The Topeka state journal., 1914-01-20
CoNrIDENCE is REvIvING.

New York banker, az expressed in his
current weekly financial tevtew. that
about the best news that has come to
the world Of trade and finance lately
10 the advices from Washington that
President Wilson IL planning to re-
deem his pledge for building up
business" on constructive lines and
that the president believes that the
true solution Of the trust problem does
not lie in destructive methods.
Outside Of Washington" writes Mr..
Clews in his review OF the conditions
in the business arena, "the most help
full change has been the growing ease
Of money at all financial centers. Lo-
cal bank reserves are rising. Funds
a. e returning from the interior. Com
mercial paper has been much more
active, and monetary conditions gem
orally are promising. This change in
the financial situation will have far
reaching effects. Lower rates Of in
terest mean higher prices for stocks
of undoubted dividend-paying power.
The better condition Of the money
market will also materially facilitate
the large amount of refinancing neces-
sary during the current year to meet
maturing short-term obligations. 1t
may also facilitate the placing Of new
securities. which for the last three
months have been held back in large
sums. The resumption Of gold ex-
ports was expected and need cause no
alarm. It Is understood that Paris
alone will take At least $40. 100000 Of
gold, and we may also be called upon
to ship. as heretofore, important
amounts to Brazil and Argentina.
Shipments to Canada have apparently
ceased. and with the close of the
Canadian crop movement the amounts
recently sent there may return to this
market. There is nothing in the gold
export situation to call for uneasiness.
We have a large supply Of the precious
metal and can readily meet prospec-
tive demands. The effects Of our
sending gold to Europe must be bene-
ficial, since 1t will materially relax the
strain in London, Paris and Berlin,
and the relief there will be reflected
favorably upon our own market.
'In commercial circles there is a
distinctly brighter feeling. Confidence
is reviving as result Of the new
policy at Washington, and long defer
red operations are being taken up for
execution. The steel trade has turned
the corner. Orders are coming in
more freely for many steel products:
prices are firmer, and it is estimated
that about so per cent of the steel
capacity Of the country is now en-
ployed. compared with so per cent q
short time ago. Prices Of steel prod
ucts are generally firmer. Up to date
the railroads have not been free pur-
chasers, but If present conditions con-
tinue they will probably soon be
obliged to enter the market more
freely In cotton goods there is a dis
tinct improvement. and many buyers
are now in this market. They have
been operating cautiously; but. with
bare shelves throughout the country
and good consumptive demands. con-
ditions favor a more satisfactory trade.
The wooden business seems to have
passed the worst of the shock due to
the new tariff. and many of our up
to-date mills are turning out fabrics Of
a quality and style and at prices which
will effectually defy foreign competi- |
ton.
LESS complaint is heard nowadays
about the high cost of living, which Is
probably due to the fact that COM
modify prices are frequently lower.
Sugar, coffee, flour and even some |
kinds of meat are selling today at
lower prices than for q long period. |
AS yet. consumers have not really felt !
the benefit of lower prices from the
lower tariff. largely for the reason
that these concessions have been abb |
sorbed in higher wages and In liberal
retail profits, not to speak of better
living. Economic changes, however. |
always work slowly; and in time and
with reasonable competition there Is
no doubt that the consumer will ulti- |
mately find the cost Of living on the |
decline"