The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-08-24


Every druggist sells Resinol Soap
(26c.), and Ointment 1900 and 81.
the present methods OF limited trans
actions for cash under approval OF
the stock exchange committee Of five.
This plan has worked very satisfac-
torily and has done much toward furn-
ishing relief. prices being maintained
at the closing of July 80, and in some
cases showing a slight Improvement
Our bankers are doing their utmost to
settle our domestic money situation,
which has been greatly relieved by
emergency circulation, by the release
Of government funds and by the issue
OF clearing house certificates. Thus
far all infiationary proposals have
been sternly checked; and it is to-
be hoped that this policy will be firm
ly adhered to. Imitation might help
now, but would eventually bring on
vastly worse conditions than yet
seen. N
A fair idea OF the effects Of the war
on the United States can now be lad.
AS the Generalization Of the first
shock passes away, it 10 seen that
German commerce and industry will
suffer more than any other. The
United States will temporarily suffer
from the loss of German imports.
These. however, will in due season be
compensated for by supplies obtained
from other countries and by the crea-
ton OF new, or stimulus of old indus
tries in this country. This may or
may not revive the tariff as an is
sue. Our steel industry will ultimate
ly also benefit, for many Of the orders
which at one time went to Germany
will now be filled In America. Our
cotton mills may reasonably expect
larger orders for export, which will
somewhat offset the loss Of German
purchases of raw cotton. Germany
transacted a very large trade with
South America, much of which she
will lose to the United States. The
American sugar industry will also
profit largely by the temporary loss
Of the German supply. The worst OF
the shock of war in this country has
already been felt. We may see its
later effects in high prices of food,
while the dislocation Of industry will
temporarily increase the number Of
unemployed. Ultimately, however,
our industries will receive great
impetus, and ii any country In the
world can possibly benefit from the
colossal disaster now hanging over
Europe, it will be the Tilted States,
which is happily free of all foreign
entanglements and should absolutely
keep SO.
Considering the abnormal condi-
lions which have prevailed since the
European nations became engaged in
a death struggle, the banking inter-
ests throughout the country have
handled their affairs remarkably well:
nevertheless, it goes without saying
that the banks are under severe
strain to provide for the legitimate
wants Of their customers and every
measure calculated to relieve the
situation should be resorted to. In
about two months time It Is under
stood that the federal banking system
will be in operation. It should be
started in a much shorter time, If
possible, for the simple reason that
when this becomes a fact the national
banks throughout the country will be
permitted to reduce their reserve re-
quirements considerably. It is esti-
mated that the deposits of country
banks amount to about $4,000, 900 900.
Under the new law, the reserve NJ
these deposits will be reduced from
Is 70 IL per cent, which will release
$7s,OOO,O0O. The deposits Of national
banks in reserve cities are placed at
around $4,000, 100000. Under the
new law the reserve will be reduced
from 25 to Is per cent, which will
further release 5000, 100000. Deposits
OF national banks in central reserve
cities are, say, S1,60O, 900 900; the re-
serve requirements OF these banks
will be reduced from 25 to Is per cent,
which means an additional reduction
in reserves OF $112,O0O,0oO. From
these figures It will be seen that the
total amount to be thus released to-
the national banks under the law
will be $39O,000,OO0. II there ever was
justifiable occasion in the financial
affairs OF this country which called
for prompt action it is probably now
To my mind, therefore, Il would I'M
doubtedly be wise II some means
could be found to put in operation
that part Of the law which would per-
NIT of reduction in reserve re-
quirements of the national banks
This would certainly put the country
on an easier and more comfortable
financial footing than any other plan
that could be az present devised, be-
sides enabling the banks to increase
their call loan facilities which, a.
present, is an essential need.
This War will rrohahlx nre,v., which