Bisbee daily review., 1915-09-09
ENCOURAGING IS STATE
MENT OF BANKER
Continued hom Poeo u

CONTINUED hom Poec u
have been suffering from four-fold
burden Of decreased tonnage, decreas-
ed freight rates and the increased
costs Of labor and money, but they
are pluckiy overcoming their difficult
ties
As a whole, production is irresist-
IDLY Increasing; unemployment isl
slowly and steadily decreasing dis
tribution is quietly broadening
The Unprecedented prices for some
of our agricultural and industrial
products have revitalized stagnant
labor generally, besides strengthening
the position of our most important in-
terest-farming The United States
has grasped it's unique opportunity to
become larger factor I'm information
al finance and commerce. Last fall.
when Europe needed the surplus of
our two most bountiful crops, wheat
and cotton, We harvested for the first
time, by a rare coincidence, over $780,
100000 bushels of wheat and gathered
over 100000 bales of cotton: hence
our amazing international credit trade
balance for the year ending June 30,
1915, amounting to $1O94,O0O.O 600
This immense balance has created
serious exchange problems But let
us not forget that over 100000 900 OF
this export excess as compared with
the previous year was caused by the
decrease I'm imports of raw material
in connection with our retarded indu-
strial activity accompanied by idleness
and suffering on the part OF wage
eaners in many OF our maaufactur-
ing centers.
Several of ur strongest assumptions
have proven erroneous. Our stock of
gold was not exhausted by goTeign
shipments; i'm fact International ey
changes gradually turned iu our favor
our cotton exports were not cut i'm
five as predicted, but exceeded 80 per
cent of the previous years volume.
Our copper industry was not ruined
but has been stimulated Our stock
exchanges have not been overwhelm-
ed by a flood of distressed American
securities sold at sacrifice prices by
European holders. but we have readi-
ly absorbed an offerings. At present
the iron market the baromete of our
national trade, is strong and active.
The New Pork Stock Exchange is
vigorously celebrating it's new lease
upon life with speculative orsy in
some issues which is causing thought.
ful men no little concern. This is
caused mainly by the Unprecedented
plethora of funds congested i'm New
York City where funds were loaned
as low as one per cent on call
"On November 16, 1914, the Federal
Reserve Banks were opened, starting
too late to afford relief during the fin
ancial stringency, as the retirement Of
emergency currency was by that time
in full swing. Unfortunately, this con-
traction was not sufficient TO meet the
reduced requirements of commercial
depression combined with speculative
inactivity, and for the past six months
at least we have been suffering acute
ly from redundant currency, a condi-
ton in many respects more dangerous
than stringency
The Federal reserve system had
not been fully tested The country
still awaits the action of two more
important factors in its operation,
namely, the entry of the State banks
as members of the removal of Govern
ment deposits from the Independent
treasury. It cannot be questioned that
all commercial banks. no matter where
their characters are derived, together
with the Secretary of the Treasury,
should finally cooperate with the sys-
tenn If we are to coordinate all ele-
menta in our sphere Of commercial FIN
ance.
We have reasons to believe that
our financial position viii strengthen
steadily as the European war pro
crosses; that our devoted President
viii be successful in preserving neu-
trality When war ends what viii il
mean to. us as a nation? We shall be
rich enough and generous enough to
contribute literally toward the help
of the needy; to assist I'm the recon
struction of some Of the ruined ma
tions; to give employment 10 the mass
of immigrants who win probobly rush
to our shores; TO compete vigorously
with the stronger nations i'm seeking
I foreign trade
Shall we have made heavy sacri-
fees and assumed serious risks for
the sake of humanity, or shall we
have ceased advocating the cause Of
the oppressed OF the other countries.
Shall we ind that on account of the
enormous profits exacted from the dire
necessities Of the belligerents we have
. devoted our attention more 10 materi-