The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1914-11-12
FINANCIAL
SITUATION
IS BRIGHTER
fBv Henry Gle VS..

brighter almost daily In spite ..of the
heayy European war cloud. This
GEEK there has been marked progress
in clearing up the foreign exchange
stuation, and the restrictions upon
credit. foreign and domestic, are be-
ing gradually lessened. One of the
n ost striking evidences of improve
mpnt has been in the recovery Of cur
foreign trade, particularly in exports.
from the effects of war shown in the
Santember statistics. In thai month
II will be recalled our exports de-
,lioed S62, 600, 600, and oCr imports
All. 600. OOO the loss in exports being
laroely in cotton, and the loss in i'm
ports being chiefly in manufactured
products. our export trade during
the current month, and especially
during the past week, has been par
ticularly active. The increase in
raw products and war supplies has
been very conspicuous Cotton has
been going forward very freely, and
the announc ement by Great Britain
that cotton will not Ue considered
contraband, even to Germany, insures
continued free movement of this
staple. This. of course, will materi-
alIy relieve the cotton situation, and
will also serve to settle our foreign
debit balance and check gold exports.
To the south, which is largely de-
pendent upon foreign buying of cot
t1n. this moVen ent will be particu-
IarIy welcome, even if cotton does go
out at very low price. The pro-
posed cotton loan of S135, 900 600, un-
der the management Of "a committee
Of the federal reserve board, has re-
ceived considerable support, although
there are some doubts as to its legal
ity. The plan is meeting with much
favor, particularly in the south, as
matter Of expediency in great emer
gency. The federal reserve banks will
open about U'"o weeks hence. This
insures additional relief and ease in
the monetary situation Barring
any temporary local stringency which
might accompany transfer OF fluids
to the federal institutions, it is esti-
mated that the reduction in reserve
requirements which will follow this
operation will result in an expansion
of possibly $500, ,O00,00n in loans
This should insure continued ease II
money, and will materially facilitate
the retirement of clearing house Ger
tidcates and emergency currency
which have already been withdraw
70 considerable extent.
These five conditions-easier mon
ey, better foreign exchange situation
early opening of the federal reserve
banks, improvement in our eXpor
trade and a good harvest-are thu
five brightest and most encouraging
features in the American business
situation, which in other respects il
still very unsatisfactory and passing
through critical period. 1t Is no
desirable TO dwell too strongly upoI
the discouraGing side OF affairs, ye
1t would be dangerously foolish to X
more the many unsatisfactory conul
tions. Bank cleariDgS are still run
ming p per cent below year aye
the decrease being greatly empna
sized by suspension of the VaTl0u
stock and commodity exchanges
Railroad ear nings are unsatisfactory
those reported for the month OF Sci
tember showing loss OF per cen'
while for the first two weeks oil O'
tober the losses have been from Il
b per cent Building operation
are running about one-thlrd oeio
last year. Dividends have been ca
or passed by an unusually large nun
her OF industrials. The railroads,
may be noted with satisfaction, ha'
maintained their. regular pay men
remarkably we'll. There has been
lurther increase in the number
idle cars, and also in business lal
ures. The steel trade is now run II
less than 30 per cent OF its capacit
and prices continue weak. The te
Tile industries were much derange
By the war and the fall in cotto
nut are nov showing greater stead
hess and activity. Such facts
these are already too familiar, Int
chiefly reflect the shock Of the Eur
epean war upon the United state
Fortunately, there is good reason
believe that the worst effects OF III
shock are already over, there Is eve
encouragement for believing that /
rebound has fairly begun. RecoVe
Is already in sight.