The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-04-01
HENRY CLEWS
AND BUSINESS
Analysis of Commercial Conditions as
Viewed by an Expert Who Has
Been Forecastins for
Some Time.
EFFECT OF THE FLOODS
While Serious They Should Not Affect
the Stock Market-Loss Falls
Heavily Upon Large
Corporations.

NEW YORK, April |, 1913.-It is
impossible at once to form reliable
estimate of the effects of the recent
floods. The tendency at first Is to ex-
aggerate. Conservative estimates
place the damage at between $50, 00o,.
1000 to s100,000,oO0, the larger portion
| of which will fall upon the railroads.
Ihls should not have a serious effect
upon the stock market The loss falls
upon big corporations abundantly
able to stand the temporary strain,
and cannot be compared with the San
francisco disaster In which about
about $4OO,000,000 of property was
burned, and the loss fell largely upon
insurance companies, which were
obliged to sell securities in order to
pay losses. There will be no Import
ant contingencies of that sort in this
case The commercial losses may
prove considerable from local stand
point, but the interruption Of traffic is
! OF temporary consequence The iron
trade has been somewhat hampered,
and the production of pig iron will be
curtailed for period. On the other
hand, there will be fresh demand for
constructive material, especially to
replace lost bridges. Not few in
dustrial plants will be affected by the
delay in receiving supplies of mater
1als. The disaster is one that calls
chiefly for strong sympathy and
abundant help where needed With
these and American enterprise under
difficulties. all will be quickly recover
ed and repaired saving the sad loss
of life, which could not have been
anticipated or provided against.
| A partial change for the better de-
yeloped in the early part of the week.
This had its first origin in a decided
/ improvement in financial and political
affairs abroad. The fall Of Adrianople
induced decidedly more hopeful feel
/ ing In foreign financial circles, since
that event ends the war and settles
another point of serious difficulty. An
additional factor of wide-reaching i'm
portance was the improved monetary
conditions in Europe, particularly in
Germany. The much feared crisis
Earising in Germany from excessive in
Idustrial activity and the Balkan war
has been safely provided for Much
easier conditions now prevail there,
and no serious trouble is anticipated.
The Imperial Bank of Germany has
been able to materially strengthen it.
Lower rates have prevailed for money,
and ere long it is expected that the
boarding of funds in Europe, which
seriously aggravated the situation
will be gradually released The other
great European banks have also sue
lceeded in strengthening their re-
serves, and conditions consequently
will be more favorable to financing
the new issues forthcoming after the
war Great assistance has been rem
dered by the s46,O0o,Oo0 of gold TAX
en- from the United States during the
recent outward movement. While the
bulk of this went to Germany, 1t will
now gradually find its way to other
banking centers. In a large buyer of
American securities-foreign pur-
chases being instrumental in changing
sentiment here and in offsetting the
weakening effect Of our disastrous
floods in the west
The home outlook aside from the
floods is also better. This applies
particularly to political conditions.
Mr.. Wilson has made an excellent i'm
preston thus far as president, and
the belief is growing that he will
stand not only for moderation in
tariff revision. but also in new leg
islation generally. Mr. Wilson, though
a progressive, is by no means a radi.
cal, and there are indications that he
will be able to exercise wise and
soothing influence upon congress.
What is also encouraging is the indi-
cation of waning radicalism in the
house itself. Now that the presiden-
tial election is over and the next cam
paign is nearly four years distant,
there is less occasion for spectacular
political demonstration For a period
at least the public is entitled to rest
from unreasoning political agitation.
Another very favorable indication is
the increasing prospect for banking
currency reform. Mr. Wilson is
known to be taking very serious and
intelligent interest in this subject and
is inclined to take the position that If
a satisfactory bill can be passed dur
ing the extra session of congress he
would favor movement in that di-
rection. Much depends upon the act
iyity of business men. The subject is
one which the average voter can no
more understand than he would
theorem in geometry. He must in
evitably depend upon the experienced
Judgment of others. The question
will have to be decided by those