The Washington herald., 1915-01-04

sure to occur from the paralyzing effect
of the European war on this country for
the past five months. 1t is teaching the
wasteful and extravagant people of the
United States some most beneficent les
sons. l quite believe that people learn
from adversely better than from any
other experience. That refers closely and
distinctly to business experience.
There is a strong dividing line at this
time between the North and the South
commercially speaking Tho South is
still suffering from paralysis on account
of cotton, which is still moving some
what slowly. sluggishly. and selling at
very low price-sO that business in that
section is practically nil. On the other
hand, in the North the depressing effect
Of the European war upon every form
Of industry-which commenced about
August lis wearing away gradually and
in a healthy manner. Slowly Industrial
life is adjusting itself to entirely new
conditions, and the recovery from the
shock is clearly visible on all sides. Most
merchants have been more or less uu-
easy and somewhat frightened. The re-
suit is much more conservative method
of business-shOrter credits, more stren-
uOus efforts to collect and a disposition
to buy in small quantities, so as to
never overload and have an unneccssar-
merchandise.
Each month we see n slight improve
ment or uplift in trade in those sections
which do not depend upon cotton solely.
Merchants realize more than ever the
pressing and urgent necessity for col
leCting their accounts and insisting upon
a greater degree OF promptness in pay
ment.
So much for the business situation at
present. and now for the outlook for
the first part of the coming year. II
looks to me quite prOmising-althOugh
unquestiOnably the new year will start
of slowly. In a certain sense you might
call it a SLOW and careful start. The
basis, however, for business is fine. our
crops for 1914 in general are above the
ten-year average, and but for tho slump
In the price of cotton would show a
greater money value than ever before.
We expect a great Improvement in
trade by reason of the ; per cent ad-
vance in freight rates The effect will
be both psychological, practical and
financial 1t clears away cloud OF de-
preston which was on tho minds of the
people to a degree that WAS most Oppres-
revenue with which TO render better
service TO the public and cause con-
fdence in railroad securities.
Take it all in all l look for business
to be fairly good for the first quarter
or the first half of the coming year. and
very good later, unless something unfore-
seen occurs to change the outlook as it
presents itself TO my view at this writ
ing.
Collections Much Better.
D. Eiseman. President Rice-Stix Dry
Goods Company. st. Louis. says:
Present business conditions are
slightly improved over what they were
during the first few months following
the outbreak of the European war
While business in the cotton States
is still running short of last year, our
business in the West shows a consid-
cradle increase. Collections in the
South are much better than we antiCi-
pated and. with better facilities for
the expectation of cotton into Ger
many and other foreign countries, the
Southern merchants will soon be able
to take care Of all demands made upon
them.
Alfred Grunsfeld. of GrunsfeId Broth
ers. importers and jobbers, Albuquerque
says:
In our three principal industries
stock raising, agriculture. and mining
the livestock men have had a very
prosperous year; agricultural results
were fair, and mining is nearly at
standstill. Indications are for the
same status this year in these in
dustries.
All in all, the year has averaged very
fair in business way. and the out
look is for an equally good year in
1915. Still. confidence in future pros
perity is not strong: and notwithstand-
ing the fact that some of the features
of this administration are highly ap-
proved, there is a feeling of uneasiness
among business men which l think can
be allayed only by a Republican ma
tiOnal administration.
Expects Healthy Spring Trade.
\ Sanger, of Sanger Brothers. dry
goods, Dallas, looks for a restricted but
healthy spring trade.
The situation is improving. Texas has
suffered from the effect of the low price
of cotton and absence of an active de
mand. Much of the staple is still in the
hands of the farmers.
Sooner or later the cotton will come
into the market, so We may look for a
change for the better. in the shape of
and the sale of merchandise.
My fOTty-twO years business career in
Texas has taught me to feel that moth
ing can happen TO bring about entire
failure. Our State is so large that if one
part of it fails to make good. the other
parts work out so as TO bring about a
general average.
The strongly advocated diversification
of crops for the future is being follow
ed by the farmers over the whole State.
so much so that we can safely say that
Texas will do he part toward reducing
the surplus of cotton.
We look for a restricted but healthy
spring season, due to the general dis
position to economize, and to the dis
posal of cotton still in the hands of the
producer, who has of late supplied him
self and family very meagerly, reserv-
ing his means for the future, after real
izing on crops now stored up.
Frank Kell, of Kemp & Kell, grain and
general merchandise, Wichita Falls, Tex, |
says:
Business conditions have much imprOv- !
ed in the Southwest, the Improvement |
seeming to begin with the opening of the |
Federal reserve banks.
While so far the reserve bank in our !
district has had no great demand for !
its funds up to the present time having /
loaned out less than $1.OOGOOO throughout !
the district, at the same time it appears !
that the knowledge that the bank was ]
in position to distribute a large sum II |
the necessity appeared seems to have
created feeling of security which has /
largely restored confidence.
Cotton, which is the principal farm
product of the Southwest, has materially |
advanced in price, which has made the |
public look upon this commodity with a !
more friendly feeling: and as conse- |
quence the growers are inclined to hold !
their product and not attempt to dump |
Il on the market. Investors are inclined !