The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-11-30

OF the war in Turkey and southeast
ern Europe. 1t goes without saying
that it is utterly impossible for the
world to- endure such Wholesale waste
OF life and wealth, and at the same
time preserve its prosperity Dis
tinct and distant as we may be from
European activities, we cannot entire
ly escape sharing European misfor-
tune. For years to come large share
of the worlds savings must be alb
sorbed in paying the cost OF this
titanic struggle. Savings out of which
comes all new capital will be unavoid-
ably reduced. In other words, there
will be less capital than usual for new
enterprises; and any marked revival
OF Industrial activity in any portion
of the world must mean an urgent de-
mand for money at good rates. Cash
or even credit may become temper
arily abundant, but genuine new capl-
tai, such as is derived only from saw
ings, will be relatively scarce for con.
siderable time to come, and will COM
name much better rates than before
the war.
These are the worst effects OF the
war from the economic viewpoint, and
they give only the darker side of the
picture. Let US now look upon the
brighter side. After every period OF
depression in public feeling, there
comes psychical reaction when the
worst has been fairly passed, and PES
simism invariably gives way to new
spirit Of hopefulness. The real ques-
ton is, have we fairly passed and
discounted the worst? 1t would seem
as il we really had. At home we have
been favored with all the important
advantages OF good harvest The
department OF agriculture tells us that
the production per acre OF all our
crops was 9.4 percent larger this year
than last year, and, % percent above
the ten-year average. This fact Is OF
vital Importance in the agricultural
sections of the United States. espe-
cially as our farming classes and
those dependent upon them are still
the principal element in our national
prosperity. We find the keenest de-
preston at our financial centers. Our
industrial centers have endured a de-
preston rather less severe: while the
agricultural districts outside OF the
otton belt have felt the reaction
much less than any other. Another
important consideration is that we
are about to open new congress.
with distinct promises of less hostile
legislation from Washington. If this
IS accompanied by policy OF fair play
to the railroads much will have been
done towards fastening recuperation
on this side OF the Atlantic. The cot
ton crisis is about over. anC much OF
the financial aid that was promised
will not be necessary. The same is
true OF the foreign exchange market.
Tue reserve banks made successful
start. and have already created high
ly important source OF relief In case
of future emergencies. All things con-
sidered. the financial situation In New
York has marvellously improved.
Money is abundant and credit is cav
Ter, the demand for commercial paper
showing steady improvement For
eign exchange is nearer normal than
at any time since the war began. Our
bank reserves have been largely ex-
panded by the new system, and both
emergency currency and clearing
house certificates are being rapiGIy
withdrawn. The latter policy should
be persistently followed in order to
check gold exports which will surely
follow on liberal scale II money be-
comes too redundant or too cheap.
Fortunately our export trade Is rally
ing from the blow Of the war, and IS
being further stimulated by heavy
war contracts. which are keeping
many of our factories busy Mean
while imports are comparatively light;
so that liberal excess of exports is
in prospect, which will tend to keep
down our foreign OBLIGATIONS and re-
strain gold shipments. Our own trade
already shows signs of having turned
the corner.
The New York stock exchange has
. decided to open on the plan so often
suggested in these advices. that OF re-
i'stricted and gradual resumption. At