The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-03-31

The financial community - Btiu IN
q state of hopeful expectancy
writes Henry Clews. the New York
banker, I'm h11 current Weolkly Aunn-
cial review, and he continues: mo
little disappointment exists that the
market has not Ihown greater
strength; yet It must be remembered
that We are passing through q period
Of trade depression and industrial. re-
adjustment, which - worldwide and
not by any means confined to the
United States. We are Inevitably In
ono Of those periods Of economic re-
action to which we must adjust our
selves whether we Hike it or not. and
which are best met by candid appre-
citation of the facts. It Is Of course
unnecessary to deal with the past, or
with the causes leading to present re-
action: but a survey Of the present sit-
uation ct homo contains both sober
ing and encouraging features.
The great transportation interests
of the country are still paralyzed by
INDIGESTION of the interstate commerce
commission regarding an advance Of
rates: by the unfriendly attitude Of
COu8ECSSp ny INC 1OOSS9 nAA4CS00
through severe weather. and by gen.
era1 trade slugeishness. The steel in
dustry is suffering from a continuous
lack Of orders. due chiefly to finan-
cial inability of the railroads.. ana to
the reaction in building a. well a. to
general trade slackness. The United
States Steel corporation failed to earn
its entire dividend in the last quarter
Of 1913. and there Is good reason to
believe that the full dividend will be
unearned during the current quarter.
The great textile industries are also
feeling reactionary tendencies. Con-
sumption is declining somewhat owing
to unemployment among the masses
and the general necessity for economy.
Our cotton mifls are still facing sefi-
Gus problems owing to declining
prices for fabrics, relatively high
prices for raw material and rum
blings of fresh demands for higher
wages from labor. The wooden indus
try is exceedingly spotty. A, few mills
which boldly met the conditions aris-
ing from tariff changes by sharp
reduction in prices secured plenty of
orders and have been doing a salts
factory business. Those who hesitated
to make the plunge are feeling the
pinch of circumstances. and more than.
Copper producers have had q hard
year, but lately seem to have been do
ing better. The sugar industry is in
a similar position. The rubber indus
try Is also doing a larger business
after a period of severe contraction.
The tobacco industry has felt the eff
feet Of disruption and increased COM
petition. but is nevertheless giving q
good account OF itself. The boot and
shoe industry slowed down consider
ably; nevertheless the Central Leather
company u doing very satisfactory
trade. AN Of the oil companies have
been doing a tremendous business and
making unusual profits owing OF
course to the great expansion in the
uses Of petroleum. Our fertilizer
companies are expecting a good year.
The asriculturak implement concerns
have not done well. some having 4.an-
ufactured an. oversupply. while others
are overloaded with a mass of farm
erS notes which are not being met as
rapidly as expected. The real estate
business is anything but satisfactory
for reasons already we'll understood.
The February building returns for $50
cities reported prospective OUTLAWS of
over SEC. 900, compared with over
100000 a year ago. In Greater
New York the total for the month
was only 100000 this year. against
$15,0O0,O00 a year ago.
Washington remains a source Of
uncertainty and disappointment in re-
gard to delay Of the rate decision.
Nevertheless it is quite probable that
some concessions will be made to the
railroads, not less, say, than 2 y to 8
per cent II denied, the outlook will
prove decidedly serious, and we may
anticipate a series of dividend reduc-
lions. the injurious effects OF which
would extend far beyond the many
thousands Of stockholders directly in
terested. PROFESSIONALLY serious
financial arrangement would follow a
denial of fair treatment of the rail-
roads. The Mexican situation Is an
other element of uncertainty. Every
week Of 'watchful waiting brings us
HCdECI oCluoA AHScAVCuSAOus anu ~ N
sincerely to be hoped that some set
Element will, be reached before pro-
longed irritation arouses the United
States into evaporation and then ag-
gressive action. The new antitrust
bills now before congress are a source
of much uneasiness among business
men upon whom the initiative de-
ponds. These bills are unnecessary,
because the Sherman law has already
been amply interpreted and defined by
the supreme court They will SIM
ply confuse the situation and might