The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-10-26

OF interest, expense OF transportation
insurance, commissions, etc. Our nm.
usual foreign trade situation leads
me to repeat my former suggestion
Of establishing an International clear
ing house for gold. composed of the
leading banks in the United States
and Europe which should deposit q
suficiently large mount OF gold on
each side Of the Atlantic, issuing In
ternational clearing house certificates
and drawing bills Of exchange against
the deposits. This gold could be &C.
counted as a part OF their reserve II
in their own vaults. BY means OF
such an institution the use and trans.
fer of certificates OF deposit would
take the place of gold shipments,
Moreover. 1t would be easy to devise
a system whereby such transfers could
be made by cable. The great banks
Of Europe are steadily increasing
their gold reserves. The Bank OF
England has the largest reserve in
its history. The Bank OF Germany
has also largely increased its supply
Of gold. Our gold exports for the
twelve months ended December have
been $175,000,0 O0. Deducting our i'm
ports of over s57, 100000, the net ex
cess OF exports for the twelve months
has been about %$1s.000,O0o; not a very
alarming outgo. considering the large
stock of gold held In this country and
the good 1t has effected abroad.
The local money situation continues
to improve. Bank reserves ire stead
lily rising. and the big deficit which
existed some weeks ago has practical
ly disappeared. Bankers, though dis
eliminating closely, are more liberal
in the granting Of credit. Foreign
exchange is decidedly easier and the
offerings OF commercial bills are In
creasing. Sterling cable transfers
are down to 1854 and cables on Ber-
lin are ever quoted at 81. Further
relief in the financial situation will be
afforded when the federal reserve In:
stitutions are opened, the indications
now being that the latter's operations
will begin IN or about December 1.
Further evidence OF Improvement in
the financial situation Is found in the
retirement Of clearing house certih-
Gates. Our foreign trade is gradu-
ally returning to more normal proper
lions. Increased exports Of cotton
and wheat are within sight, and any
other losses in the outward movement
promise to soon be made good by the
increased demand for American manu-
features and for war materials which
has come to us as a result Of the
European war. V
There is one other CLEAN OF en-
-couregement, and that is the rehear-
ing Of the railroad case. Concerning
this there is nothing new to be said;
yet under the present extraordinary
situation, and in view Of the great
strain upon railroad credit, 1t Is In
conceivable that the unfriendly att
tude OF the interstate commerce COM
mission towards the railroads will be
indefinitely continued. Home trade Ia
still very unsatisfactory, the general
tendency of the public to economic
ducts, while the restrictions placed
upon credit have of course much en-
barrassed new enterprise. The steel
trade is much depressed and running
below so percent Of capacity; largely
because Of inability Of the railroads
to buy supplies; partly owing how
ever, to the general lack OF conf
dence. The textile industry Is also
much unsettled by the cotton situa-
ton and financial derange-
ments. AS these disappear. improve
ment should follow. The present is
a time for prudent action. Neverthe-
less. there are many reasons for talk
ing hopeful views OF the future and
keeping in mind the fact that the
acute stage of the crisis has been
passed and that we are now fairly
started on the movement toward re-
adjustment and reconstruction. There
will be a big acreage Of winter wheat
which at good prospective prices
promises another year Of prosperity
for wheat growers.
HENRY CLEWS.
I'D .