The chronicle=news., 1914-12-10

the permanent prosperity OF the
country than even the ending of the
foreign war. While electric railway
gross receipts. unlike those of the
steam lines, have been maintained,
and even increased in the Middle
West. such concerns az well as the
steam railroads find 1t impossible to
extend their activities.
| Largely owing to the railroad site
uation many OF the great fundamen-
tai industries, which either depend
directly upon the railroads or in
sense take their cue from railroad
activity-such rs iron and steel. the
electrical trades. the equipment COM
pan les. the lumber industry, and in u
general way everything connected
with construction worl: and to a
considerable extend the building
exceedingly quiet. This condition
was not primarily due t oths> war al
though accumulated by it. But re-
ports now come III Of new building
projects in the Middle West. The
concrete trade is picking up, and to
u slight extent this is true of the
electrical trade. although machinery
lines still appear very quiet, The
president of one of the greater steel
companies says that in his opinion
the bottom has been reached in the
steel trade. Confirmation Of this
view seems to be found in press re-
ports Of the last few days.
| 1t is evident that financial repair
4, rx,tN IL
the wheels of industry moving. A
markedly large number OF letters
empllasize the service which the OPP
eninG of the Federal Reserve Banks
is expected to afford. Not only do
bankers make this point. Manufact-
uurers, and merchants are even more
Impressed with benefits to be cx-
pected from these new institutions.
For example, emphasis is laid on this
point by the National Association OF
Tanners. Apparently 1t is felt that
not only will the new reserve re-
Huirements release funds for lOaning,
but that the rediscount featurue Will
ultimately become important. and
that in general create" efficiency
will be given our currency supply.
Numerous letters refer 10 the low
ering of money rates that has, taken
place in the last month, especially
in the Middle West, and the conse-
quent freer movement OF trade. An
other significant feature is the I'M
provement in the savings bank situ
iation. While the outbreak of the
war was signalizcd by considerable
Withdrawals and notices of with
f! drawnls, where such notice was re-
quired, it is to be noted that on the
maturity of such notices very little
actual cash was withdrawn from saw
ings institutions. Tie falling off in
deposits noted in many quarters has
ceased The great savings institu,
tions of New York City report that
business is now altogether normal.
In Philadelphia and even in Pitts
burgs, despite the severity of the de-
ipression in the iron and steel trade,
1.-THE deposits of the largest savings
banks have. during the last month,
exceeded Withdrawals. In such cit
les as Rochester. Cleveland, Detroit,
and St Paul, to mention but a few,
deposits are holding their own or
more.
stress Is laid by many correspond
ents on the general belief that do
fmestic conditions will slow a decid-
ed improvement after January I, a
point which was made by Sir George
Paish upon his return to England a
few days ago. This is partly due to
the belief that by such time the Fed
eral Reserve system will be in fuller
Operation. knowledge of the acciim-
ulation of money awaiting invest
lment. and belief that the most badly
hit trades. such az cotton. will be
decidedly better off by that time. al
so contribute. ~
The last few weeks have brought
about a little convalescence even In
those industries which seemed who'll
lily crippled. From mayors of cities
in North and South Carolina. Ala
bama and Georgia. came more cheer
full views of the situation there. Tie
bankers cotton pool is frequently
lcited by correspondents as meaning