The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-09-21
Henry clews Says This Country
Rapidly Recovering From the
Terrific Blow Delivered
by the War.
MUCH DEPENDS ON WAR
Early End Of the Struggle Would
Bring Absolute Relief-War
10 Costing About $4,000
900 Day.

wv A90ys
NEW YORK, Sept 19-This coun-
conditions and already shows visible
signs Of recovery from the terrific
blow which fell upon the entire civil
lied world more than six weeks ago.
That blow smashed the worlds credit
system in a fashion never. before ex-
perienced and never expected by
those responsible for the war, or by
those who were able to estimate its
effects. Nevertheless, the shock has
been met with remarkable success in
this country. thanks to intelligent CO.
operation between government. imam
cial and commercial interests: and.
while the difficulties to overcome are
still OF the gravest character and
while further disasters may yet be
possible, the situation is vastly bet
ter than at any time since the war be-
gan and the outlook is certainly for
steady, Improvement. There is bet
ter demand for commercial paper.
and foreign exchange il declining
and at the lowest since the war. FL
nance, grain and cotton bills are each
in better supply and tend to prevent
gold exports which otherwise would
be inevitable. The success Of the
New York city 6 per cent loan, and
the improved condition of the Bank
of England are also encouraging fac
tors.
Much necessarily depends upon the
progress Of the war. An early end
OF the struggle would bring absolute
relief, followed probably by a sharp
rebound in values. A protracted
struggle would. however, impose a
growing stain upon an already seri-
ously weakened financial position
abroad. II the allies are determined.
as is said, to crush militarism, that
means the end will not come until
exhaustion OF one side or the other.
An earnest movement Is being made
for peace, but at this stage Of the
struggle, 1t seems hardly likely that
Germany would accept such propos-
ais as the allies may eb expected to
make. It is said this war is costing
about $50,O0O,O0O day, which is at
the rate Of about $4,000, 100000 a
year. These figures are probably
somewhat exaggerated. Besides. 1t
should be remembered that in time
Of peace the huge armies OF Europe
have cost staggering sums: SO that
the net increase in the war is not rep
resented BY its present actual cost.
The worst effects Of the struggle at
the moment are the awful carnage,
the wanton destruction of property,
and the wholesale Generalization OF
finance and commerce. Happily the
financial situation is gradually i'm.
York. No arrangements have as yet
been made for the opening Of the
stock exchanges at these respective
markets for the rason that thus far
no plan has been devised for taking
care of the securities which would
probably be offered for sale from
abroad. Until some plan Of gradual
or partial resumption is devised II
is the part Of wisdom to keep the ex
changes closed; disappointing as thai
may be to the large numbers vitality
interested in their resumption.
Next to ending the war, the sures'
means OF stick market resumption
will be revival Of confidence. Thu.
far investors seem to have held theil
heads, and the greatly improved fl
nancial conditions OF the last few
weeks warrant a distinctly NOR,
hopeful feeling regarding the future
iof investments. There is no doub
that any shrinkage in our invest
ment securities resulting from tn,
war Will be made good within rea
sonable period OF time after the wal
is over History shows that in al
wars a sharp recovery in securit!
values followed after the worst ef
fects became known. The world,
output of securities annually amounts
to about 81 ,00o, 100000. The war will
of course result in vast output O
foreign loans. for posterity will b,
obliged to pay the costs. 1t is quit,
probable, therefore. that the outpu
of new securities in this country viii
be curtaiIed for some time to come
i This of itself will have steadyin,
influence upon security values here
especially upon those of the bette
class.
There is another reason also TO
preserving confidence in regard t,
American securities, which is tina
they are now at very low price
having withstood the strain of. unfa
vorable conditions both at home an,
iabroad, with remarkable success
There have been relatively few sus
; pensions OF dividends, which demon
strates that our industrial and rail
road corporations have been emf
nently successful in sustaining thei
credit, Notwithstanding many re