Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1915-01-01
United States Enters the New Year With Every
indication that all Obstacles to Pros
perity Have Been Removed
EUROPEAN WAR AIDS FOREIGN TRADE
Completion of Panama Canal Opens Wide Field
For Pacific Coast Commerce - Rail-
road Rate Advance Helps

The United States will enter the
new year with nearly every obstacle
to prosperity out of the way and with
many stimulants to prosperity in full
operation. The farmers have been
paid high prices for large crops.
Many lines of industry are working
full force full time to supply war ma
terial, sales of which up to Decem
ber are estimated at $500, 100000. Ex-
port demand for iron and steel is
steadily increasing since the railroads
have been enabled by the rate advance
to resume buying. General construc-
ton and building have revived and
will add to the demand. Merchants
in the grain belt are settling old ac-
counts and are buying more freely
to meet liberal buying by their Gus
toners. An increasing demand for
every commodity seems to be the nat
ural consequence.
There is every reason in basic con-
ditions why business should flow in a
full stream. With all it's faults, the
Underwood tariff is fastened upon the
country for at least two and proba-
bly, four or five years. Hence our
manufacturers must adapt their bust
ness to it and make the best of it.
They are being aided in this adjust
ment by the war, which has cut of
a large measure Of foreign competi-
ton at home and has offered to them
a splendid opening in foreign mar
kets. Opening Of the regional banks
has inspired confidence in financial
conditions, has coincided with If 1t
has not aided in, the opening of a
period Of easy money and has assur-
ed the country of volume of money
corresponding to the volume of busi-
ness. The antitrust laws are the
last legislation affecting business to
be attempted by Congress for at least
another year and probably during this
administration. Business men are,
therefore, safe in adapting their meth
DDS to those enactments. The ad-
vance in railroad rates establishes
the principle that public regulation
is not inconsistent with a fair profit
on capital. That the spirit OF this
decision is generally abroad Is noted
by the Boston correspondent OF the
New York Evening Post In the re-
mark that there is ian increasing
tendency on the part Of courts and
public service commissions to stress
the fact that business enterprises
must he allowed sufficient profit to at
tract new capital"
Reopening of the Stock Exchange
has been followed by a considerable
volume Of European selling, but the
minimum prices set by the exchange
have prevented sales from becoming
as extensive as was feared. On the
other hand. the London agreement
that banks should be at liberty to call
loans whenever the collateral rose to
the level of July 27 has prevented
a rise to that level, since such a rise
would bring a flood Of selling orders
Thus the market has been operating
under a maximum as we'll as mini
mum price list. London admits that
even within these limits, there have
been realizing sales from Europe.
partly because banks desired to in
crease their liquid resources. Assur
ance given by the rate decision that
railroads will be permitted to earl
fair income and that industries de-
pendent on railroad prosperity Will
profit by the advance may we'll check
the foreign selling movement.
The case of the money market is
such that the open market rate has
declined more rapidly than the re-
discount rate set by the reserve
banks. which have reduced the rate
in the first month of operation from
6 to s per cent. and yet have made
an insignificant amount of rediscounts
The low rates are recognition OF
a period of easy money, but this has
been caused by small demand. AS
business revives demand will grow,
hut the Federal reserve system pro-
vides that volume Of money shall
grow in proportion and secures us
against gold exports unless an ad-
verse trade balance warrants.
We are more likely to import than
to export in the coming year. Our
exports in the expiring year reached
the unprecedented total of $200.OOO'-
900 hut our balance of exports over