Daily capital journal. (Salem, Oregon) 1903-1919, 1915-01-20
HENRY CLEWS WEEKLY
FINANCIAL LETTER

improved. Money is redundant and
lpremises to continue easy for some time
to come.- The new federal reserve sys-
tenn, though not in full running order,
is working well and has already provid.
ed much assurance and relief. Clearing
House certificates have entirely disap-
peared, and the Aldrieh- -Vreeland EN-
ergeney currency is being steadily re-
tired. There is no lack of funds to good
borrowers; the accumulation being due
to dull trade, to the return of crop
money, to the lowering of reserve re-
quirements from 25 per cent to 2S per
cent, and to the fact that we are in po
sition to draw gold from abroad. To-
day we are loaning money to Russia,
Canada, Argentina, France Sweden and
elsewhere. The war in Europe and our
own strong financial position have caus-
ed striking shifts in the currents Of fin.
ance and trade, which will greatly
strengthen the prestige and power of
New York as an international credit
and money market. Many Of the trans
actions now taking place here are OF
, course the immediate consequence Of
the disturbance in foreign credit, and
when the war is over these factors will
disappear, not without, however, leav-
ing New York in position of advan.
tage considerably greater than existed
before the European conflagration
BY far the most encouraging element
in the present situation is our foreign
trade. Our exports are progressing BY
leaps and bnnds, due to liberal foreign
orders for war materials, to heavy ex-
ports of wheat at hign prices and 70
practical resumption of cotton ship
. ments. The outward movement on these
accounts is by no means at an end and
> the orders for war materials premise
} to run to even much larger amounts.
The effect Of this foreign demand Tor
I American products at a time when i'm
ports arc running comparatively light.
is 10 leave heavy excess of nerchau.
disc exports estimated at $ll0,000,O 600 IN
. december and as much as $40 .0O0O0O
IN the first week of January. If these
!, tendencies continue, conditions will soon
! favor a large influx of gold, unless
! Europe should send back American Sc.
J eurlties more freely than at present, on
unless European banks should under
I, take TO restrain the movement bv arti
ileial means, pais week we have been
d surprised by the announcement Of about
1 93,OOO,OOO Of g0d from China to the
9 United States. The concern responsible.
4 FOR this unusual movement explains that
{ TINS transaction was done through the
home office in New York instead of a.
/ usual through its branch office in Lon.
, don. A small consignment is ol the
g way from France, possibly for Cuba
Should New York draw gold from Lon
1 don-as is probable il British merchan
0 disc exports decline-it might como
I from Ottawa, where the Bank of Eng
0 land has a special deposit, or it may
come direct; though the Bank of En-
land would very likely oudeavor (,
neck any large gold movement in thi
. direction. The Russian government, J.,
q IS announced, has placed credit oi
n t21,0OOOOO in New York to be used fol
q payment Of war materials. France alsf
. recently deposited S2,000,000 in New
d irlI aud from both sources larger sum.
n are expected to follow, which mean,
" continued activity for certain America
industries.
"a Our industrial situation is stil some
y what spotty. As just shown. speeia
q hnes are enjoying exceptional acti3it,
c tWng to the war, and since there ~,
no signs of early peace this featur,
% promises TO continue for some time (,
q come The steel industry is enioyia,
somewhat better prospects; this bein.
@ due to the general spread Of hopeful
q ness, to better buying from the rail
70 roads since the rate decision and in q
@ small degree owing to foreign orders
. The steel trade, however, is still ia,
. below normal and prices while firmal
q are very low. There is also bettel
q feeling In the great textile trades
though here the conditions are some
n what mixed. Scene branches of th
q voolen industry have benefited by th.
0 war; others have been injured by the
q resulting interference vita wool SUI
s plies. Large importations of woolen,
a under thc new tariff have also mater
4 ially affected this branch of industry
. The cotton goods trade is in rather be-.
4 Ter fcm, cheap cotton being an import
n ant relief; while better export ORDER
/ lost by some Of tho belligerent conn
tries served to fiji in the lack of hom,
trade. Our textile trades have had many
n adverse conditions to contend against
y but most Of them now appear to be d
n matter Of history and the final adjust
y ment Of the Clafliu failure is an add
n tional element of encouragement. Ther,
" is one other stimulant somewhat Ioea
= in its effects, and that is the high price,
y obtained for wheat and all foolstuffs
y This is exceedingly satisfactory TO tn,
~ farmers producing these articles, an,
leaves those sections exceptionally pros
y porous.
N The railroad situation shows some i'm
N provement and managers have been de
n cidedly less pessimistic since the ad
v vance in rates, which will soon 10 int,
effect. During the past week there ha
been some Improvement in tae invest