Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-01-03
Liquidation Begun 10 1912
Continued; u 5. Exports
Gold
Legislative OlsquIet at home
Causes Trade Activity
/ Decrease
More Cheerfu|0esS Apparent
During Closing Weeks
Of 1918

Nlnlecn nunuFcO anu tllItecu "da
a year of disquiet and disappointment
alike in foreign and domestic finance,
trade and industry. The disquiet was
worldwide, though until the latter
part Of this year not so much in evil
dence at home as abroad. DisappOint'
ment was keen with those who, with
knowledge of the many politico-econ'
omic domestic problems pressing for
solution, were hopeful that the excep'
tionally strong position of this cOun'
try's producing and consuming inter-
ests would render rs partially inde-
pendent of, if not entirely immune to,
the play of the large financial forces
dominating the -orld in the year just
closed and making for depression in
finance and trade. Review of last
years events would prove incomplete
If sight were lost of the many resem-
blances it bore to 1912 and 1913, just
ten years ago, when the so.called erich
mans" or silent panic" occurred.
Then congestion in the securities mar
kets was in evidence, the phrase "fn-
IIlCl1I lIIOISCoLlOu "HS CO4llCUp tliC
results of much injudicious capitaliza.
tiOn of industries were manifest-firs1
in %collaEsing stock market prices and
later indepressed trade and industrial
cOnditiOns-numerous strikes and
bank suspensions occurred, and all the
usual aftermath was presented of an
extended financial or credit situation
being readjusted.
It has been frequently and with jus.
tice said that the Balkan war and
its attendant evils did not cause but
rather precipitated and REVEALED the
worldwide financial strain of 1918. 1t
must with equal justice be held that
most observers failed to adequately
seasure and forecast the effects, dir
ect and indirect, of the war which,
starting in October, 1912, drenched
the Balkans and European Turkey in
blood, converted eastern Europe into
an armed camp, caused boarding Of
gold in Austria, France and Germany,
put a practical period to the European
financial and commercial boom, and
in steadily widening circles reached
into and agected 'tLe finances and
trade of countries thousands Of miles
away from and apparently unconnect.
ed with the hostilities. No country
proved immune, and al felt the strain
of an already greatly overtaxed credit
situation, inability to borrow new
loans and difficulty in getting old is.
sues refunded. Brazil and India, Ger.
many and Austria, France and Eng.
land, Canada and Mexico as well as
the United States, were affected, this
country, perhaps least of all, because
of 0ur wonderful export trade balance
%cushioning the impact upon us of the
outer worlds forces. Once again our
membership in the family Of nations
brought home to lis the real interde.
pendence of the countries and when
We confidently expected relief for our
own financial needs from our enor.
nous export balance, instead Of gold
supplies paid us in settlement Of
these balances, we received back our
own securities, which as in other
Nears of general strain sold most
readily in the worlds markets. In
deed, as the result Of three. corncred
exchange operations, We found our.
selves paying other nations alliances
in markets where our own trade in.
terests required payments to instead
of disbursements by us, of the worlds
chief circulating medium.
The worlds financial difficulties
bulked large in our list of problems,
but there was no lack Of items of do.
mestic concern. In a session of con.
gress remarkable for it's length, two
much agitated and frequently fought.
over questions were forced to a con.
clusion. The tariff was revised, but
its enactment, by the way, was coin
cident with a shrinkage instead of the
predicted enlargement in our import
trade, and co.incidently an income tax
law was put in operation for the first
time since the civil was period. The
currency measure, designed to take
the place of an outworn and often dis.
credited system. also became a law.
The Union Paciio-Southern Pacific
railway merger was dissolved, and
terms were agreed upon between the
telegraph and telephone interests and
the country's Jaw officers without
the aid of a suit, thus pointing the
way to an ending of the ten.year
period Of harrying so-called big bust.
ness through the courts.
Despite, however, the numerous
drawbacks arising from money al
city and credit strain, the discussion