The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-01-12
BUSINESS MORE CONFIDENT.

The first week Of the new year has
shown no diminution of the recuper- !
alive influences observed in our pre-
vious advices." writes Henry Clews, |
the New York banker, in his current |
weekly financial review, and he goes
on: The war Is still the dominating
factor, and must SO continue until
peace is in sight No great changes
in this respect appear to be anticipat-
ed until military preparations are
energized by the approach of spring.
For the time being the contending
armies are at a deadlock. which can
only be broken by vigorous fresh in
itiative. The London Stock exchange
reopened on Monday with scarcely a
ripple. Transactions there have been
relatively unimportant owing to the
numerous restrictions still imposed.
London, however, seems to be thor
oughly adjusted to war conditions.
THE effect OF the war upon its Sc
curity markets is shown in the fact
that the total new British issues for
the year amounted to about f512, 000,-
0OO.' against f196,00O,OOO a year ago.
The figures for 1914 included the war
loan Of f332.000. 00o. but not the f77,-
100000 of treasury bills. OF the new
issues nearly fS1.000,O00 went to
British possessions, f12,0OO.0OO to
Russia, f35, 10000 to other European
countries. and 100000 to the
United States. Last year British in
vestments in the United States were
about f1S,000,O0O and the year before
f23,LOO.OOO. Outside of war loans,
the largest single field for British in
vestments continues to be railroads.
especially in India and Canada.
THE total issues Of new capital in
the principal states of this country
in 1914 amounted to $1,436, 900, 900.
compared with $1,645. 100000 for the
previous year. a decrease Of $2O9,OO0,-
600. These new issues for 1914 in
clude $e4s.0oo,o 900 for bonds. $685.
100000 for notes and 1852. 900, 600 for
stocks. The changes indicate an in
crease Of $42,000,0OO in railroad bonds
and notes, but a decrease OF $66. 0O0.-
900 in railroad stocks. In industrial
corporations there was a decline in all
issues amounting to $1O,O00,OOO in
bonds. 351, 100000 in notes and $123,-
100000 in stocks. These figures show
conclusively the depressing effect of
the continued attacks upon business
interests by the various legislatures"
1T is quite evident that at present
our industrial activities are not keep
ing pace with the natural growth Of
the country. Enterprise has been
checked. Capital is relatively idle.
and must be accommodating in spite of
diminished profits in many lines of
industries. AS confidence is restored
enterprise will revive, capital will
come out of hiding and the investment
situation should gradually improve.
Although the usual January invest
ment demand has not yet materialized
there are indications of coming re-
| vival. One mark of recovery is the
important new issues announced this
week by the st. Paul and the Penn
| sylvania railroad systems. Both Of
these organizations are about to put
out important flotations, which they
would not be apt to offer unless in
their opinion the situation was favor
able. Another indication of reviving
confidence is the increasing orders
placed by the railroads for rails, cars
and other materials. This changed
attAtuOC OA PdAt VI IdllIOdO lldAAA8CAS
is no doubt largely due to the conces-
sions recently granted by the Inter-
state Commerce Commission, and the
belief that that body has moderated
| it's long continued attitude of hostility
AS railroad earnings continue very
unsatisfactory. this display of conf
dence on the part of railroad mana
gers is doubly assuring. So far as the
steel industry is concerned the volume
Of orders is still very small and prices
are so low that profits must be NOM
inal. Nevertheless, the disposition of
the railroads. the largest and shrewd-
est buyers of STEEL to enter the market
at this time IS a positive exhibition of
confidence in the future.
Money continues very easy to good
borrowers, and funds are now return
ing from the interior with increased
freedom. There is a continued surplus
Of currency, which, however, is being
slowly counteracted by retirement of
the emergency issue under the AID
rich-Vreeland act. A further break
in foreign exchange to the lowest fig
ure since 1907 was also q favorable
Indication, being chiefly due to a larg-
er supply of foodstuffs and cotton
which are now going outward in large
quantities. A sharp advance occurred
in wheat owing to foreign buying.
This means increasing profits for the
western farmer and also serves to in
crease the excess Of exports over i'm
ports which for the month of Deem
Der are expected to reach about $780,
600. 900. The situation, therefore, is
in favor of gold imports rather than
exports, and the shipment this week
to Paris must be regarded as a spec
ial transaction. Gold might come