The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-01-04
CONDTTONs AT HOMIE.

Home conditions are distinctly
better than a year ago." writes Henry
Clews. the New York banker, in the
course of his Annual Review, and he
continues: "Of much encouragement
is the shifting attitude of the govern
ment towards big business from one
of open hostility to one of friendly
regulation. Harsh Investigations and
prosecutions have ceased. So also
has corporation batting, because it no
longer pays politically, and hurts in
dustrially. The new federal commits
sion is at work endeavoring to tackle
the stupendous job of regulating the
commercial affairs of the United
States in the spirit of fair play Its
great difficulty will be to decide what
is and what is not fair competition
Many of the old political issues which
throttled enterprise for years have
ceased to exist, and it is years since
business had so little to fear from I'M
intelligent hostility as now. While this
change is partly due to recognition of
the injury to capital and labor alike
from such hostile policies, the war was
undoubtedly a powerful factor in this
evolution because it diverted attention
ton upon the new. In place of tariff
banking and other problems we now
have such questions as preparedness,
revenue, shipping, etc, all of which
can be traced directly to the Euro
pean struggle. The coming year, 1916,
will be a presidential year and conse-
quently a year of much talk and lit
tie action in the legislature, but in
spite Of this the political outlook so
far as business is concerned is less
disturbing than a year ago. The
commercial outlook is also encourag-
ing. The year 1915 proved a year of
big crops; the largest and most prof
table on record. The long era of
prosperity which American farmers
have enjoyed is assured for another
season. Even in the South. where the
output of cotton showed a large de-
crease, growers are likely to secure a
larger value through the nearly
doubling of prices. Interior merchants
are consequently anticipating good
business for at least the first half. of
the new year. and have had to buy
freely for the replenishment of empty
shelves In the East, business has
been materially aided by marvellous
activity in the steel industry melted
at first by war orders, but intensified
and prolonged by what is far more
substantial, an awakened home con-
sumption. Many important buyers,
especially the railroads, had postponed
orders as a matter of economy. With
the turn of the tide, this accumula-
ton of business came out with a rush:
"a &c
d-breaking activity in the steel
trade. which thus preserves its repu-
tation as a reliable business barom-
eter. American railroads have also
benefited by these conditions; gross
and net earnings for the last quarter
OF 1915 showing a most pronounced
and encouraging turn for the better.
In the Industrial world the revival has
been more marked than elsewhere.
The causes were largely those just
named, but the war has been a pow
erful stimulant in this particular field
The financial situation success
fully adjusted itself to war conditions;
our banks are sound, and there has
been a phenomenal expansion in loans
without imperiling the limits of safety,
thanks to the successful working of
the new banking system and the flood
of gold pouring in from Europe,
amounting in the last twelve months
to about S45O,00O.0OO. Money is plen-
tiful and well distributed, as shown by
activity in the retail stores on the one
hand and a good investment demand
on the other. The greatest danger to
American prosperity at this time is
excessive initiation arising from the
plethora of funds and the war, and a
special obligation is placed upon our
bankers to restrain such tendencies. 1t
is estimated that during the year we