Evening times-Republican., 1914-01-03

Tari6 chAaA asisatsl ~ ssa,issd,
were brake on new roductl0o - ~
autumn, ana the ocArcity ~ nOnsy
conspired - make new enterprise
cautious. Industrial output while large
early. showed repression later and
sagged, tho the impetus given produce
tion early made In many cases for rso-
ord production.
Failures.
The years failure record was Q full
one. exceeding that for 1912 by - per
cent. and that 1908 by : 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, good part Of the balance
being contributed by large dealers In
rubber, In automobile, iron and lum-
ber manufacturing and coal mining.
Failures in the flrst half Of the year
were below those Of 1912, and the la
bilities 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 mentioned. and the
last quarters failures and liabilities
were the largest for two years. Thru
out the entire year 1913 az In 1912, the
large number Of small failures called
attention anew to the fact that the busi
ness community has been greatly dl-
luted of late years. In tho ten years
from 1904 to 1913. inclusive, the num-
Der in business Increased $4,000 per
year, or by IS per cent. whereas the
increase in population was not at much
over half this rate. This caused q
rise in the percentage falling 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 over that time were COM
planned Of.
Looking Forward.
The liquidation in the stock market
in 1913 was apparently thorough with
out being panicky.. Trade and Indus
try in turn showed symptoms OF IN
orderly retreat rather than a preci-
pitate fight, 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 cit
les. The complete history Of the 1907
o3-04 collapse and quick revival. some
OF whose earlier happenings were
closely paralleled in 1913. will repay
perusal because holding some lessons
and indeed some encouragements. 1t
IS generally conceded that while the
entry Of industry into the stock mar
ket in q capitalized form has made 1t
more sensitive to unfavorable hap
penings, it has also made 1t quicker to
respond later to improving influences.
The best judgment seems to support
the view that money. the great desid-
eratum in finance and trade. will be
both cheaper and easier to obtain In
1914 than in 1913. The passage OF
the currency bill is expected to be an
aid in this respect, whatever may be
Of ultimate effects Of the pos
sible imitation feature of the new mea-
sure, which has supplanted serious
ly defective system. OF course. and Ill
considered rise like that of 1895. with
its aftermath Of deep depressing is to
be avoided, and the possibilities OF
Europe endeavoring to further liqui-
date its burdens in American markets
are to be considered in this connection.
though our immense credit balance
may help US in this respect. Money
however, should be plenty for legiti-
mate trade and industry in 1914. and
the absence of burdensome stocks.
owing TO long continued hand.to-
mouth buying. should be helpful.
It will not be forgotten that many
crops were short in 1913. and prices.
particularly Of food, were high, which
may have helped agriculture as a
whole. though no country ever made
much money out Of its own crop shor-
tages. AS to 1914 crop conditions, IL
may be said that conditions arc favor
able and winter wheat IS in excellent
shape. The matter Of possible rail-
way rate advances presses for early
solution. All Of the advances asked
for in past years would have been IN
sufficient to save some badly managed
from the effects Of their
own sins, but the Justice. indeed the
absolute necessity, Of allowing the
railways to recoup themselves for
denied. In this matter the auguries at
the outset Of the year are thought fa-
vorable, and II they prove 50 should
have an important effect in stimulate
ing demand for variety Of articles
which move through the marts ct
trade.
Whether any great liquidation in
commodity prices is possible in 1914 Is
and without that the often
predicted liquidation of labor seems
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