Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-08-03
The WAR AND BUSINESS.


The problem in business circles is
what is to be the effect of the Eu-
ropean war upon this country. With
out doubt it will cause some distur-
there seems to be nothing in the stu
alton that should give rise to pam
icky feeling except overtiInidity. The
closing of our exchanges IS simply
self protective measure. In effect the
exchanges are not and have not been
closed. Those who have selling orders
20 give can give them and have them
executed. The closing means thar mar
ket rates are not to be esta biished IL
the exchanges; that the seller must
find a cash buyer during the interim
which shall exist between the uncertain
~ created by financial conditions abroad
and the settling down 10 a rational
basis for trade. Holders OF foreign Sc
curities without doubt are hurrying
, to dispose OF them. Many holders Of
American securities abroad will seek
10 Immediately realize on them and
turn THAR holdings into gold, but those
are comparatively few. However, there
are enough of them to justify the ex-
changes in closing in order 10 protect
American gold Gold, the universal
medium Of exchange will De sought and
boarded by all the governments en-
gagged Wars are won on gold even
more than with armies.
But we had a notable demonstra-
/ ton last week Of the fundamental
! soundness Of our home finances. Call
/ ing attention to this Duns Review
notes that while the European politi-
/ cal complications caused acute unset
/ Element there and as precautionary
measure, the domestic securities mar
kets were closed Friday, following sim
! liar action az the leading centers
( abroad. Early investment buying and
] confidence in the situation here. and II
was encouraging that money remained
! on a fairly stable basis. Quotations,
/ Of course were advanced and all Of the
important institutions on the other
| side found il expedient 10 raise their
! official discount charges. New YORK
! is again being called upon for large
( amounts of gold and conditions IL ster
ling exchange have been without par
allel, rates moving upward in a SEN
sational manner. DEVELOPMENTS in
commercial and industrial channels
have been overshadowed by other
considerat tons, yet it is apparent that
the trend OF affairs is still forward.
We have the crops. Whatever Eu-
rope may do and however great the
number of men she may call from pro-
duction 10 destruction this country has
the crops, the men TO gather them ana
with this mighty war in progress the
market OF the world bidding for the
products Of the peaceful farms Of Iowa
and the agricultural states of America.
This agricultural middle west is one
great garden burdened with a record
breaking crop. II can not fail OF pros
perity For when the farmer has
money everybody has money and the
conditions are for complete outlet
under an abnormal demand for all that
the farmer raises and sells.
Without doubt the banks will pursue
cautious policy while matters
abroad remain in their present condi-
ton; but the safest place in the world
for Iowa money is in an Iowa bank OF
: loaned on good Iowa security. That
goes without saying. Only the ignorant
and the foolishly timid turn to the ole
time sock and the hiding place under
J the hearthstone nowadays.
. The war is 1000 miles away acros.
: 5000 miles of water The crops are IL
] the shock, cover the cornfelds ant
: await the time of gathering an assured
5 harvest. Some disturbance there vii
: be but there should be no loss OF con