The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-03-10
BUsINEilss MOVING SLOWLY.

f~- a- .
BUSINESS MOVING SLOWLY.
transactions on the stock exchange
in both bonds and stocks are larger
than year ago. but still considerably
below. the proportions Of previous
years:.' writes Henry Clews. the New
York banker, in his weekly review OF
the business and financial situations
in the country, ana he continues:
Neither confidence nor business have
vet fully recovered from the shocks ana
reaction Of the last few years. This
week the market was discouraged by
Developments in Mexico. by the poor
reports of a number OF eastern trunk
lines and by the recent severity of the
weather. which imposed a sharp re-
straint upon traffic and industrial OPP
erations in general. Steel orders were
! less in February than in January. al
though mills were more busily en-
ployed on account of the increase in
January orders. Generally speaking.
the business situation Is sound. and the
outlook is for improvement when spring
approaches. The declining tendency of
money has been checked. and there is
the possibility Of temporarily firmer
rates as the first of April approaches.
Bank reserves have fallen from $40,-
cocoon in the first week of February to
below $27 .000. COO week ago, loans
meanwhile having steadily increased
from 81. 84S, 900, 900 December Is to ST..
057. 754.00 a week ago. The reserves,
however, will soon be aided by the re-
turn OF Canadian funds to this market.
which will serve to compensate for the
further outflow Of gold to Paris. The
western credit situation still attracts
some attention in view of the real es-
tate situation out there. and the fact
that the farmers are in debt more
heavily than usual. although not to any
embarrassing extent. The crop situa-
ton is now a matter of increased IN
terest. and the heavy precipitation of
snow and rain during the winter
months should leave the soil in gener-
ally good condition. The railroad sit
uation is still somewhat embarrassing
owing to declining earnings. which en-
phasize the necessity of the interstate
commerce commission granting some
concessions. It can hardly be expected
that the full per cent. will be con-
ceded, but there is good reason to hope
for 21a to 3 per cent. advance, par.
ticularly on the eastern lines which are
feeling the depression much more Keen
ly than those in the west. No lasting
improvement can be expected in the
railroad situation until this rate prob
lem is settled. The outbreak in Brazil
had more effect in London than here.
though this market is sure to feel the
disturbance indirectly.
Evidence Of business torpor Is found
IN the monthly statements of new In
corporations in the eastern states
those incorporated for 81 900 900 or over
having amounted in February to only
SOL 900 900, compared with $191 ,O00. 600 a
year ago. Since January l. the total
was only $171, 900. 900 in comparison with
1921. 900 900 a year ago. Allowing that
the figures for year ago were UNI
usually heavy. this is striking Illus
.tration of the shrinkage in business
initiative. The record OF new security
issues confirms the general trend. The
total issues reported since January l of
railroad and industrial corporations
was $500. 900. 900. against $493. 0o0,oo0
Year ago. For the month of February
the total was $176 1000. 900 as compared
with $343. 100000 in February of last
year, when the returns were also ex-
ceptionally large. Nevertheless, there
has been a notable Improvement in the
bond market during the last few weeks
when the issues were of desirable
character: and 1t is notable that
larger proportion of new financing has
been accomplished with long term
bonds than with short term notes.
which have been regarded as nothing
more than floating debt. This is an