The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-12-15

consumers are starving themselves.
Railroads and all kinds of machinery
are being used pretty much as usual.
They are wearing out. In spite OF de-
preston, the country is growing fast.
New construction must be resumed.
Prices are very low, and when the
tide changes shrewd buyers will rush
in with orders and unavoidable actiy-
ity must follow. Moreover. the worlds
markets will be opened to us as never
before; for European plants will be
fully occupied for months y not years
to come repairing the unparalleled de-
vastation and losses in their own
markets. lndustrially then. we seem
to have reached the bottom Of the
downward turn; and the belief is
steadily gaining that recovery is not
far distant, It may not come with
any force before spring; but, If the
evidences of It's approach multiply,
the stock market is not likely to wait
until then before dfscounting results
A very important aid to business
recovery is the outlook for cheap
money and a resulting Improvement
in the credit situation. Dull business
is partly accountable for the surplus
of idle funds. though the mass of
emergency currency still in circula-
ton is largely responsible for the
present east. About one-half Of the
original issue, which at one time ex-
ceeded 1881, 100000, has been with
drawn without injury, owing to the
operations Of theanew federal reserve
system which released large portion
of the reserves and permitted an inn
mense expansion OF credit. No single
event has done more toward strength
enfng business confidence than the
establishment Of the new banking
system: the full advantages of which
have not yet been fairly tested or
appreciated.
Our foreign trade promises to have
good effect upon the monetary stu.
alton; inasmuch as increasing ex.
ports, the result OF larger shipments
OF foodstuffs and cotton as well as
foreign purchases of war material,
are giving us favorable trade bal
ance and tending to restrain gold ex-
ports without artificial interference.
Foreign countries would gladly draw
upon our plentiful stock of gold, and
the international trade conditions
which tend to keep the precious
metal here are naturally viewed with
much complacency. Briefly then, the
situation Is this:
We have amply discounted all bad
conditions, especially the war, for the
time being at least.
The country's finances are now
safely adjusted to the new basis.
The stock market has reopened
with reasonable restrictions and with
out the difficulties once feared.
We are now feeling the supporting
influence Of good crops, and the west
is consequently much more hopeful
than the east.
Legislative attacks upon big bust
ness promise to be sensibly moderat-
ed
Industry seems to be on the turning
point from extreme depression.
The federal reserve system has az
forded a new basis Of confidence.
The interstate commerce commits
sion is expected to make some con-
cessions to the railroads; the latest
report being that the full 5 percent
will be granted eastern roads.
An easy money market seems as
sured for some time to come.
Our exports are heavy.
There are no indications of the
much dreaded food Of foreign securi-
ties. and
The impression grows that the war
will not be as long as manv have ex.
pected.
Thus, In spite Of business depres-
sion and inertia, there are abundant
and sound reasons for indulging more
hopeful views Of the future. The re.
ported advance In railorad rates is
particularly important and encourag-
ing. The war of course may again
become dominating influence at any
time. Such a colossal waste Of life
and wealth is inevitably a worldwide
setback, but il is quite possible to
over-estimate it's detrimental effects
upon American affairs. Happily our
country is largely free from the dis
turbing event OF International poll
tics. Long may it SO remain.
HENRY CLBWS.