The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-07-26

OF the fact that the market for these
foreign obligations on this side VIII
necessarily be limited. OF course, the
credits thus far granted have imposed
no financial strain here, and they could
undoubtedly be greatly expanded
without harm; but new factor Ut
great Importance Is being introduced
into our finances, one with which
American bankers and investors are
not entirely familiar. and the handling
OF this problem successfully will re-
Iquire the greatest prudence and the
most skillful foresight The best and
most natural adjustment would be q
GRADUAL return OF American securities
from abroad which investors here
would doubtless absorb, and which
foreign holders could realize upon to
better advantage than upon their
home Investments, for which there IL
fonly an Indifferent outside market. A
further return of American securities
here would do no harm. We have
plenty of funds to invest; but tho
owners are shy Of new projects, and
inclined more to shares Of we'll estab-
lished concerns, whose market values
have been sustained in spite of pres
ent adverse circumstances. There is
no doubt about one fact, and that Ia,
American stocks, railroad or indus
trial. of the better class are now the
most desirable and most substantial
OF any in the worlds markets. Our
growing resources. financial. industrial
and commercial, as we'll as our free
dom and distance from European dis
tributions entitle them to preference
above all others.
Home conditions are generally sat
|isfactory. The crop outlook Is partic-
ularly so. Some deterioration has
taken place. as usual in the summer
months, and more may follow; but y
bumper grain crop is now almost
within reach. and the American farin-
Ter is practically sure Of good demand
and good prices for all food products,
which mean another season Of PROF.
|perity. The south is naturally dis
|turbed over the cotton outlook, pos
|sibly more SO than necessary. War
has unavoidably deranged the cotton
market. as it has many other staple
commodities. 1t is the south's main
product, and the restrictions imposed
upon 1t by Great Britain have very
naturally created irritation. But such
are unavoidable under
the circumstances, and the British Sov-
Iernment has in numerous instances
lgiven evidence of desire to interfere
with American commerce as little IS
possible; especially in not putting co..
ton on the contraband list. It is inn
possible to escape the arrangements
OF the war; and as long as the sea IS
kept open we cannot make serious or
very effective complaint. A tremend-
ious wastage Of cotton is going on in
the battle fields of Europe-not -
speak Of the amount used in makins
explosives, which Is estimated at from
one to one and one-half million bales
and later on there will inevitably
be heavy demand for the staple TO
fill the void now being created. The
steel trade is very active, chiefly, of
course. the result OF war munition
orders. Prices are rising. and this
great industry is certainly enjoying
more prosperity than for several years
The dry goods trade shows decided
Improvement, many buyers being In
this market who are placing liberal
orders for the new seasons cotton
fabrics
On the stock exchange there has
been a fair degree of activity, and
PAASSS SOAtiAuCs " uuCludlc, d6 Iucy
must while our relations with Germany
and Mexico continue in such a critical
state. The war stocks lead all adj
lvances, and these shares now consti-
tute fully one-half, II not more, of the
daily transactions. Considering the
leadership. the feverishness of the
market calls for increased prudence in
such operations, speculation having
run into wild and in some instances
dangerous excuses, while well esta5-
lished railroads and industrial shares
have been largely neglected. IA favo--
able factor is the continued broa /
market for bonds, which, with easy
money and reasonably satisfactory
crop and business conditions at home,
constitute the satisfactory side of this
market. Much depends upon the out
come Of our negotiations with Ger
many. which, for the time being, are
an unsettling factor. Unfavorable
dividend rumors and the spread Of la.
Dor troubles must also be regarded as
disturbing influences The situation,
however, Is likely to continue t.
change almost daily.
| HENRY CLEWS.