Daily capital journal. (Salem, Oregon) 1903-1919, 1915-03-31
New York, March q. 1915.


Redundant money and more hopeful
views in regard to the war are working
out their inevitable influence upon
financial sentiment. Sharp advances
occurred this week in number of
stocks, CHIEFLY industrials benefiting
from war contracts and few of the
leading railroad shares. Some reces-
sions followed, owing to the disposition
to take handsome profits; but aside
from this development there is an un-
questionable change for the better in
The financial undertone.
The prime cause of this betterment
is the remarkable monetary outlook OF
the United States. Four influences are
at work promoting ease in the credit
situation. These are, C) a return of
currency from the interior, (2) contin-
ued gold iIports, (3) the lessened re-
quirements of business, and (4) the
great expansion Of lending power
among the banks resulting from the
new federal reserve system. A week
ago the clearing house bank reserves
in this city had reached almost $l40,.
100000, and this in spite of a big ex.
pansion in loans, which now stand at
$2,377 100000, against $2,079,0 100000 a
year ago. As this heavy expansion OF
| $500, 100000 in loans is certainly not
due to commercial reasons, it must be
credited to important financial opera
tions in which those of an international
character play an important part. This
! is but another illustration of the domi.
mating effect of the war upon this mar
ket. Our foreign trade is still exceed
ingly abnormal Our imports are very
light, while current exports are heavy;
the net result being phenomenal ex
cess of exports, which is being settled
partly by return Of securities; partly
by god imports which have amounted
to $40,000,000 on this movement, ant
| partly by the granting of liberal cred
its on foreign account, This upheava
in our foreign trade relations prom
lees 10 cortinuc for some months t
Gene; or at least until the end of thu
war is clearly in sight. The foreigi
exchange situation is also remarkable
because Of the conditions just referre,
to; the quotations for sterling benj
about cents in the pound below tn
gold importing point More god viii
doubtless follow. We have alread.
taken back two-thirds of the amour
we sent to Canada last year. Thi
country already holds an excessive sup
ply OF gold, estimated at over $l,S00
100000. Such a sum is vastly beyon
ont requirements, and has much to d
with the current low interest rates
which if maintained will bring on
period of active initiation. Since Eu
rope is badly in need of the preciou
metal, it is to our interest to allow i
to remain where it is most required
or where it viii do its best work, w
are thus in an excellent coalition TO
granting the extensive credits whic
the European governments are said t
be seeking in this market. The chic
trouble in our foreign trade lies in tn
great falling off in imports. Our tol
eign purchases from abroad have, o
course, been somewhat affected by de
pressed conditions at hme; but tn
main difficulty mas been in the stol
page of imports from Germany, an
the inability of Great Britain an
France to sell many Of the goods t
this country which come under ord
nary circumstances, because the wa
has either destroyed some industrie
or turned others into supplying wa
materials. As to exports, these hay
been swollen chiefly by the great dc
mand for food products, cotton an
war materials. The season for the ou'
ward movement of wheat and cotto
I is drawing to a close; but every ind
cation points to still larger shipment
Of munitions of war than. have mthej