Las Vegas optic., 1914-02-10
EASIER MONEY A
FACTOR in
ADVANCE
cLEWs SAYS BUSINESS WILL I'M
PROVE SINCE INTEREST
RATES HAVE DROPPED

barge would appear TO be the best
thing to do under the circumstances.
1t now puts us in line with other great
nations in connection with Mexico and
removes the possibility of Intervention
1t also confines the fighting within
Mexican borders, as 1t should be, and
the more desperately they fight the
sooner the trouble will be ended. Pres
ident Wilson through his achievements
in the short time he has been the exc
cutive of the nation, has made himself
the most Influential factor today in po-
litical life in this country; and his
present attitude towards the trusts and
business generally, which places him
on record as constructionist and
not a destructionist, is certainl va well
come one, as it will bring back more
confidence in business circles which
will lead to increased courage III en-
barking upon larger business under
takings, resulting finally in general
trade partaking Of it's former activity.
The dominating influence in the Sc
lcurfty markets today is the worldwide
ease of money. For long period
Stocks have been unduly depressed by
abnormally high rates of interest The
sudden and extreme urop in interest
rates has since the year began caused
a complete change in conditions af-
fecting investments Since the pros
poets are for continued ease in money
the world over for months to come,
it follows that many good securities
which have been selling on a per
cent basis and higher must show
gradual increased appreciation In
few short weeks interest rates drop-
ped considerably. AS yet there has
been no corresponding advance in the
value Of securities. Ehe. two main
reasons for cheap money are the slow
ing down Of business in the principal
commercial nations the United
States, Great Britain and Germany
and the disappearance Of the strain
induced by the Balkan war, followed
by release of funds boarded during
the struggle How long the present
ease of money will last, it is difficult
to determine The present slaekness
oe trade cannot continue indefinitely.
Thus far, there has been no over-pro-
duction Of merchandise in any of he
great markets, and industrial condi-
tions are generally sound. Nothing
is needed for a trade revival but a
recovery in confidence which of itself
will be a stimulus to new enterprise.
Cheap money must prove a very i'm
portant stimulus in this direction.
Many flotations have been long de-
layed owing to excessive interest rates
and as these are launched the funds
thus acquired will be redistributed in
the channels Of industry and cause a
natural business recovery, both at
home and abroad. The principal dan
ger has been from a flood of such flo
tations The new capital issues in
London in January were nearly 9220,-
5000, the largest on record for that
month, and e13,0OO,000 ahead of a
year ago. Indications point to further
heavy issues, particularly in govern
ment loans, the latest being e12,000,
600 Belgian loan. Fortunately in this
country we are proceeding on a much
more prudent scale The new output
of securities in the United States In
January was reported at about $780,
100000 decrease Of nearly $20,0O0.-
600 compared with last year. More
over, the net amount of issues was
much less than the above figures for
the reason that a considerable proper,
tion represented refunding operations
or payment Of maturing obligations
This means steady reduction OF what
was III reality floating debt. Never
theless, both monetary and business
are automatically correcting
themselves. Business sentiment
throughout the United States is much
more hopeful, and in due season wei
may expect a larger and more satis-
factory volume Of trade. although this
change cannot take place overnight
The steadying efforts Of President
Wilson at Washington have done much
toward rebuilding confidence and paw
ing the way for business revival. II
is well known that mere is an ag
gressive radical element at Washing
ton, anxious to make many extreme
changes In our economic status. some
Of them very unsettling. It is also
recognized that the approaching con
sressional elections next fall offer an
Important opportunity for political
fireworks which will not be allowed to
mas ,snyYfilizad E1aun1gv the sober Sec