The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-06-13
THE BUSINESS SITUATION.

/
and confidence in the future has not
weakened. Bank clearings in manu-
featuring districts of the east are 40
to so per cent higher than a year ago,
it goes on, and in the cities more di-
rectly related to the agricultural inter-
est 20 to 40 per cent. Railway traffic
could hardly be heavier with present
facilities. The congestion is reduced
to an extent that permits of a fairly
expeditions movement of consign-
ments, but there is still much unloaded
freight at the terminals and a short
age of cars.
| The fundamental conditions. which
include full employment of the people,
and an enormous production of COM
modities from original sources, were
never better. Agricultural products
and mineral products never before
| brought prices that were so remuner-
ative to the producers, and the nun
Der of people directly engaged in these
| industries is very large The lumber
industry is also prosperous. although
not to the extraordinary degree en-
joyed by agriculture and mining. Man
ufacturing in practically all lines is
working up to the limit of the avail
able labor supply. Judge Gary of
the United States steel corporation,
last week described conditions in the
steel industry by saying that the
orders being booked still more than
covered the current production, and
that business for fully a year ahead
was in sight.
| Building operations on large scale
are held in check by the high cost of
materials, but there has been enough
work of an emergency character to
provide general employment in the
building trades, and a large amount
of work is in contemplation and will
be released by a decline in prices.
There is a. calmer, more conservative
tone in all quarters. without any real
let-up of activity. The labor troubles
of May 1 have been adjusted for the
most part, wage advances being nu-
merous. In the machine building
trades, at Pittsburg anr through the
Ohio valley, there has been serious
controversy over the eight hour day,
which the manufacturers vigorously
opposed as unnecessarily restricting
the output when an unusual volume of
business was in sight. They appear
to have defeated the movement
1t is evident that the whole country
is doing business with a full appre-
citation of the fact that conditions are
extraordinary and subject to change,
and yet with a large degree of conf
dence in the future. There has been
overbuying prompted by rising prices
and fear of inability to get goods later,
and this in some degree explains the
unprecedented demand. Some of
these purchases have come back upon
the market, and more may do SO as
the time to take deliveries ap-
, proaches, but the consumption OF all
staple articles of comfort is on a scale
never equaled before. In lines in
which production is being increased to
take the place of foreign supplies,
prices are tending downward, and in
some lines in which high prices have
ruled upon the public market regular
customers are being served at but lit
| tie above normal figures.
There is a general recognition Of
the probability that. readjustment OF
prices will have to be made at lower
! level after the war is over, and nobody
intends to enter that period with
heavy stocks if he can help it. II
stocks are moderate it is believed that
the readjustment will not be hard tc
make, for nobody expects prices te
fall below the pre-war level, or even
quite to it. The stocks of staple goods
are low all over the world, and there
can be no long sustained cessation OF
: buying. In this country it is evident
that a large amount of construction
work is being delayed by the high
prices. The railways are still spend
ing as little as possible. for either
equipment or development, owing to
! the scarcity of labor and high price Of
steel, but they are assured of gooC
| earnings for a considerable period
r and must eventually disburse large
sums to make good the wear and tea,
of this heavy traffic and to enlarge
their facilities to meet the growing re-
quirements.
The crop season has been a little
backward, but the soil has taken in 6
= good amount of moisture, which i.
- the most important factor in a crop
:, The acreage of whear Is reduced. bu
4 the country has carried over larg,
SlOShS' anu What lAAS Adoc lii1HhS U
| the prospects for the wheat suppl,
may be judged by the fact that tn,
price is 80 cents a bushel below wha
it was in the latter part of January
n The corn acreage will be large, anS
} there is an evident determination
among. farmers to get back to NOR,
cattle and hogs on the farms. Unfor
tunately, the stock of sheep is steadil,
e dwindling, as the large ranches ar
4 broken up. The cotton acreage is