Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-12-04
the Keynote
In Henry CleWs' Letter
Says That American Business Community Met Magmfcently the
Crisis Brought on by the War in Europe; American Finance
and Business Wonderfully Strong. "

spirit of hopefulness. The real Ques-
| ton is, have we fairly passed and dis
| counted the worst? 1t would seem as
if we really had. At home we have
| been favored with all the important
| advantages of a good harvest. The
Department of Agriculture tells us
| that the production per acre of all u
| crops was 81 percent larger this year
| than last year, and 2.3 percent above
the ten-year average. This fact is Of
| vital importance in the agricultural
sections OF the United States, espe-
| cially as our farming classes and
those dependent upon them are still
the principal element in our national
prosperity. We find the keenest de-
preston at financial centers. Our
industrial centers have endured a de.
preston rather less severe; while the
agricultural districts outside of the
Cotton Belt have felt the reaction
much less than any other. Another
important consideration is that We
are about to open a new Congress,
| with distinct promises Of less hostile
legislation from Washington. If this
is accompanied by a policy of fair
play to the railroads much will have
been done towards fastening recuper.
alton on this side Of the Atlantic. The
cotton crisis is about over, and much
of the financial aid that. was promis.
ed will not be necessary. The same
is true of the foreign exchange mark
ed. The reserve banks made a success
full start, and have already created a
highly important source of relief in
case of future emergencies. All
things considered the financial sltua-
ton in New York has marvellously
improved. Money is abundant and
credit is easier, the demand for COM
mercial paper showing steady i'm.
provement. Foreign exchange is near.
er normal than at any time since the
war began. Our bank reserves have
been largely expanded by the new
system, and both emergency currency
and clearing house certificates are
being rapidly withdrawn. The latter
policy should be p%ersistently followed
in order to check gold exports which
will surely follow on a liberal scale il
money becomes too redundant or too
cheap. Fortunately our export trade
is rallying from the blow Of the war,
and is being further Stimulated by
heavy war contracts, which are keep
ing many OF our factories busy. Mean.
while imports are comparatively light
SO that a liberal excess Of exports is
in prospect, which will tend to keep
down our foreign obligations and re.
strain gold shipments. Our W trade 4
already shows signs Of having turn.E
ed the corner. y
The New York Stock Excnange has i
decided to open on the plan SO often
suggested in these advices, that of
restricted and gradual RESUMPTION. Al
this wiring there are no signs of i'm
pOrtant domestic liquidation, and The
stock market has already recovered
from the decentralization which exis,.
ed at its closing in July. Confidence
has been largely restored and a con.
siderable buying power is already
waiting to AXE advantage of any tenn
porary recessions should they happen
to occur. AS to the much dreaded for
eign liquidation. that remains an I'M
known quantity. The best opinion is
that selling on this account. will not
be nearly as large as expected. The
supply of American securities abroad
has been much reduced. European
holders have to a considerable extent
already adjusted themselves to new
conditions. London is not expected
to sell American bonds OF which il is
a large holder. Investors are less dis
posed to sell, because there are no ;
safer securities to be had at present !
than Americans, which are often quot
ed at bargain prices. Only those in
distress can now be expected to lioui.
date, and many of these individuals
have had time to procure assistance,
So it is fair to infer that the danger
to the market from foreign selling has
been exaggerated and partly disan.
peared. BY opening the market 70
bonds only and avoiding dealings in
International stocks for a period .he
danger to this market will he s+ill
further eliminated. Time plus a grad.
ual, restoration Of confidence will do
the rest. Recently the course Of tho
war a been such as to encourage
earlier hopes of peace. This. If
course, has stimulated optimism and
,bettered- market conditions.
HENRY CLEWs.