The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-01-02
Country Faces New Year With
Signs of Developing Activity
IS buns Review
GOVERNMENT PRAISED
FOR EFFECTIVE MEASURES
Promptly Executed Plans That
brought Substantial Relief
Foreign Trade Booming
The Year. Record.

'Cotton crop. bales. 1914 l5.966.o00
~ 1913 ltlSS.9S9
tExports, 1914. ...e.....s s7,ssO,Ooo
1919 2.290, 1900 0S
imports i 1914, i.s0tSIySSS
Commercial defaults. ,its s5te5s,09o
Excluding linters. ia months.
After passing, between July and
December, through nearly every posi-
BILE experience OF adversely, except
that of complete, collapse, the new
year opens with business in the Unit
ed States rising above depression and
confronting the future with new con-
fidence, and with clear signs OF deyel
oping activity" says the annual trade
review OF X. G.. Dun & Co.
Since the beginning of the modern
system OF credits in the middle OF the
seventeenth century there has been
succession. at regular cycle intervals.
OF financial upheavals, but nothing ap-
preaching in violence and extent the
overwhelming CONFUSION OF the mar
kets In 1914 as the result OF the sud
den outbreak OF the European var
Moratoriums in practically every ma
ton abroad. the closing OF the stock
exchanges in every important city
confusion in all the processes OF
money and exchange: the commerce
of the world demoralized: 100000
tons OF shipping withdrawn from the
ocean thoroughfares OF trade--these
were some OF the instant develop
ments of the war. the declaration OF
which led at once TO run on the his
toric Bank of England that was stop
ped only by the prompt action OF the
British government
The United States, although neu-
trail country, suffered almost as much
in business way as the nations actu-
ally engaged In the conflict. Three
things rendered our position especi-
ally serious. The first was that this
is debtor nation, vast quantities or
the stocks and bonds OF our corpora
lions being held abroad; the second
was that we had practically no mer-
chant marine in the foreign trade, and
our commerce seemed TO be threat
ened with complete extinction. while
our principal -cotton--though
large beyond precedent, was cut on
from its greatest foreign consuming
markets. But with admirable self
control, courage and wisdom. the ma
tional government, with the patriotic
cooperation OF bankers and mer-
chants at once planned and carried
into effective execution great mea-
sures Of relief Foreign ships were
admitted TO American registry; gov
eminent war risk insurance was in
stituted a 800, 100000 gold 3ool was
formed to protect the foreign eX-
change market: another fund OF Sl3O.-
O00. 600 was raised 10 facilitate the
carrying and marketing OF cotton, anu
other emergency Steps were taken.
While these heroic measures were be
ing conducted, the nation proceeded
with the establishment of its new red
eral reserve bank system, which was
successfully inaugurated with all its
facilities for the conservation or re-
serves and the wider extension OF
commercial credits Feeling It's way
cautiously. the securities market grad.
lually overcame its early prostration.
and in December the New York and
other stock exchanges OF the country
were re-opened without evidence OF
extensive liquidation. while the cotton
and coffee exchanges also resumed
business. Money became easy and
exchange more normal. and the whole
financial machinery OF the country re-
sumed its regular and orderly move
ment.
Naturally. as result OF the extra
ordinary events abroad, domestic
trade suffered severe depression; bank
clearings and railroad earnings de-
/ clined heavily; the number OF failures
multiplied and unemployment, with It's
attendant evils, increased. While the
entire country was affected, certain
sections suffered less than others. On
the whole, the west, which was bene-
nted by the big grain crops, notably
the record.breaking yield OF wheat,
marketed at high prices, was most
favored, while the south was severely
hurt by the cotton collapse, and the
east by tho prostration of foreign
| commerce and the suspension OF the
markets for securities. AS the year
| closed. however. so far had the mar
kets adjusted themselves TO war
basis, that the great conflict abroad
| began 10 lose some OF its overwhelm-
| ing significance and our domestic
| problems came more to the front.
| Several developments served TO
! mitigate the effects OF the war. One
/ was the usLllullOH VI Ilc eluciB chNy
measures already referred TO. An
other was the immediate appearance
OF enormous foreign orders for Ameri-
can breadstuffs and other supplies for
the use OF the contending armies and
their dependent populations. Exports
grew TO large proportions-every
available ship being pressed into SER
vice at high rates for freight-and
the normal balance OF trade in favor
OF this country was re-established,
rendering unnecessary special ar.
Irangements, which otherwise would
have had TO be entered into TO pre-
vent an excessive drain OF gold from
this country In the last month OF
the year the decision OF the interstate
commerce commission In the rate case
Twas constructive development OF
much importance. While the rail.
roads did not obtain all they asked
for, the decision was. notable as In
dicating change OF sentiment In re.
gard to corporate interests"
Some 100000 gypsies wander about
Hungary and are regarded as a dan