The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-04-28
WARS EFFECT ON BUSINESS.

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WARS EFFECT ON BUSINESS.
''The long dreaded clash with Mexico
has come" writes Henry Clews. the
New York banker, in his current
weekly financial review. and no con-
tinues: what the end will be 10 1t
present beyond human foresight. A
costly war may result. but there is
still hope that it may be averted. The
effect OF such q calamity upon domes-i
tic business should not be particularly
serious. It's effect in local financial
circles has already been largely dis
counted.
Financing Of the war would prob
ably be accomplished through stamp
taxes and the issue to start with of
per cent short treasury notes which
could be readily marketed. Some
other forms of taxation may also be
necessary. The sugar duties might be
restored or a tax imposed upon coffee
and tea. In addition to these propo-
sails, some OF which may not prove ac
ceptable. the expectation is that the
government will make a liberal bond
issue on a basis Of 3h per cent. 1t il
practically certain that an issue on
these lines would be promptly alb
sorbed. OF course. a bond issue on
these lines would withdraw capital
from other and more productive direc-
tions, and might temporarily depress
the general bond market. There is,
however, no lack of capital seeking
desirable investment, and the govern
ment bond issue for carrying on war
with Mexico would have little harmful
effect Mexico will be unable to Sc
cure any considerable amount of for
eign capital for carrying on the war,
a factor which would hasten prostra-
ton in Mexico and tend to shorten the
period of hostilities.
"Outside the Mexican incident,
there is little change in the financial
situation. Railroad earnings are
showing smaller decreases than was
the case a month or two ago. There
has been rather more activity in the
iron trade, the railroads having placed
a number of orders for equipment
There is also partial revival of gen.
eral trade in the west, where depres-
sion has been less severe than in the
east. Crop conditions are still re-
markably satisfactory in spite Of a
backward season. From all parts of
the country reports come that the
soil is in excellent condition; and win
ter wheat continues to maintain it's
exceptionally high stand in nearly all
sections. Our textile trades are still
somewhat depressed by curtailed con-
sumption. low prices. labor problems
and tariff uncertainties. General trade
is fairly we'll maintained. but declin-
ir1ep hov to- -
rather serious inroads on profits. AS
a result quite a number Of decreases
in dividends have recently been re-
ported. and the total dividend distri-
button in May is calculated at $780,
| 100000, or more than 100000 less
than a year ago. A somewhat firmer
| tone exists in the money market, rates
for both time money and commercial
paper having slightly advanced. There
has been some expectation Of gold ex-
ports to Paris, but these may be off
set at any time by the prospects Of a
government bond issue at home.
Home politics as a factor have for the
time being been overshadowed by the
seriousness Of the Mexican outlook.
and nothing further has developed in
the rate situation.
'"The foreign outlook is not entire
ly satisfactory. Russia is In fear of
fresh revolutionary difficulties. Aus
tria Is fearful Of international compli-
cations which might arise in event OF
the aged emperor's death. Paris is
still feeling the after effects of the
late European financial strain. and
threatens to draw upon US for gold.
London is in fairly good shape be-
cause Of Britain's' extraordinary pros
| perity; yet IL in a very cautious mood
and decidedly critical toward our
Mexican policy. Mexican securities
have declined considerably in that
market, which is much more pes
simistic regarding the consequences OF
war than ourselves.
| Much as the Mexican outbreak is
to be deplored, it will have the effect
Of starting new activities and divertine
public attention from ills upon which
it has been brooding far too long. The
nation, 1t is true, has serious domestic
problems to solve. This has always
been the case and always will be
Business, however, must go on. Food
clothing and shelter must be provided
under all circumstances, and while
enterprise ana new development have
been temporarily restrained the regu
lar activities Of life are going on mucl
as usual
THE SEWER GAS BUGABOO.
After complicating our plumbing sys