Las Vegas optic., 1914-11-03
FINANCIAL SKIES
BEGINNING TO
CLEAR
N SPITE OF THE WAR IN EU-
ROPE, CONDITIONS HERE
ARE ON THE MEND

New York, Nov 5.-The financial
situation grows brighter almost daily
iii spite of the heavy European war
cloud. This week there has been
marked progress in clearing up the
foreign exchange situation, and the re
strictions upon credit, foreign and do
nestle, are being gradually lessened.
One of the most striking evidences of
Improvement has been in the recovery
OF our foreign trade, particularly in
exports, from the effects of war shown
in the Setember statistics. In that
month it will be recalled our exports
declined $62,0O0,OOO and our imports
$31 100000, the loss in exports being
largely in cotton ard the loss in i'm
ports being chiefly in manufactured
products. Our export trade during
the past week, has been particularly
active. The increase in raw products
and war supplies has been very con-
spicuous. Cotton has been going for
ward very freely; and the announce
nent by Great Britain that cotton will
not be considered contraband, even to
Germany, insures q, continued free
movement of this staple. This OF
course will materially relieve the cot
ton situation, and will also serve to
settle our foreign debit balance and
check gold exports. To the south,
which is largely dependent upon for
eign buying of cotton, this movement
Will be particularly welcome, even if
cotton does go out at very low price.
The proposed cotton loan of $135000,-
900 under the management Of a com
mittee of the federal reserve board
las received considerable support, al
though there are some doubts as to
lis legality The plan is meeting with
much favor, particularly in the south.
as a matter of expediency in a great
The federal reserve banks
viii open about two weeks hence. This
iusures additional relief and ease in
monetary situation. Barring any tenn
porary local stringency which might
accompany a transfer of funds to the
federal institutions, it is estimated
that the reduction III reserve require
r:tnts which will follow this operation
will result in an expansion of possibly
in loans. This should in
sure continued ease in money, and viii
facilitate the retirement Of
clearing house certificates and emer-
gency currency which have already
been withdrawn to a considerable ex-
tent.
These five conditions easier money
better foreign exchange situation, ear
Iy opening of the federal reserve
banks, improvement in our export
trade and a good harvest-are the
five brightest and most encouraging
features in the American business sit !
lation, which in other respects is still
very unsatisfactory and passing
through a critical period. 1t is not de-
israble to dwell too strongly upon the
side Of affairs, yet it
would be dangerously foolish to ig-
tore the many unsatisfactory condi-
lions. Bank clearings are still rum
ming 25 per cent below year ago,
lhe decrease being greatly emphasiz-
I'd by suspension Of the various stock
and commodity exchanges. Railroad
earnings are unsatisfactory, those re-
ported for the month of September
showing loss of seven per cent,
while for the first two weeks of Octo-
her the losses have been from 12 to
IS per cent. Building operations are
about one-third below last
year. Dividends have been cut or pass
I'd by an unusually large number Of
The railroads, it may be
noted with satisfaction. have main
aimed their regular payments remark
ably well There has been a further
Increase in the number OF idle cars.
ard also In business failures. The
steel trade is now running less than
80 per cent of its capacity and prices
continue weak. The textile indus
AR =