The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-01-03


earfv In the year onward TO its Close.
seeking the form Of close scrutiny g
credits rather than that OF acute high
rates, which indeed were rather con-
spicuOusiy absent.
fnance was given at q critical time
early in June, by the secretary Of the
treasury's announcement AZ to the pos
sible use of emergency currency ana
the placing Of government money In
the banks in the surplus crop-produc-
ing areas. The then good crop outlook
was OF course helpful. but with the
realisation of the drouth's damage ~
the west and southwest In August and
September. business in large lines quiz
eted down. Tariff changes. aettated or
realized, were a brake ON new proouc-
ton in the autumn, and the scarcity
Of money conspired to make new en-
ternrise cautious. Industrial output.
while large early. showed repression
later and sagged, though the impetus
given production early made In many
cases for record production.
Failures.
The years failure record was full
one. exceeding that for 1912 by 40
ner cent and that for 1908 by 3 per
cent, while liabilities increased 80 per
cent over 1912. though falling per
cent below 1908. Half Of the excess
in liabilities over 1912 was explained
by unsafe banking, a good part OF the
balance being contributed by large
dealers in rubber, In automobile, iron
and lumber manufacturing and coal
mining. Failures in the first half OF
the year were below those of 1872
and the liabilities were only slightly
larger, but the third quarter saw the
balance tip against the current year,
especially In liabilities. which were
swelled by the banking troubles mem
toned, and the last quarters failures
and liabilities were the largest for
two years.
Throughout the entire year 1913. AZ
in 1912, the large number OF small
failures called attention anew to the
fact that the business community has
been greatly diluted Of late years. In
the ten years from 1904 to 1913, in
elusive, the number In business in
creased by $4,000 per year, or by IS
per cent, whereas the increase in pop
ulation was not at much over half this
rate This caused a rise in the per-
centage failing each year. and raised
anew the question whether the heavy
increase in the number Of traders was
justified by the volume of business
done and the known fact that profits
Looking Forward.
The liquidation in the stock market
in 1913 was apparently thorough with
out being panicky. Trade and industry
In turn showed symptoms Of an or
derby retreat rather than of q precipi-
tate flight, and since the improved
feeling noted in the latter weeks Of
1913 set in less Is heard Of rumors OF
business troubles in this and other
l9O2-O3-O4 collapse and quick revival.
some Of whose earlier happenings
were closely paralleled in 1913. will
repay perusal because holding some
lessons and indeed some encourage
nents. 1t is generally conceded that
while the entry of industry into the
Itock market in q capitalized form has
made it more sensitive to unfavorabla
it has also made it quick
er to respond later to improving in
licences. The best judgment seems
% support the view that money, the
great desideratum In finance and
rade, will be both cheaper and cas-
er to obtain in 1914 than In 1913. The
passage Of the currency bill il expected
% be an aid in this respect. whatever
nay be thought Of ultimate effects of
he possible initiation feature of the
lew measure. which has supplanted
l seriously defective system.
OF course, any ill-considered rise like
hat Of 1885. with its aftermath Of deep de-
preston, is to be avoided, and the possi-
iquidate its burdens in American mar
kets are to be considered In this connec-
ion, though our immense credit balance
.ver, Should be Be plenty Tor iesi:imat. trade
Ind industry in 1914, and the absence of
stocks. owing to long con-
hand-to-mouth buying. should be
Short Crops.
It win not be forgotten that many crops
we're short In 1913, and prices. particu-
,elped agriculture as q whole. though, no
country ever made much money 0ue of it's
.wn crop shortage. AS to 1914 crop con-
ire favorable and winter wheat Is in ex-
,ellerat shape The matter of possible rail-
way rate advances asked for in past
'ome badly managed enterpri SEES from the
affects Of their own sins, but the justice.
indeed the absolute necessity. of SLOWING
high cost Of operation can hardly be de-
lied. In this matter the augurieS at the
outset Of the year are thought favorable,
'ortant effect in stimulet ting demand for a
1arfety OF articles which move through
he marts OF trade.
noditv prices Is possible in 1914 Is doubt
ul. and without that the often predicted
iS1 r ton Of labor seems to partake Of
operation, in fact. seem to have come to
Itay. but 1t does seem possible to make
,rosTess In the matter Of reducing the
ornaments. Time will. perhaps, be need
d to heal the bruises: they were hardly
world received in 1919 but past experiences
would seem to indicate that lacking any
'erious damage to the business fabric. Of
comparatively quick revival from the
luiet visible in many lines should ensue.
roverned. Of course nv the money and
:rop DEVELOPMENTS Of 1914