The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-02-23

kClews, the New York banker, In MS
current review OF the conditions that
prevail in the world OF trade ana
finance; and he continues: Last
week sterling exchange broke to 4.7S.
the lowest figure recorded. A sharp
recovery followed upon rumors that
large foreign. government credits
were to be established on this side;
but the crisis in exchange necessitated
fresh adjustment to war conditions.
which are now being more keenly felt
than at any time since the struggle
began. Our foreign trade II being
conducted under very abnormal and
unstable conditions. In December the
loss of imports was about $70.000,O00.
chiefly in raw silk, wool. coffee. cop
per and textiles. Exports during the
same month increased about $4,000
900 over last year. Considering the
heavy shrinkage in outward bound
cotton, copper and oil. this increase
was remarkable; being entirely due TO
extraordinary shipments of foodstuns
and war materials. The net result OF
Hecember's foreign trade was an ex-
cess Of $13O,0OO,0O0 in exports. The
balance has been steadily growing dur
ing January and February: SO that it
is now estimated that the excess of ex-
ports has arisen considerably above
5000, 100000 since the beginning Of
the war. OF course the exchange
market is demoralized by such un-
usual conditions, and emergency
measures were necessary. The
great banks of Europe are unwilling
to part with their gold holdings for
obvious reasons, and it is not to our
interest to embarrass them by drawing
gold, especially as our own stock Is
more than ample for requirements.
"L o n o displays phenomenal
financial strength. not only in its abil-
ity to finance Britain's war. but also
by it's capacity to render financial as
sistance to the allies. Under the cir
cumstances the most rational relief to
the exchange crisis suggested is the
establishment Of big credits in this
market for Great Britain. France. or
any of the allies whose credit may be
satisfactory. The belligerents will
continue to want foodstuffs and war
materials, and we are fortunately in a
strong enough position to easily give
the credit necessary on such purchases
until more normal conditions are once
again in sight. For US at least 1t
would be far better financing to grant
the needed credit, than to force gold
or security imports in payment at this
time.
General business is again marking
time. The spirit Of confidence which
began to develop after the fall cleo
lions is still maintained, but SO far as
positive action is concerned, progress
is exceedingly slow. War imposes
strong restraints. The volume of
business shows only slight gains. In
dustry is somewhat more active, but
there is still room for large degree
of improvement. Orders are being
placed with more freedom by the rail-
roads forssteel products, and to this
extent improvement can be reported
in the great basic steel industry, all
of which is at least encouraging and
the belief in a permanent
turn Of the tide. The building trade
also shows partial signs Of recovery,
the easier conditions OF the money
market and the low price of many
raw materials serving to somewhat
stimulate constructive operations. The
OOSL PROSPEROUS 9CCtAOHS VI IAAC COuA-
try continue to be the agricultural dis
tricts, where the good harvests Of last
year and the high prices obtained for
agricultural products are making GER
tain regions exceedingly prosperous.
1t is quite natural that the communi-
ties and industries dependent upon
should share this prosper
ity. The result is that the country's
trade as a whole is in a spotty and
somewhat confused condition. Some
interests are OF course also profiting
from the war. Nevertheless. these or
ders when all combined will constitute
but q small fraction of our total do
nestle and foreign trade. Bank clear
ings are still running IL per cent to
s per cent below last year. Idle cars
show a large increase compared with
November. Railroad earnings are un-
satisfactory. In December the de-
crease on the roads reporting was 10
per cent, and in January their earn
ings showed practically no improve
ment, but as the benefits of the recent
concessions in rates begin to appear,
better results should follow.
There Is one fundamental factor
upon which to build confidence; that
Is there will be a good demand for our
food products for months to come,
war or no war. We have plenty to
spare for export from the crops Of
1914; and all indications point to a
large acreage in 1915. Europe it is
certain will raise small crops next
year even if the war terminates earlier
than expected. For many reasons
European soil cannot be adequately
titled this year and it will be years be-
fore the devastated districts can fully
recuperate. We may be sure therefore
Of profitable prices for our surplus
food products for some time to come.
Additional reasOns for confidence ara