The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-01-10

Tho Year 1914.
InEhsP passing. between July and
Oeoaznbor. thstugh nearly every posi-
hao esporienoe of adversely, except
taAal Of complete collapse, the new year
"Opens with business in tho United
6laEss rtsing above depression and
Cunfronting the future with new conf
Aonoa and with clear signs OF de-
vslop1ns activity. Since the begin
ming OF the modern system Of credits
h the middle of the seventeenth CEN
fury there has been a succession. at
regular intervals, of financial up
heavals, but nothing approaching in
violence and extent the overwhelming
convuision of the markets in 1914 as
the result OF the sudden outbreak OF
the European war. Moratoriums III
practically every nation abroad; the
dosing Of che stock exchanges In
every important city. confusion In all
the processes of money and exchange.
the commerce of the world democrat
ICED: 5000, 900 tons of shipping with
drawn from the ocean thoroughfares
Of trade--theSe were some OF the In
slant developments Of the war, tbs
declaration OF which led at once to
q ran on the historic Bang OF Eng
land that was stopped only by the
, prompt action OF the British Govern
rnent The United States. although Il
neutral country, suffered almost as
much in business way as the nation
actually engaged In the conflict. Three
things rendered our position especial
ly serious The first was that this Is
a debtor nation. vast quantities OF tn
stocks and bonds OF our corporations
being held abroad. the second was
that we had practically no merchant
marine in the foreign trade. and our
ASzVrN 81 b. hran eArz enI
with complete extinction. while our
principal p-cotton-~thoGgh iarg
beyond precedent was cut Oft from TIA
greatest foreign consuming markets
hut with admirable self-control. cour~
age and wisdom, the National Gov
eminent. with the patriotic co-opera
ton of bankers and merchants. NJ
once planned and carried into effec-
tive execution great measures or relief
Foreign ships were admitted TO Amer
lean registry: Government war risk in
surnnee WAS instituted; "a Sl00. 600, 600
gold pool was formed to protect the
foreign exchange market: another
fund Of tIao.o eco was raised To
facilitate the carrying and marketing
Of cotton, and other emergency steps
Were taken. While these heroic meas
uSes were being conducted, the nation
proceeded with the esta h,lshment of
its new Federal Reserve Bank sys-
rated with all it's facilities for~the con-
eervat1on Of reserves and the wider
extentaon Of commercial credits. Feel
ing - way cautiously. the securities
market gradually overcame Its early
prostration, and In December the New
York and ether stock exchanges OF
the country were reopened without
evidence OF extensive liquidation. while
the cotton and coffee exchanges
also resumed business. Money be-
came easy and exchange more normal
and the whole financial machinery OF
the country resumed its regular and
. orderly movement
Domestic Trade Suffers.
Naturally. AZ a result OF the extra
ordinary events abroad. domestic
trade suffered severe depression; bank
clearingS and railroad earnings de.
cfined heavily: the number OF failures
multiplied and unemployment, with
its attendant evils increased, While
the entire country was affected, GER
tain sections suffered less than others
On the whole. the West. which was
benefited by the big grain crops
notably the record breaking yield Of
wheat. marketed at high prices, was
/, most favorabiy. while the South was
severely hurt by the cotton collapse,
and the East by the prostration of
foreign commerce and the suspension
OF the marluets for securities. AS
the year closed. however so far had
the markets adjusted themselves to
q war basis. that the great conflict
abroad began to lose some of its
overwhelming significance and our
domestic problems came more to the
front. Several developments served to
mitigate the effects Of the war. One
WAS the institution Of the emergency
measures already referred to. Another
was the immediate appearance Of
enormous foreign orders for American
breadstuffs and other supplies for the
use Of the contending armies and their
dependent populations Exports grew
to. large proportions---every available
ship being pressed into service at high
rates far freight-and the normal ball
ance OF trade In favor OF this country
was re-eata biished, rendering unnec-
sessary special arrangements, which
otherwise would have had to be en-
tered into to prevent an excessive
drain OF gold from this country. In
the last north of the year the de-
ctsion OF the Interstate Commerce
Commission in the rate case was o
constructive development OF much inn
portance. While the railroads did not
obtain all they asked for. the decision
Waa notable as Indicating change
OF sentiment In regard to corporate
Interests.
Commercial Failures
Preliminary statistics of commercial
failures In the United States during
ASA, m reported to r. G. Dun &Co.,
indicate = heavy expansion In tho
country's business mortality as COM
usred with tbs preceding year. Total
ineclv1ncies numbered 1904 and In.
voIvsd no less than $s54.06s.025 o.
daafAsa1tia in4shtednSss, against ls.aS1