Evening star., 1914-12-13

| opening of all the important STOCK eA-
changes of the country Indicate tnat
the feeling of confidence in the future
is extremely satisfactory; that con-
ditions have sufficiently mended In the
interval since the closing of all marts'
July 80, for business in securities to
resume, even if in a somewhat re-
stricted manner, its normal functions.
| Some Of the Regulations.
| While the i'll effects of the war, by
Congress and by state lawmakers of
business; the inability of railroads te
make both ends meet, while yet de-
voting a sufficient percentage of their
earnings to upkeep of equipment and
maintenance of way and the restricted
export trade of the country still waits
betterment. yet sufficient recovery has
| been made to demonstrate that the
! business interests are confident. that
| they rely on the near future to solve
most of their problems and believe
that the most serious restrictions will
| be removed in a comparatively snort
| time.
| In the language of the market place,
| business is Tong in the United States,
and looks forward to enlarged operations
and activities.
| The great problems demanding at
tention when the foreign war broke
| out have been cared for. The goid
pool, with but 25 per cent call on the
subscriptions, has returned one-ffth OF
this amount: the cotton pool OF slSo'-
| 900, 900 has been formed and signatures
and seals of subscribing banks are be-
ing received-the meanwhile cotton is
moving more freely toward consump-
tion and the prices have materially re-
covered.
Our so-called big debt to England
ably England holds millions of Amer
ican securities, but with no agree
ments as to the payment of them
holding them like other shareholders,
terprises. Many of these investments
may now be sold at much better prices
than current July 30 but this very fact
is likely to prevent foreign liquida-
ton.
Clearing Decks.
1t looks very much as if the decks
| were being cleared; not all at once,
but very gradually for resumption OF
normal business conditions. The United
States has not been left unharmed by
the European war in it's progress to-
day but the great resources of the ma
tion have not been weakened; its pro-
ductive power has not been impaired
by the war
If there is a disposition to economist
on the part of the public it is nothing
more than the trend of the times. when
every one is, to certain extent. IN
f1uenced by the immense destructive
ability of the armies of the great ma
! tions in contradistinction to the help
full constructive activity of their ar
tisans in times of peace, and the feel
ing that this is a time for carefulness.
funds in the savings banks and else
where where they are available in
arteries of trade.
While business is preparing for i'm
provement. one need hardly look for
anything of a boom nature. Immense
destruction of values is going on daily,
capital therefore for the rebuilding
| and rehabilitation will be urgently de-
manded and the betterment will go
Much good would result from a de-
cision favorable to the railroads in the
rate case, and this is confidently ex-
pected and is being, in a measure, dis
counted.
On Good Foundation.
Rehabilitation now going forward
will be on a solid foundation, new ven-
lures must of necessity furnish more
of the needed capital and expect less
banks.
Until such time as the federal re-
serve act is amended to make more
liberal the character of the paper that
may be rendered for rediscount the
new system cannot give much relief
to the situation.
Under the provisions of the Aldrich-
Vreeland emergency currency meas
! ure banks could and did offer and
have accepted bonds and 'other securi-
y1e,b r. ND icto Rf
the reserve aet only commercial paper
can be rediscounted, the proceeds to
be used in actual merchandising, with
certain provisions for other loans, but
securities are not available for redis- :
count.
Government Deposits to Be With
Secretary McAdoo has also announced
his intention to deposit government
funds with the regional banks of the
reserve system. withdrawing them
from national banks. While this might
be in line with keeping the regional
banks we'll supplied with money, it
seems to be reducing the available
funds for use as these deposits cannot
be replaced in member banks of the
reserve system by rediscounting OF the
sa me securities-the funds being there
fore locked up, until there is amend
ment giving more liberty of redis-
counting, or the banking community
forces such change in custom that
there will be an abundance of COM
mercial paper for rediscount-
During the coming week local ma
tional banks will repay over a million
dollars to the Treasury of tax money.
All national banks having government
deposits. practically all but one in the
city, will be called upon to return,
some 20 and some 40 per cent of the
tax money in their vaults. The banks
which were permitted to retain all
funds in October will pay 40 per cent,
while those who were called upon to
nav 20 per cent in October Will have
bur 90 per cent more to pay Tuesday
next when the repayments are to be
The million-odd dollars to be paid in
dividends and interest does not all come
out of local institutions, but the cash
viii find its way back into the banks
Just as quickly as possible.
There is plenty of money in the banks
for supplying legitimate inquiries. but
bankers are are not making many ac-
commoda tions other than to their own
trade. little real estate money is
found here and there, some indications
of betterment in this department, where
improvement will be welcomed.
Saving and Prohibition.