Las Vegas optic., 1914-09-21
COUNTRY GROWS
ADJUSTED TO
CONDITIONS
THE EUROPEAN WAR is HAVING
LESS EFFECT ON BUsI.
NESS HERE

New York, Sept 21.-This countr,
is rapidly adjusting Itself TO war con
ditions and already shows visibl,
signs of recovery from the terrifi,
blow which fell upon the entire civ
ilized world more than six weeks ago
That blow smashed the worlds credit
system in a fashion never before ex
perienced and never expected by those
responsible for the war, or by those
who were able to estimate It's effects
Nevertheless, the shock has been me-
with remarkable success in this coun
try, thanks to intelligent cooperation
between governm. Mt, financial and
commercial interests; and, while the
difficulties to overcome are still OF
the grayest character and while fur
,her disasters may yet be possible
the situation is vastly better than at
any time since the war began and the
outlook is certainly for steady i'm.
provement. There is a better de.
mand for commercial paper and for.
eign exchange is declining and at the
lowest since the war. Finance. grain
and cotton bills are each in better
supply and tend to prevent gold ex-
ports which otherwise would be in
evitable. The success of the New
York city per cent loan, and the i'm.
proved condition of the Bank of Eng
land are also encouraging factors.
Much necessarily depends upon the
progress of the war. An early end
of the struggle would bring absolute
relief, followed probably by sharp
rebound in values. A protracted strug-
gle would, however, impose a grow
ing strain upon an already seriously
weakened financial position abroad.
II the allies are determined, as is
said, to crush militarism, that means
the end will not come until exhaus-
ton of one side or the other. An
earnest movement is being made for
peace, but at this stage of the strug-
gle it seems hardly likely that Ger
many would accept such proposals
as the allies may be expected to
make. 1t is said this war is costing
about $5O,0000OO a day, which is at
the rate of about $1S, ,000, 900, 900 a
year. These figures. are probably
somewhat exaggerated. Besides, it
should be remembered that in time of
peace the huge armies of Europe have
cost staggering sums; so that the net
in the war is not represented
by its present actual cost. The worst
effects of the struggle at the moment
are the awful carnage, the wanton
destruction of property and the whole
sale decentralization of finance and
Happily the financial sit
uation is gradually improving, both
in London and in New York. No ar
rangements have as yet been made
for the opening of the stock ex-
changes at these respective markets
for the reason that thus far no plan
has been devised for taking care of
the securities which would probably
be offered for sale from abroad. I'm |
I'll some plan of gradual or partial re
sumption is devised it is the part of
wisdom to keep the exchanges closed:
as that may be to the
large numbers vitally interested in
heir resumption.
Next to ending the war, the surest |
means of stock market resumption !
will be a revival of confidence. Thus
ar investors seem to have held their
heads, and the greatly improved fl
nancial conditions of the last few
weeks warrant distinctly more hope
III lOClilS lOSdAulHS Tic IuLuI6 VI Ill |
vestments. There is no doubt that
my shrinkage in our investment Sc
surities resulting from the war will
be made good within a reasonable
period of time after the war is over.
History shows that in all wars sharp
in security values followed |
after the worst effects became known.
The worlds output of securities an.
lually amounts to about $4,000, ,000,- |
100. The war will of course result in
/ vast output of foreign loans, for
posterity will be obliged to pay the
costs. 1t is quite probable, therefore,
that the output of new securities in
this country will be curtailed for
some time to come. This Of itself will
have steadying influence upon se-
curity values here, especially upon