The Detroit times., 1915-01-04
Country Faces New Year With
Signs of Developing Activity
sac ; Review
GOVERNMENT PRAISED
FOR EFFECTIVE MEASURES
Iomptly Executed Plans That
-6aght substantial Relief
foreign Trade Booming
The Nrnr,. REGARD.

'CottOn crop. bales, 1914 lS.s6e.000
1918 i1dSS.S0S ii1dSS.SS0S
TENports, lsl4.........S l,s6I $4,000
imports iissiits.' isis fS5t,S74g,SSS i.S5t,S4g,SSS
Commercial defaults. .its $24ees,9SSS 4e,9SS
Excluding linters I'll months.
After passing, between July and
December. through nearly every possi-
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 devel
oping activity" says the annual trade
review OF r. G.. Dun K Co.
Since the beginning of the modern
system OF credits in the middle of the
seventeenth century there has been a
succession, at regular cycle Intervals.
OF financial upheavals, but nothing APP
preaching in violence and extent the
overwhelming convulsion of the mar
kets in 1914 as the result of the sud
den outbreak OF the European tar.
Moratoriums In practically every ma
ton abroad: the closing OF the stock
exchanges In every important city,
confusion in all the processes or
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tons OF shipping withdrawn from the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
xuhl lad n a run on
torlc Bank OF England that was stop
ped only by the prompt action OF the
British government.
THE United States, although a 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 hrst was that this
is a debtor nation, vast quantities or
the stocks and bonds of our corpora
tions being held abroad: the second
was that we had practically no mer-
chant marine Ia 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
ernment war risk insurance was IN
stituted; a 800 000,0 600 gold 9ool was
formed TO protect the foreign eX-
change market; another fund OF $780,
600 900 was raised TO facilitate the
carrying and marketing or cotton, ana
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 It's
facilities for the conservation or re-
serves and the wider extension OF
commercial credits. Feeling It's way
cautiously, the securities market grad
ually overcame its early prostration.
and in December the New York and
other stock exchanges or the country
were re-opened without evidence or
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 a 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 its
attendant evils, increased. While the
entire country was affected, certain
sections suffered less than others. On
the whole, Ithe west, which was bene-
flied 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 the 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 10 a war
basis, that the great conflict abroad
began 10 lose some OF its overwhelm-
ing significance and our domestic
problems came more 10 the front.
Several developments served TO
mitigate the effects OF the war. Ono
was the institution OF the emergency
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 lat high rates for freight-and
the normal balance of trade in favor
OF this country was re.established,
rendering unnecessary special ar.
rangements. which otherwise would
have had 10 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
was 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