Daily capital journal. (Salem, Oregon) 1903-1919, 1914-11-04
l2c; seconds, Zoe.
HENRY CLEws WEEKLY
FINANCIAL LETTER

New York, October 81, l9l4.-The
financial situation grows brighter al
most daily in spite Of the heavy Euro.
pean war cloud, This week there has
been marked progress in clearing up
the foreign exchange situation, and the
restrictions upon credit, foreign and do.
nestle, are being gradually lessened.
One Of the most striking evidences Of
improvement has been in the recovery
Of our foreign trade, particularly in eX.
ports, from the effects Of war shown in
the September statistics In that month
it will be recalled our exports declined
S62,OOO,000 and our imports SO 900, 900,
the loss in exports being largely in cot.
ton and the loss in imports being chief.
ly in manufactured products. Our ex.
port trade during the current month,
aud especially during the past week,
has been particularly active The in.
crease In raw products and war supplies
has Dcen very conspicuous. Cotton has
been going forward very freely; and
the announcement by Great Britain
that cotton will not be considered con.
traband, even to Germany, insures a
continued free movement of this staple.
This Of course will materially relieve
the cotton situation, and will also serve
to settle our foreign debit balance and
check gold exports, ~ the south,
when is largely dependent upon foreign
buying of cotton, this movement will
be particularly welcome, even il cot ~
does go out at very low price. The
proposed cotton loan Of Sl35 600 nm.
der Qle management Of a committee OF
the federal reserve board, has received
considerable support, although there are
some doubts as to It's legality. The
plan s meeting with much favor, par.
ticularly in the south, as q matter of
cNpedioncy In great emergency. The
federal reserve banks win open abo,t
two weeks hence. This insures addi.
tional relief aud ease In the monetary
situation. Barring any temporary local
stringoncy which might accompany q
transfer of funds to the federal insti
tutions, II is estimated that the reduc
ton m reserve requirements which will
follow this operation will result in AZ
expansion Of possibly B3OO,OOO,0OO il
loans. This should insure continued
ease in money, and Will materially faeil
| itate the retirement of clearing hous,
certificates aud emergency currenc,
which have already been Withdrawn tt
considerable extent,
| These five conditions money
better foreign exchange situation, early
opening Of the federal reserve banks
improvement In our export trade aud O
good harvest--aro the five brightest
and most encouraging features In the
American business aituutiOn, which u
other respects is still very unsatisfaC
tory aud passing through critical per
/ iod. II IN not desirable 10 dwell toe
strongly upon the discouraging side OF
affairs yet Il would be dangerously
foolish 10 ignore the many unsatisiac
tory conditions Bank clearings are still
running 2i per cent below n year ago
the decrease being greatly emphasized
Iby suspension of the various stock aud
commodity exchanges Railroad earn
ings are unsatisfactory, those reported
for The month OF September showing d
loss Of per cent, while for the first
two weeks Of October the losses hay,
been from l2 to 10 per cent, Building
operations are running about one.thirt
below last year, Dividends have heeI
cut or passed by mn unusually arg,
number Of industrials, Tho railroads
II may be noted with satisfaction, hay,
maintained their regular payments re-
marhably well. There has been fur
ther increase IN the number Of idle ear
aud nlso In business failures. The stec
trade Is now owsrunning less than 80 pei
cent cf rs capacity and prices continu,
weak The textile industries were mucl
derangcd by tae war and the fall II
cotton, but are now showing create
steadlncss and activity Such facts nj
these are already too familiar The!
chiefly reflect the shock Of the Euro
pcan war upon the United states.
Throughout the wheat belt prosper
lity 10 everywhere In evidence, In spit
Of the war Optimism reigns supreme
There. The south, moreover has nov