The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-11-03

tucy are lOOAlu8 IOx - IA OVPOI tuulty
to publish the truth. III You are un-
truthful and unfair" adds Judge Gary.
you may expect to take the conse-
Quencea." :
BUSINESS RECOVERY IN SIGHT.
THE financial situation grows
brighter almost daily In spite Of the
heavy European war cloud" writes
Henry. Clews. the New York banker.
in his current review Of the conditions
that prevail In the world Of trade and
finance. and In the matters of pubic
moment that have bearing ON them.
And Mr.. Clews continues: This week
there has been q marked progress in
clearing up the foreign exchange sit
uation. and the restrictions Upon
credit. foreign and domestic are be-
ing gradually lessened. One Of the
most striking evidences Of improve
ment has been In the recovery of our
from the effects Of war shown in the
September statistics. In that month
it will be recalled our exports declined
$e2.0O0.o00 and our Inn 1rts $s1.o0o,-
900, the loss in exports being largely
Ing chiefly in manufactured products.
in cotton and the loss In imports be-
ing chiefly in manufactured products.
Our export tr: during the current
month. and especially during the past
week, has been particularly active. The
increase In raw products and war sup
plies has been very conspicuous: Cot
ton has been going forward very free
ly: and the announcement by Great
Britain that cotton will mot be consid-
cred contraband, even to Germany, in
sures a continued free movement of
this staple. This Of course will ma
terial1y relieve the cotton situation.
and will also serve to settle our for
eign debit balance and check gold ex-
ports. To the south, which is largely
upon foreign buying Of cot
ly welcome, even If cotton does go out
at very low price. The proposed
cotton loan OF $1S5. 00o.00O under the
of q committee of the
federal reserve board has received
support. although there
are some doubts as to its legality.
The plan is meeting with much favor,
in the south, as a matter
of expediency in great emergency.
The federal reserve banks will open
about two weeks hence. This insures
relief and ease in the mon
etary situation. Barring any temper
airy local stringency which might ac-
company a transfer of funds to the
federal institutions, it is estimated
that the reduction in reserve require
ments which will follow this operation
will result in IN expansion of pos
sibly $30O,O0O.00O in loans. This
should insure continued ease in money,
and will materially facilitate the re-
tirement of clearing house certificates
and emergency currency which have
already been withdrawn to q consider
able extent. .s5ssEs4 g-ss
These five conditions-easier money.
better foreign exchange situation. early
opening of the federal reserve banks.
in our export trade and a
good harvest-are the five brightest
and most encouraging features in the
American business situation, which in
other respects is still very unsatisfac-
tory and passing through a critical
period. 1t is not desirable to dwell too
upon the discouraging side of
affairs. yet it would be dangerously
foolish to ignore the many unsatisfac-
tory conditions. Bank clearings are
ago, the decrease being greatly en-
phasized by suspension of the various
stock and commodity exchanges Rail-
road earnings are unsatisfactory. those
reported for the month Of September
showing a loss Of per cent, while for
the first two weeks OF October the
losses have been from II to Is per cent.
Building operations are running about
one-third below last year. Dividends
have been cut or passed by an unusual
ly large number Of industrials. The
railroads. it may be noted with salts
faction, have maintained their regular
payments remarkably well. There has
been a further increase in the number
of idle cars. and also in business fail
ures. The steel trade Is now running
less than 50 per cent OF its capacity
and prices continue weak. The textile
Industries were much deranged by the
war and the fall in COTTON, but are now
showing greater steadiness and activ-
ity. Such facts as these are already
too familiar. They chiefly reflect the
shock Of the European war upon the
United States. Fortunately. there is
good reason to believe the worst eff
fects of that shock are already over.
There is every announcement for be-
lieving that the rebound has fairly be-
gun. Recovery is already IN sight.
That our financial resources have been
successfully placed ON a war basis.