The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-11-24
THE SILVER LINING m SIGHT.

utAIys WI1te8 x1euEy OI0Wos NAAS A~Sy
York banker. in his current review OF
the conditions that prevail In the world
Of trade and finance; and he continues:
The federal bank has made a good
start: the New York Stock Exchange
will soon open for bond dealings: the
Cotton Exchange has already reopened
successfully: exchanges in various
parts of the country are also resuming:
our foreign trade shows remarkable
recuperation; sterling exchange IL al
most back to normal; the gold pool IL
being closed out: the cotton pool is
now hardly necessary; money Is fairly
abundant and easy. and commercial
paper 10 In decidedly better demand.
Evidently the credit and financial ma
chinery of the United States. which was
SO thoroughly dislocated by the war, Ii
rapidly and surely returning to normal
conditions. Our banks and bankers
have at least put into practice the
theories which they professed-that the
way to resume is to resume.
I'm nearly all quarters where initia-
tive must begin. there is a distinctly
more hopeful spirit. This has been en-
couraged. not only by the developments
referred to above. but also by the re-
peated declaration of President Wilson
that business needs a rest from dis
turbing legislation. From the presi-
dents recent utterances it Is safe to
hope that there will be cessation OF
legislative attacks upon business. There
is also one other respect in which MI.
Wilson's recent remarks are signifi-
cant. and that Is his insistence upon
fair play to the railroads. The presi-
dent evidently realizes the very critical
position of the railroads arising from
unavoidable increases in expenditures.
decreases in revenue plus persistent re-
pressive and prejudiced regulation.
Thus far government regulation as
practiced by the present interstate
commerce commission has proved to
say the least disappointing. 1t is griev.
ously Gripping the railroads and con-
sequently depriving the public Of facili-
ties which they sorely need. Under
private management there was no lack
Of facilities. In fact they were usually
offered in advance in order to develop
traffic. That is now impossible under
the present starvation policy of the
interstate commerce commission. which
is anything but a judicial body and
seems bent discouraging private enter
prise in the railroad world. At least
that is the effect Of its present attitude,
and there is no wonder that the cry IL
being raised for it's adjustment. Some
one has said that we are burning the
OF ny1dQ might
be added that we are burning it in the
middle also.
I'm other directions the symptoms
of reviving confidence are also fortu-
nately multiplying. The great steel
industry Is still exceedingly dull. run
ming less than so per cent capacity.
but there is better inquiry for pig
iron and Indications Of a<renewed IN
terest among buyers owing to further
cuts in prices. Our great textile trades
are In better condition than a month
ago. the cotton industry benefiting
from improved financial conditions
situation. In the WOODEN industry
there is considerable activity in GER
tain directions owing to the placing
Of large orders for cloth and under
wear for foreign armies. At the~West
business is in fair condition in spite
of recent setbacks. and this Is partic-
ularly true in the grain belt where big
crops and good prices are exerting
their full stimulus. The South is nat
urally much depressed by cheap cot
ton. but as the financing Of the large
H,oo Loot 6iHH4,,1f nd
demand improves, depression will be-
come less acute and the necessity for
creating a big cotton pool will be less
and less urgent. The less artificial
regulation there is the better. Demand
and supply are the best regulators.
The blow to the South is only tenn
porary, the resources OF that section
being in no sense crippled. and before
long arrangements will undoubtedly
be effected to carry the surplus over
till next year. Meanwhile, the South
will be stimulated into a still further
diversification Of it's crop whenever
feasible. Current railroad returns are
anything but satisfactory, although by
severe economies the roads are able
to q considerable extent to offset the
shrinkage in revenue. Later on the
results, gross and net, should prove
more satisfactory. Clearing House re-
turns are showing smaller decreases
than in previous weeks. With the re-
sumption of various exchanges the
comparisons are bound to be more
favorable as time progresses. Our
monetary situation Is decidedly bet
ter. The new reserve bank was
launched without any difficulty. and g.
sense of relief already exists owing to
the increased credit facilities which
will result under the new system The
surplus reserve under the new system
will probablv touch 100000. 900 this