The Calumet news., 1914-10-05
| N PROVEM MENT
OF CONDITIONS
Gradual Betterment in US. Is Seen
by Hayden, Stone & Co.


have been no very important develop
lnents one way or the other, there is
discernible a gradual betterment of
conditions and growth of optimism in
financial circles.
The strength and activity of the
sterling exchange market, i'm spite of
the successful flotation of the $780,
100000 gold pool, was probably di-
rectly due to the shortage Of exchange
To meet October interest and dividend
disbursements i'm London and Paris.
IL only goes To show, however, that
the amounts which we as a nation
owed abroad were larger than at first
thought land that it is perhaps better
To make haste slowly than TO look for
a hurried and consequently unstable
Improvement.
The United States cannot be chang
ed from "A debtor nation to creditor
ration all at once. We are still great
ly in debt To Europe, and since the
first of the year. counting the gold
actually shipped abroad, and the $780,
100000 gold fund now under negotia-
tion, this country has furnished about
$500, 900, 600 of reserve money for in
ternational uses. This has, unduubted-
ly, had "A beneficial effect, not only in
absolutely reducing our obligations,
but also i'm creating a favorable senti-
ment, for as soon as it is known that
we are prepared and willing To pay in
gold, there will he less inclination to
require gold i'm payment, and our cred
itors i'm Europe will be glad to take
payment i'm the for moi foodstuffs and
manufactures.
Already some progress has been
made in this direction. For the month
Of August the unfavorable balance Of
trade was the largest ever reported for
that month, but during September
there has been very encouraging in
crease in exports from the port Of
New York. For the week ended Sep
tcmber 26th they were $50 per cent
greater than for week ended August
22nd. and for the four weeks ended
September Goth the total was greater
than during the same period in 1918. If
the other big ports can approach the
same record there is some ground Of
hoping that September may even show
n small excess of exports over inn
ports. This is, perhaps, the most con-
crete evidence of recovery i'm general
business which has yet presented it
self and should aid materially in low
ering the rate Of foreign exchange.
Added to this is the fact that from
now on the expenditures of Americans
travelling abroad, which formerly con-
stituted quite n drain tending to offset
the balance due this country for mer-
chandise exports. will probably prove
an insignificant factor
Re-Openng of Exchanges.
When the stock exchanges will again
reopen their doors for unrestricted
| tracing, il is still too early To say.
| There seems to be n growing demand
that trading should be permitted on
some basis. Many plans have been sug-
gested with this end In view. But it
il better that we should build slowly
and thoroughly the foundations which
will make for safe and permanent
resumption of commercial activity in
all it's forms. Two of the prime es-
sentials for re-opening OF the stock
exchanges are the demonstration OF
our ability to meet our debts abroad
through merchandise exports rather
than gold shipments, and the re-es-
tablishment of American railroad cred
it. The former appears To be in fair
way to being accomplished; and in re-
gard to the latter, the Interstate Com
mercc Commission has agreed to hear
again the petition of the eastern roads
for n per cent increase in freight
rates, which practically assures the
granting of an increase, and has this
week permitted an advance in pas
senger mileage rate from cents to
l2L cents per mile. These evidences
Of n change from an attitude on the
part of the commission of apparent
hostility to the transportation inter-
csts should go long way toward as
suring tho public that railroad invest
ments are To be protected.
AT times Il may seem as though lit
tie or no real progress were being
made, but il is we'll to remember that
the present situation is entirely with
OUT precedent, and that all things con-
sidered, we are gradually forging
ahead. and each day is bringing near
the restoration of normal conditions.
Hayden. Stone 4 Co.
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Philadelphia's Social Science school