The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-08-18
AS THE WAR AFFECTS US.


Clews, the New York banker. in his
current weekly review Of the condi-
tions that rcvail in the world OF
trade and finance. and he continues:
THE initial shock to business has been
safely passed without grave disaster
on this side, and as a people we are
now gradually resuming such activi-
ties as can and must be carried on In
spite of the war. The strong efforts
to steady the general situation ema-
mating from leaders in the business
world are having their beneficent ef-
feet. Courage, consideration and CO.
operation are working wonders in re-
storing or readjusting trade move
ments. The most important relief
thus far obtained is the announce
ment that Great Britain has been able
to reopen transatlantic communica-
ton. with the prospect that other
avenues of sea transport may soon
be reasonably safe for commerce.
We will shortly be able to ship
our surplus wheat and cotton, for
which we need the proceeds quite as
much as Europe will need the prod
ucts There has also been consider
able relief in the foreign exchange sit
uation, although that branch of COM
merce is still badly demoralized. the
establishment of the moratorium
abroad leaves international transac-
lions in a state of dep1orable con-
fusion; but these are the exigencies OF
war and must be faced as best they
can for some time to come. F1nanciai
London has partially recovered It's
equilibrium, and the reduction OF the
Bank of England rate is decidedly
reassuring symptom. Its action also
in opening a credit agency at Ottawa
will be materially helpful both here
and abroad. The resumption Of the
London stock exchange for business.
however, is remote; the impossibility
Of closing up transactions with many
of the principal centers of Europe be-
ing a problem Of the most serious
character. There is no immediate
prospect Of opening the New York
stock exchange, but much relief will
result from the appointment Of the
committee Of five to pass on the buy
ing Of securities for cash at not less
than the closing prices OF July 80.
This will allow the completion of
many legitimate contracts. and will
prevent any Decentralization in security
values through excessive trading.
Practically it means that this market
will be sustained at about the last
prices Of the 30th of July when the
New York stock exchange closed. Ex-
tensive efforts have been made to
safeguard the money situation, and
our bankers are of course all exer-
cising unusual precautions in credit
operations. Happily this country Is in
splendid position to stand the strain
imposed by a vast European war It
is but reasonable hat we should now
place a fair estimate upon the offsets.
This country possesses an incalcu-
liable advantage since 1t is the greatest
civilized power entirely removed from
the possibility OF being drawn into the
maelstrom. Europe and the rest Of
the commercial world are looking to
the United States as never before.
While Europe cannot expect the
United States to finance the war, we
are quite likely to give important aid
in the matter of extending credit. and
relieving foreign bankers of their
usual seasonal financing of American
products. We may even find it to our
advantage to aid finance the war If
such funds are used to pay for our
wheat, cotton. etc. Our surplus food
supplies will be sold to Europe at q
handsome profit. The world may con-
sumo less cotton next year, but Lam
cashire is hungry for the fleecy staple
that must be had in order to keep her
mills going and her export markets
satisfied with cotton fabrics. Germany
will unfortunately suffer a tremendous
loss in export trade, which neither
Great Britain nor France will be able
to make good. Some Of the articles
which Germany produces for export,
of course, cannot be duplicated; but
there would seem to be no reason why
many Of the big orders which she re-
ceives for steel products should not
come to the United States, especially
as Great Britain will not be able to
satisfy such demands Germany
| moreover, has an immense overseas
commerce aggregating about $4,5OO,-
100000. which will be partially lost
| and may be permanently Impaired
German vessels have carried on an
enormous transatlantic trade with
both North and South America and
also with the far east. very con-
siderable portion of this might be won
by the United States did we possess ar
! adequate merchant marine. The time
is highly propitious for such a move
ment. Prompt and intelligent 1egisla-
tive action is needed. If we are tc
regain our former prestige upon the
high seas we must be able to build
and operate ships as cheaply as oul
| competitors. Unless we go in on the
same basis as our rivals important
success would he very donhtf,,l Can