Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-11-15

our Indebtedness to Europe, and in a
way much more acceptable to US than
by the expectation Of gold: AS our
trade balance grows we will find it
possible to absorb an increasing
amount of our securities If Europe is
disposed to sell them. 1t holds many
billions of American obligations, but
there is no reason to suppose that more
than a small fraction of these Euro
pean holdings of American stocks and
bonds would be sold here. The head
of one Of the great international bank
ing houses said recently that 1t was
not likely that more than $100,000,000
of our stocks and bonds would be sold
by Europe upon the reopening of the
exchanges. That sum is great, but at
the present rate it amounts to only one
and half months excess of exports
over imports The building up of a
greater trade balance is very widely
recognized as a necessary preliminary
to the resumption of unrestricted stock
exchange operations, but it is not by
any means agreed that trading cannot
be resumed until it is resumed without
restriction. Banking practices being
what they have been In the past, the
closing of the stock exchange has ex-
erted unfavorable influence far beyond
brokerage circles themselves. and it is
not well that the attempt to re-establish
natural market conditions should be
delayed any longer than is absolutely
necessary.
Demand for Securities.
Investment bankers report an in
creasing demand for good securities.
short-term notes being in particular ia
vor. Stock prices on the Outside mar
ket" have shown a substantial i'm
provement, such standard issues as
Atchison, New York Central. St Paul.
Southern and Union Pacific and United
States Steel registering important
gains. The improvement in general fl
nancial sentiment appears to be coinci-
dent with the much easier tone to
money. which is now we'll below per
cent for the distant maturltieS.
The publication this week of the gov
eminent crop report estimating the
seasons production from the soil is but
another reminder of the vast amount
cultural districts this year. When we
consider that this years wheat crop of
S91, $4,000 bushels is 13O,OOO.OOO more
than our largest previous crop, and
that the price of wheat IS constantly
soaring on account of the European
conflict, it is easy to figure one billion
dollars for the wheat crop alone. Then
along comes King Corn. with 2.7O5.6O2.-
900 bushels at 20 cents each. nearly two
billions more. Oats, barley, rye, pota-
toes, f1axseed, all show an increase over
last year. Cotton will total 7.341,O00,-
900 pounds. and under normal condi-
lions (Which are not far distant as far
as the cotton crop is concerned) will
yield another billion dollars.
President George b. Caldwell, speak
ing Thursday to the Investment Bank
ers of America, reminds US of the fact
that we have an annual surplus of ten
billion dollars of agricultural products
to sell; that our manufacturing is be-
ginning to receive stimulus by de-
mands from abroad, heretofore supplied
by their own mills and men; that our
new banking system will strengthen
credits and facilitate stable conditions
and more reasonable money rates. The
signs are propitious. America Is about
to come into her own.
w. s. COUSINS.