The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-09-02
BUSINESS AND THE WAR.


writes Henry Clews. the New York
banker. in his current weekly financial
review. Here much progress has
been attained and more will follow.
Abroad the situation is different. Ger
many's enormous commerce and indus
try is of course practically paralyzed.
Beyond taking care Of her own imrhe-
date internal necessities, industrial
Germany il unavoidably at a standstfll.
Upon that country the stress of war Is
falling with intense severity; and.
whether sympathixing with the German
cause or not, one cannot but deeply re-
fallen upon that progressive and en-
lightened nation. Upon little Belgium
and upon France also. two of the = -
advanced countries in the world. the
blast of war has &C with crushing
force. These two nations will suffer rel
atively even more than Germany; for
their fairest and most prosperous sec
tions are being devastated by immense
armies and wholesale destruction. Upon
Russia. Austria. Japan and other ma
nations. the blow Will be much
less severe because they are out of the
field of conflict. Upon Great Britain
the effects of the war cannot yet be
told. If short. the loss will not be so
great as in the case of Germany; and
would soon be at least partially COM
pensated for in various directions, such
as new avenues of commerce, new col
onies, new markets, new industries and
the hope OF a decline in militarism. But
her military leaders are not INDUCING
in false hopes. Germany's ability and
endurance as fighting i.ation are not
to be underrated; and il overcome it
will only be through overwhelming
numbers and superior resources. At the
the best that can be hoped for
this colossal conflict is that
before long a decisive battle will be
fought. which will check the mad
carnage and induce all parties to refer
their claims to some form Of diplomatic
A great battle might easily
be the occasion for proposing an ar
mistice; and 1t goes without saying that
from no country in the world could such
a suggestion come with more grace and
more force than from the United States.
stupendous struggle may be quickly
brought to an end, and not prolonged
by passion on either side. When sanity
regains its sway in Europe there will be
Reasonable hope of such a consumma-
ton.
THE financial situation in New
York, though still much confused,
shows some improvement. There is
calmness regarding the seriousness Of
the situation which at least is reassur-
ing. Our banks are cooperating to
meet a grave situation in the most
energetic and cordial manner. The
government also has done much to re-
lieve the situation and prevent HARM
full stringency. If any suggestion could
be offered toward further aid in the
it would be in the direction
of q more generous use of clearing
house certificates. A little more judi
cious liberality on part of the banks
would certainly be helpful, and the
great danger is, that unless this is
granted. the way may be paved for
inflationary schemes in
congress. This is the time for men to
hold their heads, avoiding impulsive ac-
ton and adhering strictly to business
methods which experience has proved
sound and true. The banking country
has an abundant supply Of gold, the
amount available for banking purposes
being estimated at over s., 500, 0OO. 900.
1.-THE business community in New
York and elsewhere has met the shock
far better than anticipated. OF course.
there is much confusion. especially in
import and export circles arising from
the Generalization of the foreign ex-
change market. This is abating some
what each day and the financing of
imports and exports is becoming less
and less difficult, though the end Of
trouble is by no means in sight. There is
now no longer a lack of transportation
to countries with which international
commerce is possible. Exports of wheat
have been upon a more liberal scale,
and are likely to continue at high
prices. this staple having already
shown very violent fluctuations. The
cotton situation is still serious and re-
quires most judicious handling. OF
course the four million bales which
Germany usually takes will be carried
or consumed in other markets, and the
problem of financing the coming crop
is one now that is receiving the serious
attention of our bankers and cotton
efficiently aided by the gov
eminent at Washington. The affect OF
war upon the British export trade Of
cotton goods will not be as severe as at
first expected: provided England keeps
the routes to China and India open. and
provided too many of her operatives are
not thrown into the army. Our own
exports Of cotton goods should ma
terially increase. the conditions being
very favorable to American cotton mills
running on export fabrics. Our steel
trade is also beginning to feel the eff
fects Of foreign inquiries for steel