The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-01-08
STARTING THE NEW YEAR.

1.-The new year is making a fair
start, considering the many besetting
uncertainties which it presents" says
Henry CIews in his Financial Review.
REIMBURSEMENT is the one word which
describes both present and future. In
a business sense the first factor in re-
adjustment is deflation. Prices and
credit were unduly inflated as a re-
suit of war, and now that peace has
come the current has turned and is
running in the opposite direction. In
commodities reaction has already
commenced, and not a few staple
commodities are Enthusiastically on the
downward path. Now that the gov
eminent has released its control of
the markets natural influences are al
ready exercising their sway. The
movement is not orderly because the
sudden withdrawal of government
control left many Of the markets in
q confused condition. They had lit
orally been put to sleep by regulation,
and are somewhat slow about waking
up to their restored freedom"
1t is surprise to many that in spite
ksts well supplied, tho scarcity was
anticipated in many quarters. The
government holds vast stocks of many
articles which it must dispose of, tho
the authorities announce that this will
be done gradually and without dump
ing"
In nearly all essential raw materials
there is plenty for Immediate needs.
No scarcity of food is in sight. There
is q larger number of cattle in the
country than a year ago. Grain is
fairly plentiful, and winter wheat
promises a huge crop. There is plenty
of cotton. plenty of leather, plenty of
oil, plenty of steel. and so on. No
anxiety need be felt on this score.
More concern may be felt regarding
the large supplies of various commodi-
ties in storage at high prices.
Bankers look at this factor with
more or less caution, continues Mr..
Clews, and the desirability of at least
partially debating credit promises to
lead to more or less liquidation. In
brief, the tendency of commodities
may be downward for some time to
come, and during the next three
months it is quite reasonable to ex-
pect a shrinkage in both commodities
and credit. While this may temper
arily restrain trade and induce some
hesitancy, it will eventually stimulate
buying and aid in the revival of en-
terprise, postponed because of high
prices.
About the only scarcity to be noted,
he declares, is in labor. The return
partial relief in the labor situation,
but jobs are plenty and wages are
likely to be maintained for the present
in view of the high cost of living.
Quoting the same authority: In
some sections of the country a high
degree of prosperity is assured for a
considerable period ahead. The wheat
growers especially have a wonderful
future. The government has agreed
to pay $2.26 per bushel at Chicago
for the next two crops. This is high
ly profitable price, and farmers may
be depended upon to grow every pos
sible bushe1.
The farmer will roll in prosperity.
stimulating business in his section.
The cotton planter is also getting big
fprices for his product, and will en-
large the product to meet the revival
| OF foreign demand. AS nearly all
agricultural products are enjoying a
high margin of profit, the farming
classes generally will be prosperous.
The same applies to industrial centers.
where wages are high and business
active. Enterprise should show some
revival when spring arrives and con-
struction is renewed.