The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-07-13
AN INCIPIENT BOOM.


Despite deplorabIe conditions abroad
unemployment in Great Britain,
financial disorder in Germany, politi
cal intrigue in France, ruin in Russia
and arrangement of international
trade OBSERVATION-DISCLOSURES these ex-
traordinary drawbacks, the prevailing
spirit in the United States is one Of
growing optimism, declares Henry
Clews in his Financial Review. This
is based partly. he says. on the well
founded belief that world conditions
are in reality improving, and that re-
construction in the war-torn nations
of Europe is slowly but surely pro-
crossing. and must continue to pro-
gress.
At home, he points out, the symp-
toms are much more encouraging
Labor is less intransigent, trade is ex-
banding in volume, railroad traffic
shows considerable Improvement,
standard industries are increasing
their outputs, values are rising, money
is easy, the crop outlook good and the
banking situation exceptionally strong.
The one great danger in the bust
general initiation and too rapid a rise
in values; a hazard that is well under
stood in banking circles and will be
guarded against by all prudent bust
ness men,"
The monthly report of the federal
reserve board relative to general bust
ness conditions is one of the most OPP
timistic issued for many months past
by that organization. 1t shows an in
crease in some branches of metal pro-
duction of rs per cent since a year
ago, and a very marked increase in
wholesale and retail trade everywhere
except in those lines which are af-
fected by seasonal recession. The
basic industries of every kind. includ-
ing all classes of iron and steel. are
exhibiting a pronounced power of
growth, while the manufacturing
lines. which have been inclined to
suffer from reaction or impairment
of activity ever since the downward
movement of business began in 1920.
are at length definitely returning TO
normal level of production.
The board shows that the agricuI-
tural outlook is particularly encour-
aging, while liquidation of frozen loans
in the west and south has, with the
opening of July, proceeded hopefully
Demand for labor in the farming dis
tricts is approaching its peak, and I'M
employment is now, in almost all Sec
tions, distinctly below normal levels,
except in those industries in which
strikes or strike threats combined to
keep men away from employment op-
portunities. There is a general i'm
provement in credit conditions all
over the country, which reserve banks
have reported as one of the most IA
vorable indications in the outlook.
One of the striking things men
toned by the board. and confirmed
by various other business reporting
agencies. is the decisive advance in
prices. The average level of whole
sale commodity prices is now up fully
ten points since the first of May, after
a period of fully eight months during
which there was little or no change
ia the average level. One effect of
this noteworthy advance IN prices has
been greatly to stimulate many classes
of business.
The most far-sighted operators are
of the opinion that business require
ments must be contracted for in ad-
vance very shortly if the various lines
Of trade are not to find themselves
confronted with losses due to price
increases resulting from the general
upward movement. which they must
cover in order to safeguard them
selves against loss due to increased
expense of protecting their contracts.
The price advance is not confined
to the United States, but appears 10
be developing in other countries as
well. Advancing prices and increased
activity in business always go hand
in hand. 1t might be generally ad-
vantageous if the federal reserve
board do not put on the brakes so
hard as to produce another reaction.
Business has been "rearin' to co. for
long time.
If the railroad Shopmen had been