The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-01-03
The Liquidation Begun in 1919
Has Continued.
The Balkan War Has Revealed
OverbOrrowing Abroad.
GOLD HOARDED N EUROPE
Military Preparations De-
pressed American Securities.
United States Lost Gold Instead
of Importing 1t.

New York, Jan. 3.-Nineteen hundred
and thirteen was year OF disquiet ano
disappointment alike in foreign and do
mestic finance, trade and industry. The
disquiet was world wide. though until
the latter part Of this year not 80 much
In evidence at home as abroad. D1s-
appointment was keen with those wno'
with knowledge Of the many poiitico-
economic domestic problems pressing
for solution, were hopeful that the ex-
ceptionally strong position OF this coun-
try's producing and consuming inter-
egts would render us partially indie
pendent of, II not entirely immune to.
the play Of the large financial FORCES
dominating the world in the year just
closed and making for depression In
finance and trade.
Review of last years events would
prove incomplete II sight were lost OF
The many resemblances 1t bore to 1902
and 1903. just ten years ago; when the
occurred. The congestion in the Sc
curities markets was in evidence, the
phrase Financial Indigestion" was
coined, the results OF much inJuotc1ous
capitalization Of industries were mani
fest-first in collapsing stock market
prices and later in depressed trade ana
Industrial conditions strikes
and bank suspensions occurred, and all
the usual aftermath was presented OF
an extended financial or credit situation
being readjusted. 's-.'-.-
The Balkan War.
It has been frequently and with JUS
tice said that the Balkan war and its
attendant evils did not cause but .rath-
err precipitated and revealed the world
wide financial strain of 1913. 1t must
with equal justice be held that most
observers failed to adequately measure
and forecast the effects. direct and in
direct, of the war which, starting In
October. 1912, drenched the Balkans
and European Turkey In blood. con-
verted eastern Europe into an armed
camp. caused boarding OF gold In Aus
tria, France and Germany. put q pfac.
teal period to the European hnanciai
and commercial boom. and in steadily
widening circles reached into and al
fected the finances and trade of coun-
tries thousands Of miles away from and
apparently uncOnnected with the hos
tilities. 81
No country proved immune. and all
felt the strain of an already greatly
overtaxed credit situation. inability to
borrow new loans and difficulty in get
ting old issues refunded. Brazil and
India. Germany and Austria, France
and England, Canada and Mexico. as
we'll as the United States. were affect
ed, this country. perhaps least of all,
because OF our wonderia. e1por. eraue
of the outer worlds forces. Once again
our membership in the family Of ma
lions brought home to US the real IN
Independence Of the countries. and
when we confidently expected relief for
our own financial needs from our enOr-
NOUS export balance. instead Of gold
supplies paid us in settlement Of these
balances, we received back our own Sc
curities, which as in other years OF
general strain sold most readily in the
worlds markets. Indeed. as the result
of three cornered exchange operations.
we found ourselves paying other ma
tons balances in markets where our
own trade interests required payments
to instead of disbursements by us. OF
the worlds chief circulating medium. /
Worlds Financial Problems.
The worlds financial difficulties bulk ]
ed large IN our list Of problems. but
there was no lack Of items of domes-
remarkable for its length. too much |
agitated and frequently fought-over
questions were forced to a conclusion. |
The tariff was revised. but its enact |
ment, by the way, was coincident with |
a shrinkage instead Of the predicted
enlargement in our import trade, and
coincidently an income tax law was put
In operation for the first time since
the civil war period. The currency
measure, designed to take the place Of
an outworn and often discredited sys-
tenn, also became a law. The Union
Pacific-Southern Pacific railway mer-
ger was dissolved, and terms were |
agreed upon between the telegraph and |
telephone interests and the country's |
law officers without the aid Of a suit. |
thus pointing the way to an ending Of
the ten-year period Of marrying SOCIAL /
ed big business through the courts.
Despite. however the numerous draw |
backs arising from money scarcity and
credit strain. the discussion Of new eco
nomic measures in congress. the con- |
tinued agitation Of new and old laws
affecting the rights of combination, the /
lowering of the tariff, the unequal. in
some cases deficient, yields of staple
crops. the very high levels of prices of
commodities, numerous failures, heavy
liabilities and hand-to-mcuth buying
OF a piece with that noted each year
since 1907. many new records OF trade
volume and industrial output were set
up. The backlog of unified orders on
hand. which were at their maximum
at the opening of the year. tended to
decline as the spring advanced.
Scarcity of Money.
Money scarcity was in evidence from