
worid.' writes Henry Clsws. the New
York banker. IN his current weekly
OF affairs in Mexico has been . source
Of more or less financial distrust. In
any event. II Intervention and war
come with Mexico the results cannot
be serious to q country Of the strength
and resources Of the United States.
The greatest fear Is that the contest
will be long drawn and costly in life
and money: but the situation IL much
less threatening than that which OK
listed during the Spanish war. which
simply caused q temporary reaction in
the security markets and was followed
by a very substantial recovery.
Legislation has been and still IL be-
Ing pushed 1t breakneck speed; and
now that the agony attending the pas
sage into law OF the tariff and cur
rency bills has been borne patiently is
1t not about time that the long suffer-
ing business people throughout the en-
tire country be permitted to have
little breathing spell SO that they can
start anew their activities. tho essen
tial Of which, to meet with success, Is
the exercise Of good judgment. which
calls into requisition courage and ini-
tiative? These qualities they are. at
present entirely denied the use OF. ow-
ing to the uncertainties connected with
the outlook. No one in the present
conditions of things can summon suffi-
cient courage and confidence to go
ahead in any way excepting on a re-
tail basis. What business people need
today Is a rest after the long drawn
out trying experience Of late. and this
can only come effectively by the adj
journment Of congress. Why won't the
members, therefore. be magnanimous
and exercise the self-denial suggested
by going home and thereby give the
business people Of the nation rest.
as well as take one themselves. which
they certainly must need after their in
defatigable law-making effort? With
a good outlook for our coming crops
and a long enforced rest for our busi-
ness people, recovery would begin al
most instantaneously on the announce
ment that congress had adjourned. The
Mexican muddle would then soc~ cease
to be a serious menace. which. owing
to tho gloom over the business situa-
ton existing at the same time, makes
II appear a momentous matter. where
a. IL taken alone it would not be con-
sidered as Of any very important con-
sequence.
IF the present tendencies continue
it may be set down as certain that the
ranks Of the unemployed will be ma
terially augmented during the next
few months. An additional cause of
disappointment is the prospective delay
of a decision by the interstate COM
merce commission on the rate problem.
Some concessions may be made to the
railroads, but these do not promise to
be liberal, and the decision may be de-
layed several weeks, II not months.
General business Is perhaps not 50
dull in volume as the condition of SEN
timent would suggest. Bank clearings
In the United States during March
showed n decrease Of per cent. COM
pared with q year ago, and the total
for the three months presents a de-
crease Of about III per cent. The
shrinkage was confined almost entirely
to the Middle and New England states.
The Western and Pacific Coast states
show moderate gains. The industrial
situation, however. Is spotty. At the
west the volume Of trade is fairly well
sustained. and there is no such depres-
sion as exists in the east. The iron In
dustry, however, feels reaction more
than any other, because of the finan-
cial restrictions placed upon the rail-
roads and the recession in real estate
and building This Is particularly IL
Illustrated in the clearing house returns
at Pittsburg during the first three
months of 1914, which were nearly IL
per cent. below the same period last
year. New orders for iron are coming
in very slowly and prices seem low and
unsettled. There is some talk of a re-
duction in wages, but a general move
ment Of this sort would unquestionably
create considerable disturbance. The
textile industries are also in an unsat-
isfactory condition. the consuming de-
mand having declined somewhat and
manufacturers being embarrassed by
high prices for raw materials and labor
at a time of contraction In prices for
their product.
Fortunately. however, there are
some encouraging elements in the sit
uation. The most important is the as
| surance Of easy money for the next
three or four months. While this is
partly due to slackness in trade. such
q condition is always a factor Of much
importance in restoring normal activ-
| ity. There is abundance of capital
awaiting investment. If confidence only
warranted. This was proved by the
comparatively successful sale of $685.
100000 New York city ~ per cent.
bonds. the bids for which aggregated
nearly 500. 000, 600: while for last years
offering of $45,000. 600. the bids only
amounted to $4,000, 900. All things
considered, the sale was satisfactory.
Our crop outlook is promising. The sea-