The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-07-22
cLEws' FINANCIAL REVIEW.


decline within the past eleven months
of eighteen to twenty points in the
railroad and Industrial shares. This
| is not only equivalent to but is really
| In itself slow panic and the only
thing approaching the enormous ag-
}gregate shrinkage in values was the
panic OF 1907, when the losses were
estimated at over three thousand mil
llions Of dollars. Considering the large
increase in the volume of securities
during the interval, 1t is probable that
the recent shrinkage has been even
greater than this sum.
The key Ito whatever improvement
there may have been in the situation
is relaxation of the monetary ten
sion. Money is still very firm, and
likely to SO continue for some time
to come. although the situation is less
tense than formerly, and the chance
of a crisis during the autumn when the
crop and trade requirements are at a
maximum is becoming more and more
remote. The situation abroad is also
yisibly improving, owing to a bet
tier Balkan outlook There now az
pears to be no fear of any complica-
lions between the great powers, and
the disturbances In the Balkans have
simmered down ito mere squabble
among the contestants over petty diff
ferences and division of the spoils.
Europe, however, is still struggling
under the load of militarism Ger
many has built up big war chest.
and France seems bent on doing like
wise. Much Of the recent 100000
of gold exported to Paris has gone
abroad, not as legitimate exchange
transaction, but as special move
movement. We have been shipping
gold to Paris chiefly as a commodity,
and France has paid the premium.
Unfortunately our supply of bar gold
lis about exhausted, and American
eagles which are used in our bank re-
serves have been shipped instead.
This is not desirable. The Bank of
England made strong showing this
week, and nearly all foreign financial
advices are of a favorable nature, al
though London exhibits some uneasi-
ness over the Canadian situation.
The business situation at home is
Sound and promising. Much now de-
Ponds upon the crops. Each week
|renders the prospect of good harv-
est more certain, and the period is
not far distant u-l,ap tho orai-, oronc
will be entirely beyond danger. Since
7 the July government report the con-
dition of wheat and corn has further
improved, and the outlook is for d
better corn crop and liberal wheat
crop in spite of the decrease reported
in spring wheat 1t is now believed
that the tariff bill will be passed about
september and its effects have al
ready been largely discounted The
outlook for the currency bill is still
VERY indefinite
The railroads are enormous con-
sumers of our industrial products, and
while greatly in need of supplies OF
all kinds at the present time, through
d ldCh vi SltQ1L ldtlllllcS Ll1Sy al e
forced to economic. When conf
dence returns, which is the basis OF
the extension of credits, the railroads
will come into the market to supply
their needs, and when they start to
| do SO all the avenues of trade will
then spring into active life and it will
be found that the demand in every di
rection will be greater than the sup
lply, and should nature do her part
as now indicated, great prosperity viii
again come back to our people and
nation.
/ 1t Is worth noting that our western
/ bankers and merchants show an un
iflinching optimism, which is not likel,
disaster befalls the CROPS. There has
been no important shrinkage in trade
at the west beyond very moderate
slowing down, and many Of the lead
ing merchants are anticipating goot
average fall which is quite consisten
with present crop prospects. The
policy of conservatism imposed b.
banks for the last three months Il
having beneficial results: and from tn.
4 Atlantic to the Pacific indications
multiply, showing that financial dis
orders are gradually righting them
lselves. One effect OF the restraint OF
borrowing imposed by banks will b
to induce farmers to market grain
which they have held back for highe
prices. freer grain movement woul,
mean better traffic returns for thu
railroads, and larger exports of bread
stuffs. In this connection, 1t is wortl
noting that our exports of breadstnff
lin the last fiscal year were $193, 900
1000, against s110,000,O0o a year ago
land the largest since 1908, when the.
touched $205, 000, 900, Our total amour
lof agricultural products reached il
THE last twelve months were the lara
lest on record amounting to 81 ,026, 900
1000, against S94,000,000 a year age
4 With the lower prices now curren
for agricultural products, the pros
ipontc ara for continued 1iha,~a3 nv