The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-01-05

iISL tILle since the Civil war peFiOu.
The currency measure, designed to
take the place of an outworn and often
d~iscredited system, also became a
law. The Union Pacific Southern
Pacific railway merger was dissolved,
and terms were agreed upon between
the telegraph and telephone interests
and tn country's Law offers without
tn aid of a suit, thus pointing the way
to an ending of the ten-year period
of marrying so-called big business
though the couts.
Despite, however, the numerous
drawbacks arising from money search
tv n credit strain, the discussion of
new economic measures in congress-,
the continued agitation of new and
old laws affecting the rights of corn-
bination, the lowering OF the tariff, the
unequal, in some cases deficient, yields
of staple crops. the very high levels of
prices of commodities, numerous fail
ures, heavy liabilities and hand-to-
mouth buying of a piece with that
noted each year since 1907, many new
records Of trade volume and industrial
output were set up. The backlog of
untitled orders on hand, which were
at their maximum at the opening Of
the year, tended to decline as the
spring advanced. Money scarcity was
in evidence from early In the year n
ward to its close, seeking the form Of
close scrutiny of credits rather than
that OF acute high rates, which indeed
were rather c~onspicuously absent.
Much needed support to trade ana
finance was given at a critical time,
early in June, by the secretary Of he
ltreasury's announcement as to the
possible use of emergency currency
and the placing Of government money
lin the banks in the surplus crop-pro-
duclng areas. The then good crop out
look was of course helpful. but with
the realization of the drouth's damage
l n the west n southwest in August
and September, business in large lines
lqufeted down. Tariff changes, agitat-
LED or realized, were q brake on new
production in the autumn, and the
scarcity of money %conspired to make
new enterprise cautious. Industrial
preston later and sagged, though the
impetus given production early made
IN many cases for record production.
n years failure record was
a full one, exceeding that for 1912 by
AZ per cent and that of 1908 by 8
per cent, while liabilities increased
50 per cent below 1908. Half of the
excess IN liabilities over 1912 was ex-
Planned by unsafe banking. a good
part Of the balance being contribut-
ed by large dealers in rubber, in auto
mobile, iron n lumber manufacture
ing n coal mining. Failures in the
flrst half of the year were below those
of 1912, n the liabilities were only
slightly larger, but the third quarter
saw the balance tip against the cur
rent year, especially in liabilities.
whlcn were swel1ed by the banking
trouole mentioned, and the last a
Lers iaiiures n liabilities were the
largest Tor two years. Throughout
the entire year 1913, as in 1912 the
large number OF small failures called
attention anew to the fact that tba
business community has been greatly
diluted of late years. In the ten Years
from 1904 to 1913, inclusive, the num-
Der IN business Increased by $4,000
per year. or by 35 per cent, whereas
the increase in population was not at
much over half this rate. This caus-
ed a rise in the percentage failing
each year, and raised anew the n11ess
ton whether the heavy increase in
the umbe of traders was justified
ny the volume of business done and
the known fact that profits over that
time were complained of.
n liquidation in the stock market
in 1913 was apparently thorough with
out being panicky. Trade-and indus
try IN turn showed symptoms Of an
orderly retreat rather than of a pre-
cipitate flight, and since the improy-
ed 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 history Of the
l902-O3-O4 collapse and quick revival,
some of whose earlier happenings
We're closely paralelled in 1918, will re-
pay perusal because holding some les
sons and indeed some announcements.
It is generally conceded that while the
entry of industry into the stock mar
ket in a capitalized form has mada 1t
more sensitive to nfayorabl han
penings, 1T has also made it quicker to
respond later to improving influences.
The best Judgment seems to SUPPORT
the view that money, the great desid-
eratum in finance and trade. will be
both cheaper and easier to obtain in
1914 than in 1913. The passage of the
currency bill is expected to be an aid
in this respects whatever ma be
thought of ultimate effects OF the i,os-
sible imitation feature of the new meas
ure, which has supplanted a seriously
defective system. or course, any III
considered rise like that of 1895 with
its aftermath OF deep depression. iii Ia
be avoided And the possibilities a.
Europe aendRaYorifg to further liu,,i-
date its burdens i~nssA1neriean markets
are to be ccnsileFed1gin this conneo-
ltion, though our immense credit bal
ance. may help us infssthis respect.
Money. however, should be plenty for
l1sgitiYnats .HrS5e and industry In 1914.
and the absefice OF burdensorae stocks.
lowing to long continued hand-to-
mouth buying, should be helpful. 1T
4 will nnf ha fnrratfay4 fl4at 7rfsanx nrn,r