The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-12-27
Final Letter Of the Year Deals With
Conditions Past and Present
and Looks Into the
Future.
GETTING TOO CAUTIOUS
Many Reasons for Depression Dur
Ing This Most Remarkable
Year Of 1914 But Many
No Longer Exist.

NEW YORK, Dec. 26.-The quiet
ness usual at this season of the year,
lis intensified by the feeling of caution
which exists in all parts of the coun-
try. 1t is fair question to ask If,
this caution is not going beyond reas-
on and reaching stage where it must
react. as all sentiment does when al
true there have been many reasons
for depression in this extraordinary
year of 1914. But many of these
reasons no longer exist: some have
been amply discounted, and others OF
a positively encouraging nature have
not yet had an opportunity to exert
their full influence. Among the reas-
ons for uncertainty which no longer
exist are the Mexican difficulties, the
antitrust and investigation manias
and the tariff readjustment. These
important problems absorbed atten-
ton during the first half Of the year,
but since then have been ignored, and
for FIVE months the market has had to
unexpectedly face the most colossal
war In history. The entire business
world received shock which it will
take years to obliterate. So far as
this country is concerned, however,
the effect has been very largely dis
counted. Business quickly adjusted
itself to war conditions, and is now
going along nearly "as usual" In the
future this market is more likely to
be sensitive to news indicating peace
than to news of an opposite charac-
ter. The indications are that the
war may not last as long as at one
time feared and, If peace should
come within the next six months, the
financial effects will prove less dis
|astrous than anticipated, as all the
|belligerents are showing much
greater ability to meet the costs than
was calculated upon. The war, there
fore. while still a matter of great I'M
certainty, has been well discounted
in this market, and should not pro-
|duce any further material depression
unless disasters occur which at the
moment seem beyond the range of
probabilities.
This brings us to another set Of
causes which are of purely encour-
aging nature. and which thus far have
had little or no effect upon business
or stock market values. Chief of
these is the clearing of the political
atmosphere. There has been a most
striking change in the attitude of the
federal government and the legisla-
ture toward business interests. The
disposition now is to aid, not hinder,
business which had suffered serious
lily from unreasoning hostility. At last
the country realizes that the Sherman
Jaw under the new Interpretation is
sufficient to protect the people against
abuses of monopoly; and If any doubt
on that score exists the new Clayton
law makes assurance doubly sure. The
beneficial effects Of this change have
not yet had an opportunity of express
ing themselves. Business had ad-
justed itself to the new tariff: and,
though some of the changes work
harshly and may come up for recti.
tication. the tariff as disturbing
element has been relegated to the
rear. This favorable development
has also escaped attention. Another
step forward Of supreme Importance
lis the reconstruction of our banking
system upon scientific lines, and in
stricter accordance with long recog-
nized necessities. The new federal
reserve system made a splendid start
on the road to sound and progressive
banking The country now has an
elastic currency system: also a plan
whereby the banking powers of the
country are concentrated, with the
power of control distributed some
what in accordance with the import
ance of various sections. The new
system is not yet in full working or
der, but has already shown it's poten-
tialities for good, and the country now
possesses a financial organization bet
ter able to cope with financial crises
than any which we have hitherto had.
This is another favorable factor which
has not been adequately reflected in
either business or financial circles.
Still another encouraging factor has
been a good harvest, which saved the
country from a serious setback and
impaired positive optimism through
out the grain belt. We raised far too
much cotton to benefit the south: but
this will prove not unmixed bless
ing. since cheap cotton must help
both domestic and European manufac-
turers to place their industry upon a
more normal condition. Lastly the
interstate commerce commission
granted the railroads permission to
, advance rates per cent with certain
we'll known exceptions The decision
! was somewhat disappointing mas