The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-11-17

for the better are taking place IN inc
financial position" writes Henry Clews,
the New York banker In his current
weekly financial review. and he contin-
ues: These are reflected chiefly IN
easier money, break in sterling ex-
change and improvement in the credit
outlook. By far the most important
current event In the opening OF the
federal reserve banks. OF course. these
institutions will not be in full operation
probably for several weeks to come ana
some temporary Inconvenience may be
caused by the transition from one bank
ing system to another. These however
will be trifling in comparison with the
advantages of the new system. 1t Is
estimated that, as a result of lowering
reserve requirer vnts from Is per cent
to 10 per cent. including state banks
and trust companies. the increase IN
the amount of loanable funds of the
New York clearing house banks will be
about $3.50, 900 900; and possibly 5000 .000.-
600 in the entire United States. In all
probability there will be a further re-
tirement Of clearing house certificates
and emergency currency after the new
system becomes effective, SO that the
net increase in funds will not reach the
figures just mentioned. Nevertheless,
the increase will be large enough to in
sure a period Of easy money for some
time to come; because the requirements
of legitimate business are very small
owir.- to the continued contraction OF
trade and industry. Clearing house re-
turns continue about rs per cent below
last year. The requirements for financ-
| ing the crops have about reached their
maximum, and henceforth the demands
from these sources will diminish. espe-
cially as our exports of food products
and cotton are very liberal. Another
proof Of revivin9 confidence is the can
collation. by the savings banks Of the
agreement to insist upon the sixty days
clause in regarding to savings. which Is
| now left to the judgment of individual
| banks in this district. Still another
important development was the with
| drawal of restrictions on trading in un-
listed securities. The New York Stock
Exchange is now earnestly at work en-
deavoring to effect an early reopening
with encouraging prospects OF success
Some fear of foreign liquidation still
remains The selling pressure however
has considerably diminished during the
last few weeks. and would. if the Ex-
change were opened, probably be con-
fined to those in positive need.
THE local money market Is easier
owing to conditions already referred to,
and there has been further improve
ment in foreign exchange which touch
ed the lowest rates quoted since the
war began. The appearance of sterling
loans in this market was encouraging.
Il <I~A r To- O.
posed to insist upon the payment OF
our obligations in gold. The establish
ment of foreign government credits IN
| this market. presumably for the pur-
pose Of buying war supplies. was an
additional element of importance in
! the exchange market. Some big for
efgn orders for war material have al
ready been placed in this country. and
all indications point to these continuing
on an important scale throughout the
war. Such orders will prove an impor-
itant compensation for losses in our ex-
port trade in other directions. In fact
our export trade is showing very graft
tying recovery; shipments of foodstuns
| and cotton abroad being unusually
heavy. The destruction caused by the
war will oblige Europe to come here for
| food supplies to a large extent for
months after the war is ended. This
means that the American farmer will
secure good prices for his products. and
! the great grain belt of the United
States, and Canada likewise. Is prom
ised at least another year OF prosperity
from this source. The United States
does not wish to prosper at the expense
| of other nations; but it ia not In any
sense responsible for the present de-
:, structive war and cannot be expected
to do otherwise than gladly accept any
advantage that may legitimately come
it's way as the result Of a terrible catas-
trophe. This country is supplying
horses, blankets, saddlery. boots and
shoes, clothing, auto trucks and many
other forms of war material in amounts
that will run up into the hundreds of
millions. At present these are the only
! bright spots in our Industrial activity
: The steel trade continues much de-
pressed and is running at only about
one-half the normal capacity. Our tex
tile industries have been much disturb
ed by the cotton situation. and nov
the wooden industry is threatened by
the embargo upon Australian wool. Oul
. railroads are suffering from the dimin-
ution of freight caused by slack bust
ness. The large number Of idle cars
, and the big decrease in untitled orders
J on the books of the United States Stee
, corporation are unwelcome proofs o.
: business stagnation in the east. In
l dications. however. point to an earl,
recovery. especially in view of bettel
, money and credit conditions: although
. no very radical improvement can b.
: anticipated at once.