The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-02-22
Foreign Trade Is Now Being Con-
Quoted Under very>Abnormal and
Very Unstable Conditions,
Says clews.
BIG EXPORT BUSINESS
It is Due to the War and Promises
to Continue as Long as the Con-
fIict RACES in European
Countries.

+ |
f1uences continue to dominate the |
stock market. This week sterling ex- /,
change broke to 4.79, the lowest figure
recorded. A sharp recovery followed
upon rumors that large foreign govern
ment credits were to be established on /,
this side; but the crisis in exchange
necessitated fresh adjustment to war
conditions, which are now being more
keenly felt than at any time since the
struggle began. Our foreign trade is |
being conducted under very abnormal
and unstable conditions. In December
the loss of imports was about 100000
600, chiefly in raw silk, wool, coffee,
copper and textiles. Exports during
the same month Increased about $12.-
100000 over last year. Considering
the heavy shrinkage in outward bound
cotton, copper and oil, this increase
was remarkable; being entirely due to
extraordinary shipments of foodstuffs
and war materials. The net result Of
DEFENDERS foreign trade was an ex-
cess of $3.50, 100000 in exports. The
balance has been steadily growing
during January and February; SO that
lit Is now estimated that the excess of
exports has arisen considerably above
| 5000, 100000 since the beginning of the
war. OF course the exchange marke.
| Is demoralized by such unusual con-
ditions, and emergency measures were
necessary. The great banks Of Europe
are unwilling to part with their gold
holdings for obvious reasons, and it
| is not to our interest to embarrass
them. by drawing gold, especially as
our own stock is more than ample
for requirements.
London displays phenomenal finan-
cial strength, not only in it's ability
| to finance Britain's war, but also by
its capacity to render financial as
sistance to the allies. Under the cir
icumstances the most rational relief to
1 the exchange crisis suggested, is the
establishment OF big credits in this
market for Great Britain, France, or
Il any OF the allies whose credit may
| be satisfactory. The belligerents will
continue to want foodstuffs and war
materials, and we are fortunately in
a strong enough position to easily
give the credit necessary on such pur-
chases until more normal conditions
are once again in sight. For us at
least 1t would be far better financing
to grant the needed credit, than to
force gold or security imports in pay
ment at this time.
General business Is again marking |
time. The spirit Of confidence which J
began to develop after the fall elec-I
lions is still maintained, but so far
as positive action Is concerned, prog
ress is exceedingly slow. War i'm
poses strong restraints. The volume |
of business shows only slight gains. |
Industry is somewhat more active,
~. a.
gree OF improvement. Orders are
being placed with more freedom by the
railroads for steel products, and to
this extent improvement can be re- |
ported in the great basic steel indus
try, all of which is at least encourag- .
ing and strengthens the belief in a I
permanent turn of the tide The build |
ing trade also shows partial signs of
recovery, the easier conditions of the
money market and the low price of
many raw materials serving to some
what stimulate constructive opera
tions. The most prosperous sections
of the country continue to be the !
agricultural districts, where the good
harvests of last year and the high /
prices obtained for agricultural pro-
ducts are making certain regions ex-
ceedingly prosperous. 1t Is quite nat
ural that the communities and indus.
tries dependent upon agriculture
should share this prosperity. The re-
suit is that the country's trade as
whole is in spotty and somewhat
confused condition. Some interests
are of course also profiting from the
war Nevertheless. these orders when
all combined will constitute but a
small fraction of cur total domestic
and foreign trade. Bank clearings are
still running IL per cent to Is per cent
below last year. Idle cars show a
large, increase compared with Noven,-
ber Railroad earnings are unsatis-
factory In December the decrease on
the roads reporting was 10 per cent
and In January their earnings showed I
practically no improvement, but a. the
benefits of the recent concessions IN
rates begin to appear, better results
should follow.
The investment situation is un-
changed. There has been fair de-
mand for new issues: quite as good
as could be expected in view Of many
perplexing conditions. The possibil-
tues of large foreign demands for new /
capital appearing on this side keep
the investment outlook somewhat un-
settled 1t is quite certain that to
Offset the losses from war there will
be heavy inroads upon the supply of
new capital, and good rates Of interest +
are equally sure to be demanded ,
Quite a number of securities, however,
can be selected in this market which
already offer handsome returns to
the purchaser, and the growing belief
OF brighter times ahead seems to be
an effectual barrier against any i'm
pcrtant decline. The market is thor
oughly liquidated and foreign selling