The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-09-02
THE STATE OF BUSINESS.


On the first of each month it is
the custom of a number of big finan
ciaI concerns to take stock of the
business situation. One of the most
comprehensive reports appearing at
this date is that of the National City
bank of Chicago.
There has never been strike
year." says the bank, when the coun--
| try has given SO remarkable an ex
hibition of basic strength as the
present situation disoloses. This has
been notably the case with the rail-
roads entering Chicago. In the third
week of August the Chicago, Milwau-
kee & st. Paul showed an increase in
the movement of all freight over the
year before of IT per cent, the Illinois
Central / per cent and the Atchison,
Topeka & Santa Fe IS per cent.
These gains were largely in merchan-
disc and miscellaneous freight and
emphasized the extraordinary show
ing made by the principal railroads
in July, when rs per cent increase
in car loadings was reported over the
same month of last year, reaching a
volume very near the high record
touched in August, 1920.
ut is remarkable" the bank points
out. that the roads were able to
handle such a volume of business in
view Of the disturbance caused by the
strike of shopmen, the tie-up of all
anthracite mines and the serious dis
organization of the bituminous coal
industry. Under the circumstances it
is apparent that railroad equipmen.
will be subjected to an extraordinary
strain this autumn, as a consequence
of the immense offerings of freight
held up by the strikes and the largely
increased buying power of the coun-
turaI prosperity"
That the investing public is con-
WINGED that better times are ahead,
the bank continues, has been empha-
sized by the abiding strength of the
securities markets in the face of the
most serious labor disturbances to
which the country has been exposed
since the outbreak of the world war
eight years ago. High-grade bonds
year began of more than per cent
Judging by what has happened in the
past, such a movement in a year of
magnificent crop promises, indicates
widespread belief that underlying
conditions are sound and that the re-
turn of genuine prosperity may be
counted upon.
Postal receipts in July were the
largest ever reported in that month.
The July gain over the previous year
amounted to 11.6 per cent. This with
the increase in bank clearings pro-
vides q basis for the estimate that the
volume of business today for the en-
tire country il fully IL per cent
greater than last year..
In conclusion the banks bulletin
says:
Production costs are being gradual
ly lowered and indications are that
crops this year will be harvested at an
average cost considerably below that
of a year ago. The strike hazard has
proved very costly, as both employers
and workers have sustained immense
losses which will figure largely in the
final accounting of,work not done and
equipment unused. In recent years
strikes have averaged more than
$500 a year and while the majority
have been small and incensequential,
altogether they represent an economic
waste of immense proportions.
The nation will gain an immense
amount of new wealth from the har-
vest now under way. On the basis
of the governments official August
figures the most important crops this
year will represent an aggregate val
uation of more than $7,134,654,
as compared with an aggregate valua-
ton represented by the same crops
last year of $5,935,861,O The in |
dicatioNs are that this apparent gain
of more than $1,000. 000, 900 in crop
values this year will be materially in |
creased when the final figures are
available and the country's harvest
has been completed. This represents
real wealth and brings to the great
agricultural states a heavily increased
buying power as compared with a |
year ago. The most astonishing gain |
in crop values has been the apparent |
increase IN the value of the cotton |
crop from $392, 100000 in the closing
days of August, 1921, to S1,179,9OO,- |
900 on the basis of last months Valu- |
alton. 1t is fortunate for the country |
that the crop -ituation has improved |
so much within a year, because Ahere
is likely to be an enormous foreign |
demand for whatever production we
have to spare. This largely increased
prosperity of the farming classes will |
be of direct benefit in enlarging the |
country's purchasing power.