The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-11-09

city. and that prices are very low.
Nevertheless. the improved conditions
have impaired decidedly more opti-
mistic tone to steel manufacturers.
most of whom appear to be convinced
that depression Of the industry has
reached its limit. In the textile trades
there has been for nearly week
feeling OF greater confidence. The
impression has grown that values
have about touched bottom and that
consumption is really ut minimum.
The wooden industry is much exer-
cised by interference with its regular
supplies OF wool under war conditions,
though on the other hand some manu-
facturers have succeeded in capturing
large and profitable war contracts In
in the wheat belt. there is no abate-
ment OF the hopeful feeling engender-
ed by large crops. The south Is natur-
ally disappointed at the low prices of
cotton. for which the big yield will
only partly compensate. The resump
ton OF the export trade. however.
plus the efforts TO finance the crop
through cooperation has impaired
very important relief. 1t looks as II
at no distant date the cotton exchange
would reopen; another important
step toward resumption of normal &C
tivities. In other respects general
trade Is not satisfactory; Is restricted
In volume, and shows slow recovery.
The public at large is economizing.
partly from necessity, partly owing to
the large number OF unemployed and
partly to the SOLDERING effect of the
war The financial situation is really
considerably brighter, and conditions
are growing more and more favorable
toward an early reopening OF the stock
exchange. As have already stated In
these and other advioes, this should
be accomplished on restricted basis
and by gradual operations. The dan
gers OF foreign selling have greatly di-
minished. The effects of.the war have
been largely discounted In the money
market and the foreign exchange mar
ket will soon be upon a more satisfac-
tory basis. The credit situation has
been greatly improved. Liquidation
has been exhaustive. Values have al
ready declined to point discounting
the war, and have lately shown dis
tinctly advancing tendency There Is
certainly a steady investment demand
for prime securities, as we'll as a les
SEEMING in the pressure to sell securi-
ties. in general. No doubt II the ex-
change were opened, the week Just
ended would have seen pronounced
recovery in values. But so long as
the exchange is closed, the increasing
number Of buyers has no opportunity.
They are practically shut out of the
market, which is really confined to
needy sellers and all concerned are
thus deprived of the only true test OF
market values; the free and open con-
.flict OF opinion between the masses OF
buyers and sellers.
The railroad outlook is very con-
dieting. Gross earnings show steady
declines as result Of traffic contrac-
ton. On the other hand rigid econo-
mics have been enforced, so that in
many cases net earnings are making
satisfactory comparisons with year
ago. It is Questionable, however.
whether these extreme economies can
be kept up over any lengthy period,
and at the moment the prospect for
any MARTIAL gains in gross earnings is
not 50 encouraging. The need Of some
concessions on the part OF the inter-
state commerce commission is as great
as ever, II the credit of the railroads is
to be preserved and the public given
adequate transportation service. 1t Is
still surmised in Washington circles
that the commission Is undavorable
to the granting of the 5 percent adj
vance. It is also understood that the
administration is exceedingly anxious
that the railroads receive some con-
sideration, and that policy OF judi
cial fairness should be adopted rather
than one Of continued antagonistic re-
preston.
The war of course continues an all
important element in the situation. AL
though the first shock has been met
and fairly discounted, the outlook is
not for an early termination of the
struggle. For some time past no very
important advantages have been gain
ed by either side, and the prospect at
this date seems to be for an exhaust
ing conflict, which will require a
period of patient waiting.
HENRY CLEWS.
Bulletin.
When Union Pacific was last selling
a. approximately $50, urged selling
long stock, as l said I considered that
price high water mark, and I predict
ed that it would soon go down to a
figure to discount its value as an ex-
Hartman property. I also urged GUS
toners at the same time to sell out U.
S steel, then selling at so, as I con-
sidered that price equal to par for
that stock. especially considering the
company will soon be under fire by
the U. S. government suit, which will
= -. "a.