Evening star., 1914-09-21
NATIONAL CITY BANK
DISCUSSES CONDITIONS
Reviews the Present and Future of
the United States and War
ring Nations.
Trade Opportunities. if Able to
Finance Them-Approves Treas
ury Action-Financial Notes.
BY I. A. FLEMING.

BY I. A. FLEMING.
Conditions as they actually exist. the
character of the emergency faced by
this country with the breaking out of
the European war. the bank situation.
after effects of the war and a general
discussion of credits and business form
some of the many subjects considered
by the National City Bank of New York
in an unusually important circular just
issued.
Attention is called to the fact that
the whole world had become. to
greater or lesser extent one communi-
tE, with network of interests and a
state of interdependence like that
usually existing in single country.
An outburst of primitive passion in
a remote country in Europe wrecked
the painfully developed structure of
modern civilization
1t was fortunate that the condition
of the American stock market, as rep
resented by the New York stock EX-
change, had been greatly relieved by
the serious liquidation of the last few
years, especially as to foreign hold
lngs. The colossal war caught it, with
the market better prepared to stand
the strain than at amy time in many
years. The foreigners, with their mora =
forums in effect, especially desired the
continuance of the market on this side
for their further liquidation. But
there was no buying demand to meet
would have marketed"
1t seems, says the circular, and in
direct line with arguments from time
to time in this department, that some
times facilities and conveniences with
which We are familiar are not appre-
ciated until they are lost.
The stock exchange to many people
has seemed to be nothing more than a
tions under which it was closed showed
what a great market place it was and
what an agency for the distribution of
American securities.
The closing of the market place
stopped the dumping of securities, but
already a formida BILE Indebtedness had
been created. Furthermore. the mora
torium proclaimed abroad made our ex-
listing credits, to some extent, unavail-
able.
Credit Should Be Liberal.
This is not the time to lay emphasis
upon reserves. 1t is pre-eminently one
maintained.
The useful channels of distribution
for some of our most important prod
ucts are closed and time will be re-
quired to find new outlets. If domestic
industries are not to be seriously de-
ranged credit must bridge over the
interval until producer and consumer
can find each other again.
1T is of the greatest Importance that
unemployment shall not increase and
that the buying power of our people
shall be Maintained.
Fortunately our exports most affect
ed are staples which the world will
ultimately want and of kind not to
deteriorate in storage. This country
proper agencies for doing SO are
adopted"
Recognition is accorded to the wis
dom which placed the eAldrich-Vreeland
law on the statute books.
After Effects of the War.
AS. to the permanent effects of the
war in the United States. the subject
can be dealt with here only in sum-
| mary fashion. Over and beyond the
obvious losses or gains of this trade
or that, the economist sees the terri
| BILE waste of capital and lasting in
juries inflicted upon some of the lead
ing nations of the world. He knows
that such losses must necessarily fall
upon all nations, directly or indirect
ly The investment fund of the world
is a common fund; its growth means
that mankind will be equipped with
more effective means of production and
distribution, and that the common sup
ply of necessaries and comforts will
steadily increase. while losses from
thai fund mean that this progress
will be retarded. With savings dimin-
ished and enormous government loans
connecting for money, capital will cost
more in every market and for every
use,