The Alaska citizen., 1915-08-23
Business Outlook of Country Encouraging Wells Fargo National Bank Summary

A tIItuidT ltllsI ISSutu Dy tue
 Wells Fargo Nevada National bank. | of San Francisco. under date of July 15, contains the following rela-
 tive to the business outlook of the
 country:
 i X one billion dollar export trade l balance is now reality for the 1 first time in the history of the ! United States. As indicating how
 remarkable the foreign trade figures
 are, for the fiscal year ending with June. it may be said that the ex-
 cess of exports over imports this year was more than double that re- ! ported in the same months of 1914.
 while the largest previous export excess was s666, ,431 900, in 1908. What i is very striking-and contrary to
 what has been generally regarded l as the compelling influence-the
 unprecedented export balance this year was scarcely accounted for at all by war orders.' It was due primar- l fly to the huge exports of grain
 and cotton. The prospect is there i fore for a more remarkable foreign trade showing in the months to come when the exports of munitions reach full headway. Investigation has disclosed the fact that some of | the largest orders for army supplies
 will be ready for delivery about the time that agricultural shipments are usually heaviest. This situation brings up some interesting questions
 as to the measures to be resorted to by Europe for settling it's i'm
 Since Great Britain's huge war loan was announced on June 21, for eign holders of American securities are reported to have been liquidat- ing their holdings at the rate of B 900 900 or $10,000.000 a day. In spite of these phenomenal sales, how ever relatively low prices have pre- vailed for London exchange. The fact is that the rest of the world is so heavily indebted to this country at the moment, for purchases of food stuffs, raw material, munitions, and articles which neutral countries have been in the habit of obtaining in the central markets of the nations at war, that New York exchange on all the European centers has fallen ture course is highly problematical If the United States should be able
 therefore, to keep out of the war and the indications are that it will not become involved-this country is likely to attain a position of SUI preme commercial importance be- fore hostilities abroad are at an end. Inasmuch as the Bank of Eng lands gold holdings are about $1O0,- OOO,O0O below the figure of last No vember and it's loans at the highest recorded total it is hardly reason able to expect that Great Britain could afford to send us much more gold, especially since the English Banks special reserve holdings at Ottawa have been pretty well eX- hausted through withdrawals for New York
 The chances are therefore that the British government will either directly or indirectly arrange very large credits with American bankers, This will probably be done unless the new British war bonds are made free under the British law. There ap- pear to be rather formidable obJec- tions. however. to such exemption, But if it should be possible to offer the bonds in this country, with the understanding that American sub- scribers would not be forced to pay the per cent British income tax, it is probable that Great Britain would be able to pay a large portion of it's indebtedness through sales to us of it's new AZ per cent bonds. fortnight ago New York City sold $46,OOO,OOO fifty-year AZ per cent bonds on a 443 per cent income basis, and $25,O00,000 fifteen year serial bonds on 4.29 per cent in come basis The total loan was four times subscribed which indicates that notwithstanding the war uncer- tainty, there is an excellent invest ment demand for high grade bonds in this country.
 Now ordinarily, Great Britain ought to be able to borrow on terms at least as good as those obtainable by any other borrower. and it will be interesting therefore to see how the demand for what Is regarded as a premier security will be affected by these extraordinary war conditions.
 A very large amount of idle money awaits investment in the United States. Investors are showing great caution, however, seeking for the most part, only the best issues. Europe has sold back to this coun- try immense blocks of bonds, many