The Washington times., 1914-11-22
IN LOCAL FINANCIAL CIRCLES

With the credit and financial ma
chinery of the United States, which
was SO thoroughly dislocated by the
war, placed on a safe and stable basis
by the establishment Of the Federal re-
serve banking system, the country ap-
pears to be already launching on the
period Of progress and prosperity which
students Of commerce and finance have
been predicting would ensue with the
termination of hostilities in Europe.
Throughout the country a feeling OF
optimism has been created by the In
auguration of the banking system,
which became effective Monday morn
ing in strict accord with the plans Of
the Federal Reserve Board. Already the
governors and directors Of the twelve
institutions have made a request OF the
board for permission to lower the dis
count rate, contending that business
would be greatly increased were the dis
count rate placed at 5 per cent which,
it is said, would be sufficient on all
maturities When the request for the
lower rate was made not all Of the
| member banks had made their sub
scriptions. transportation facilities hav-
ing delayed the deposits of a number
Of the rural banks. and the reserve
board was not inclined to inaugurate any
changes in the system until each and
every bank had made its deposit.
Many other circumstances are daily
arising which point to a betterment Of
conditions. The fore gn trade situation
has materially improved during the
past month. The returns for October
were remarkably encouraging The to-
tai exports for that month were $685.
ma c.,
Der. and exceeded imports for the
month by $57 900. compared with an
excess Of SIC 0OO, 900 in September.
Estimates made by Government off,
Gals In touch with the country's busi-
ness place the expenditures in the mar
Igerent countries o. Europe at 500, 900 con
for army supplies alone. This vast sum
is said to have been spent for horses,
mules, army clothing. and the like.
Meanwhile. more than eighty foreign
built vessels have taken American reg
istry and are engaged in carrying the
manufactures and foodstuffs of this
country to Europe and South America
Notwithstanding tbs fact there is said
at present to be a shortage of bottoms
available for use. and there is already
talk of the possibility of the Federal
merchant marine bill being called up
again Immediately upon the convening
or Congress. This rumOr springs from
the fact that enormous shipments of
grain are beng held at the American
seaports, awaiting transportation.
Aside from these concrete evidences
of Improvement. the American public is
find -ng announcement in the attitude
and expressions of President Wilson
In a letter to Secretary McAdoo a few
days ago the President declared that
this country is entering on a period
Of unprecedented prosperity. In the
same communication President Wilson
took occasion to speak strongly in fa-
vor of a more considerate treatment
Of the great railroad companies, the
stringency suffered by which has been
one of the most depressing factors in
the American business situation.
Monday the New York and New Or
leans cotton exchanges resumed busi-
mes after fifteen weeks of inactivity
Tomorrow the Chicago and New Orleans
stock exchanges will resume Prepara-
tions are being made for the opening of
other stock exchanges all over the coun-
try.
On Thursday it seemed that the long
inactive New York stock exchange
would again open its doors for a re-
stricted trading in bonds, but the board
Of governors. after a long session. aU-
nounced that there were yet .'insur-
rnountable difficulties" in the way. The