The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1914-01-03

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| it's rather than that of acute high
| rates, which indeed were rather con-
| spcuously absent. Much needed sup
| port To trade and finance was given at
a critical time, early in June, by the
| secretary fthe treasury's announce
| nCni as to the possible use Of govern
mcnt money i'm the banks and IN the
surpius producing areas. The
then good crop outlook was of course
| helpful but with The realization of
The druushts damage i'm the west and
| southwest in August and September
business in large lines Quilted down.
| Tariff changes, agitated or realized
were brake on new production in
| the autumn, and the scarcity of money
! conspired To make new enterprise eau
| tiouc. Industrial output, while large
| early. showed repression later and
sagged. though the impetus given pro-
auction early made in many cases for
| record production.
Failures.
The years failure record was a full
one. exceeding that FOR 1912 by - per
| cent and that for 1908 10y per cent,
while liabilities increased SO per cent
over W., though falling per cent
| below 1905. Half of the excess IN liza
bilities over 1912 was explained by
| unsafe banking, a good part of the
balance being contributed by large
dealers in rubber, in automobile, iron
ana lumber manufacturing and coal
mining. Failures in the first half OF
the year were below those of 1912, and
the liabilities were only slightly larger
but the third quarter saw the balance
tip against the current year, especially
m liabilities, which We're swcled by
the banking troubles mentioned, and
The last quarters failures aud iiabili-
ties were the largest Tor two years.
Throughout the entire year 1913, as
in 1912, the largest number of small
failures called attention anew to the
fact that the business community has
been greatly diluted of late years In
the ten years from 1904 to 1913. in
elusive. the number in business in
creased by $4,000 per year, or by 80
per cent, whereas the increase in pop
ulation was not at much over half this
rate. This caused a rise in the per-
centage failing each year. and raised
anew the question whether the heavy
increase in the number of traders was
justified by the volume of business
done and the known fact that profits
over that time were complained of.
Looking Forward.
The liquidation in the stock mar
ket in 1913 was apparently thorough
without being panicky Trade and in
dustry in turn showed symptoms OF
an orderly retreat rather than of a
prccipitate flight, and since the i'm
proved feeling noted in the latter
weeks of 1913 set in. less is heard of
rumors of business troubles in this
and other cities. The complete his
tory OF the 1902 03-O4 collapse and
quick revival, some of whose earlier
happenings were closely paralleled in
1913. viii repay pcrusal because hold /
ing some lessons and indeed some en- |
courugcmcnts. 1t is generally con-
coded that while the entry of industry |
into the stock market in a capitalized |
form has made il more sensitive to |
unfavorablc happenings, il has also
made it quicker to respond later to
improving influences. The best judg- |
mcnt seems to support the view that
money, the great dcsidcratum i'm fin
ance and trade, will be both cheaper |
ana easier To obtain in 1914 than in |
1913. The passage of the currency |
bill is expected to be an aid IN this |
respect, whatever may be thought OF |
ultimate effects of the possible inila- |
ton feature of the new measure, which |
has supplanted a seriously defective |
system. OF course. any ill-considercd |
rise like that of 1895, with its after
math of deep depression, is 10 be |
avoided and the possibilities of Eu-
rope endeavoring To further liquidate
its burden III American markets are
to be considered in this connection.
though our immense credit balance
may help US in this respect Money,
MAZE trade and industry in 1914, and |
the absence of burdensome stocks,
owing to long continued hand-to
mouth buying. should he helpful. At
will not be forgotten that many crops I
were short i'm 1918, and prices. partic-
ularly of food, were high, which may
have helped agriculture as whole,
though no country ever made much
money out of it's own crop shortages.
AS to 1914 crop conditions, II may be
said that said conditions are favorable
and winter wheat is i'm excellent shape.
The matter of possible railway rate
advances presses for early solution.
An Of the advances asked for I'm pas
wears would have been insufficient to
save some badly managed enterprises
from the effects of their own sins, but
the Justice. indeed the absolute neces-
sity. of allowing the railroads to re-
coup themselves for high cost of oper-
alton can hardly be denied. In this
matter the auguries at the outset of
the wear are thought favorable. and
If they prove SO should have an i'm
portant effect in stimulating demand
for a variety of articles which move
through the marts of trade. Whether
n .gtnA a