The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-12-21
Shown by the Re-opening Of the New
York Stock Exchange and the
Maintenance of Prices
for Leading Stocks.
-.A-a INCREASES HELP
Attitude of the Commerce Commits
sion Toward the Railroads Ex-
zeoted to be a Big Help
To Business.

NEW YORK, Dec 19-The stock
exchange made an excellent start at
its final reoEening. The financial dis
trict, it should be remembered, has
been passing through period OF IN
paralleled depression resulting from
the war That depression was not al
lowed to express itself in values owing
to the shutdown of our exchanges and
the establishment Of minimum prices.
For the same reason prices did not
have full opportunity to reflect the
remarkable recovery in confidence
which has taken place during the last
two months. A considerable rise cc-
Cured during the first few days of the
week, but this was quickly checked
by profit-taking and evidences of skill
full foreign liquidation. There was,
however, no rush OF foreign selling.
such as had been feared, and it does
not appear likely that there will be,
unless some untoward events Of spec
fal Importance precipitate such
movement.
The interstate commerce commits
sion decision granting the 5 per cent
increase In rates on eastern roads
with the exceptions specified, will
have far reaching moral effect The
exceptions include raiI-lake-and-rail
and rail-andlake rates; also the rates
en- bituminous coal and coke. An
thracite coal and iron ore and rates
held by unexpired orders Of the com
mission are likewise excerted-. Con-
fective stimulus. 1t marks a change
OF attitude of the commission toward
the railroads that cannot but be bene-
fetal Railroad credit viii be strength
ened, and the roads will be able to
make more definite plans for their fu-
ture. It is said the earnings OF the
roads will be increased about 40 to so
millions This is not large SUM. rela-
lively considered; but the action of
the commission is quite sufficient to
check distrust and ins--ire confidence.
One effect OF the decision will be to
create a more hopeful feeling in the
steel industry, or which the railroads
are the best customers; and it may be
hoped that thei- action will avert the
proposed reduction of wages in that
industry. The effect upon the stock
market was naturally encoura ging, al
though some caution was observed
until the results could be more def1n-
itely measured. The decision viii
also have a stimulating effect upon
business in general, and will aid to
counterfeit the depressing Influences
OF the war.
Beyond question the war is still the
dominating influence in this market.
An early end Of that colossal struggle
would cause sharp rise in security
va.ues; and conversely prolongation
of the war beyond what is anticipated
will be depressing. But, since the
worst has been largely discounted,
the effect OF disaster uron values
would not be SO pronounced as the
approach of peace, which some think
is nearer than generally supposed.
The possibilities of foreign liquidation
must however be kept in serious con
sideration. London as well as Berlin
is quite sure to send American stocks
back to US II prices on this exchange
are rushed upward too rapidly, as was
the experience during the early half
of the week There are many needy
sellers In both OF these markets. The
London exchange has not yet opened
and will not until the new year, go
that this market still offers the only
refuge for those in distress.
, The rresent war is causing fear
full waste of apital, and the enormous
will inevitably exert a heavy pressure
upon the worlds security markets
The worlds savings Will doubtless be
materially curtailed and the urgency
of war loans viii make It difficult to
secure capital for new industrial or
business enterprises. This means
that capital, or savings, for some time
TO come will command high rates On
I the other hand, We have an important
counteractant in the form of cheap
money. Funds are accommodating al
home and abroad, very largely as q
result OF the diminished volume OF
business. In consequence, short term
money can be more freely obtained
This will facilitate the carrying Of
good stocks which are already selling
at low prices and yielding much more
profitable rates than short term OBJ
legations. Our own bank reserves
have been greatly strengthened by the
operation of the new banking system
not to speak OF the return of fund:
from the interior and the lessenet
demands for commercial purposes
Funds are also comparatively abund
ant in London: and there is no long