Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1915-01-08
LETTER ON TRADE CONDITIONS
Business Forecast for January, 1918,
Issued by Eau Claire
National Bank

In attempting to review the busl-
ness of the recent past and the max
| ing of a statement outlining the pres
emf fundamental condition OF the
country commercially, We are com
PEELED to borrow word from the
| sick-rOOm in order to convey clear
impression OF the present SITUATION
business is convalescing. The I'M
Drovement is clear and positive but
business is still weak In spots and
still demands nursing. There is no
danger of q relapse unless someone
gets so enthusiastic as to try to start
real boom. Such a move would I'M
questionably result in disaster.
Our floating debt to Europe at the
time the war began has been Vari-
ously estimated at from 25O to 4oo
millions Of dollars. This did not take
| into account what might have been
owing to us from these countries in
which mOratOriumS were declared
Since the beginning of the war, our
| net shipments of gold and merchan-
disc have created foreign credit to
our account of something over 22O
millions of dollars up to December
| first. Our 3 cotton exports are in
creasing and it is quite safe to as
sumo that when the balance is struck
at midnight on December 31st, 1914,
this country will have no floating
debt to other nations, which means
that it will owe no more in trade
balances than are owing to it. All
then must pay their debt balances in
gold or exchange credit slips with
each other and wash the slate.
It is a matter of financial and com
mercial history that Europe buys
stocks, bonds and commodities of us
when prices are lowest and sells
them to us when prices are highest.
She has followed this method since
the United States became a nation
and will probably follow it until we
acquire the courage to buy them
when the bottom is out Of things and
sell when the boom is on. The Eu-
ropean method is sound as evidenced
by the commercial success Of those
| countries compared with which We,
as a business nation, are young and
inexperienced.
| Our November exports amounted to
! 2C6 million dollars compared with 1873
| in October and 246 millions a year
ago. The falling off in exports Of
40 million dollars compared with last
November was due to the decline Of
| Il million dollars in cotton exports
alone, showing that our exports, ex-
cept cotton, gained nearly 80 millions
over last November. Our imports
were 1876 millions compared with 1873
| in October and 148 in November of
| last year. Our favorable Trade bal
ance for November was 70 million
dollars compared whit Sc millions in
October and 81 millions in November
of last year.
Bank Exchanges for November to-
| tailed II billion dollars compared with
! IA billions year ago. The decrease
in New York City was nearly 20 per
cent and for the remainder of the
country, 10 per cent.
Divident and Interest disburse-
ments for December will amount to
nearly 101 million dollars compared
with "a millions last year. As millions
Of this will be dividends compared
| with AZ millions a year ago and IS
millions will be interest compared
with 81 millions last year. This is
the first month since August that
we have been able to report divi-
| dends in excess of the same month
| last year. Dividends and interest for
the coming year will probably ex-
coed 1,400 millions of dollars, and
| this, together with maturities of over
| 500 millions, calls for financing, re-
funding and cash payments of 200
million dollars for each month of
1915, AS the larger part of this is
railroad business, the business year
1915 will lean heavily upon railroad
conditions.
The Eastern Freight Rate advance
recently allowed by the Interstate
| COmrnnrcn Commission while in,nor