The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-06-10

III ADA0A-S As<9k1 - - = ~ ssA>es
1.-THE stock market continues to
struggle against a number OF adverse
conditions" writes Henry Clews. the
New York banker, in his weekly
financial review, and he continues:
I'm some quarters there is a disrost-
ton to attribute the present unsatis-
factory state Of business and finance
to imainary or psychological con-
ditions. Quite possibly there is exaS-
geration in certain quarters for polit-
ical effect This is a weakness Of
which both sides are often guilty. The
facts are that business is spOtty. and
more depressed in some sections and
industries than in others Diminished
bank clearings prove this statement
conclusively. So does tina increase of
liabilities in business failures shown
for last month. The actual shrink
age in business is not large, bu. is
nevertheless larger than 1t needs be.
1t is larger in the east where manu-
featuring interests predominant and
smaller in the west where good crop
conditions are the chief factor. Bust
ness initiative in the EDS. has been
very seriously impaired. This is dem
onstrated by the fact that new cor
porations reported ip the principal
states in May were only 100000
against s172. 100000 a year ago; while
the total for the first five months of
the current year amounted to only
$428,0OO,O00, compared with $780,
100000 the previous year. The mean
ing of these figures is that capital
dare not make new ventures. very
largely because of the hostile attitude
at Washington. This In turn means
that trade is falling below its natural
volume, and that many persons are
thrown out of employment. who other
wise would be working irll time. Call
this state of mind if you will. Any
is naturally disturbed when
he finds the foundation OF his avoca-
ton being destroyed. That certainly
is state of mind with a substantial
cause behind it. So. too, there are
causes for the present psychological
of business. There is a
economic reaction, which
partly accounts for the present de-
preston. But all we'll informed men,
those who have to as
to the fact that our politicians are
very seriously aggravatins instead OF
relieving depression. Among the in
fuences which at present are deter
rent are the Investigations by the in
terstaie commerce commission: the
delay in the rate cases: the new anti
trust bills, and fresh uncertainties as
to railroad regulation and the issue of
new securities. The market has also
been under the influence Of Mexican
and a poo- government
cotton report; although in the cotton
trade the feeling prevails that the lat
ter somewhat exaggerated the fall of
in the month of May.
During the week there has, how
ever. been a disposition to take hope
full views of the future. 1t is recog-
nized that many Of the unfavorable
ed. and that the financial situation
has been materially strengthened by
persistent liquidation. The present
contraction in certain lines Of indus
try. it is felt. cannot continue indefinite
ly. Economy has n some cases been
pushed to the starvation point. Our
railroads must inevitably soon come
into the market for rails, equipment
and general replenishment, If only to
keep their plant up to necessary
standards and within the lines of
sound and safe management. Con-
traction in the steel trade upon The
present scale for any great length of
time is impossible. In other lines of
n n q a1rvn1io- nf ho
relatively light, but retrenchment has
not been so keen in every direction.
1t is in the steel and certain depart
ments of real estate business that de-
preston has been most severe The
most substantial reason. however, for
taking a more hopeful view IS the
prospect Of an enormous wheat crop,
the most optimistic estimates still
as high as 9OO,OOO,OO0 BUSH
els. compared with 760.OOO,0 900 bush
els last year. The winter wheat har-
vesting is already about to begin
Kansas and a number of other states
in the wheat belt re counting upon a
period of -.reat prosperity as result
of the wheat harvest. The promise is
also good for the oat crop and fruits
of all kinds. AS for corn. planting is
still incomplete, and it is yet too early
to form any opinion of this important
cereal. but the conditions of soil are
known to be almost universally favor
able.
Another important supporting in
fiuence is the easy condition of the
money market with prospects of CON
tinuance. Liberal gold exports have
occurred, but these have produced 10
uneasiness for the reason that we
have an abundance of the precious
metal to spare. and our own trade re-
quirements are restricted. Very soon
there will be a better supply of grain
and cotton bills. 1t is probable that
still further gold shipments may be