The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-10-06
IN BUSINESS WORLD

in the adjustment Of Industrial and
financial affairs to war conditions"
writes Henry Clews. the New York
banker. in his current weekly finan-
cial review, and he continues: The
most important improvement has been
in the foreign exchange situation.
facilitated by the operation Of the new
$1OO.OOo.0OO gold pool which made its
first shipment OF $10,000,0O0 to Can
ada during the latter half Of the week.
Sterling exchange was thus being put
upon more practical basis: and for
eign intercourse. commercially and
financially. will be materially helped
thereby. Another encouraging devel-
opment was the naming Of directors
for the federal reserve banks in the
principal cities. The list for New
York has already been completed.
and it is hoped that the local insti-
tuition will be ready for operation by
Dec. 1, in which case it will soon be
possible for the entire system to be
In working order. 1t is of great inn
portance that the new reserve banks
be open as soon as practicable. since
they Provide the most practical relief
of the Stock Exchange may have to be
postponed until that date. Much will
depend upon the outcome Of the war.
A decisive victory on the part of the
allies would hasten .umption both
here and in London. From the latter
point reports come that efforts are I'M
der way for cooperation with the
government towards an early reopen
ing of the London stock exchange.
Should ''e latter event occur, it would
OF course materially hasten the OPEN
ing Of the New York exchange.
Trading in securities in this mar
ket is steadily increasing. and the
prices realized for unlisted stocks
have been anticipated under such ex-
traordinary circumstances. This fact
will tend to give confidence in security
values generally, and should be a ma
terial element Of support when the ex-
change is regularly opened for bust
ness. 1t is questionable now whether
Europe would make New York
wholesale dumping ground when this
exchange is opened. Europe is be-
coming accustomed to war conditions.
Confidence is gradually reviving, par
ticularly in London. Pressure there
to sell must have diminished, and
buyers in Europe are certainly more
numerous than six or eight weeks
ago. There are evidences of consider
able money awaiting investment in
London, and it must not be forgotten
that American stocks are now the best
and the safest in the world. This fact
alone will prove an important element
of support both at home and abroad
in case liquidation on a large scale
was to be resumed. Among the ele-
ments of strength is the continued
growth of our foreign trade. Both
imports and exports are rapidly re-
turning to normal proportions, in
spite OF the restrictions upon German..
Austrian and Russian commerce. In
all probability we shall soon have a
liberal excess of exports which will
tend to, Offset foreign sales Of asecuri-s
ties and will render an outward move
ment of gold more difficult. The war.
caught us with a large foreign in
debtedness, the result of small ex-
ports and the return of American Sc
curities. Ordinarily this could have
been settled by our shipments Of
wheat and cotton, but the Interrupt
ton of cotton exports seriously COM
plicated the situation. This difficulty,
however, is now in a fair way Of be-
ing successfully met.
1.-The home monetary situation
shows signs of lessenged strain. Credit
10 hoin nrnnRr1v
speaking. conserved, the effect of
which is to impose considerable re-
straint upon trade and enterprise. AS
result the public is economizing.
which further lessons the activity of
business and acts as minimizer Of
credit 1t is evidently believed that in
a few months the money market will
be glutted with idle funds, especially
rency which has recently taken place
under the Aldrich -Vreeland emergency
law. Bank clcarings for the entire
country are running 25 to 80 per cent
below a year ago. thus emphasizing
the contraction of business. although
this decrease must be very largely due
to the stoppaEe of stock exchange
transactions. The effect of the war
upon new enterprise is shown by the
fact that the new capital issues OF rail-
roads and Industrial corporations dur
ing September were only about $27,-
/ 100000, a new low record, as COM
pared with nearly s79.000,000 a year
ago. Much of last months amount
, was intended for the extension of ma
turing obligations. The output OF
municipal bonds in September was
] only $4,8S0,OOO. against $24.970,0O0 in
the same month last year. Contrary
to general belief, commodity price.
are lower than a month ago.. Wheat
corn, cotton, provisions. iron. copper
and many of the articles made from
these products have been selling a
| l1,u,or chieflxr owing To am Ylla