The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-02-15

! dNu 9GFenyln
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running very light. owing to the inter
ruption Of supplies by the war; and
In the week ending February 6, the
excess OF exports over imports, was
estimated at, $S7.O0O,0O0. AS a re-
suit OF these international operations,
/ foreign exchange has again declined
to the lowest point since 1907. Gold
imports from China and Canada are
coming at a moderate scale, and larg-
er amounts, would follow were It not
4 for the establishing of the foreign
credits referred to above. It is esti-
mated that the present inward move
ment may run as high as 10000, 900,
but we do not need goll while Europe
does, and under existing conditions, it
is more advantageous to Europe and
to the United States to allow these
credits to stand. We have thus be-
come a creditor instead OF a debtor
nation.
The most important local factor in
the financial situation Is the abund-
ance of loanable funds at reasonable
rates. This is due partly to the dull
ness in trade and partly to the salts
factory workings Of the federal re-
serve banking system. There has been
steady expansion In loans which
now stand at 1922. 800, 900 against 81
| lSO,COO,00o at the opening Of the
year Bank reserves have declined
somewhat In consequence, but the
surplus last week was still above
$l4O,OOO,0 900. 1nyestment< conditions
have improved as shown by the ready
absorption OF really high-grad bonds
and stocks. Some Of the latter are
selling at very low prices, compared
with current rates for interest. Stock
exchange values have been subjected
to sharp fluctuations The passing OF
| U. 5. Steeps dividend and announce
ment Of the New York Centrals new
/ issue were both signals for bear at
tacks, although they represented con-
ditions already passed There was
some fear also that the Canadian Pa
cific dividend would be reduced, but
these apprehensions proved unbound
! eG, The possibility of an extra SEES
| sion for the purpose Of passing the
ship purchase bill is an unsatisfactory
4
be glad to see congress adjourn at its
appointed date, March 4th. The uncer-
tainties of war also caused moderate
fluctuations in the security markets.
| There are thus sufficient depressing
| influences to keep the market more or
less unsettled and afford the oppor-
tunity for creating bear party of
some consequence Nevertheless, In
trinsic conditions are steadily improv-
| ing; the best evidence Of which, as
already stated, is the activity Is new
| financing.
There is continued gain In bust
ness confidence, also come. though
| limited, improvement in the volume Of
business. Bread is advancing owing
to the high cost Of wheat, brought
about Of course by war conditions.
Grain has already risen dangerously
high; and present prices naturally
yield gratifying results to the farmer,
as all food prices are rising. The
southern cotton planter is also get
ting better price for his product.
These are comfortable times for our
farming classes, since conditions en-
courage the largest possible produc-
ton at good prices for nearly all agri- !
cultural products January railroad |
earnings were exceedingly unsatisfac- |
tory and often showed large de- /
creases. Yet later freight returns |
show an increasing movement, and I
there is reason to hope that the raft 7
roads have seen the worst OF their /
troubles. In another aspect the tide |
seems also to have turned for the bet /
ter; that Is in the iron trade. In the /
export division a much better bust 7
ress Is being done, and our own rail
roads are plating more liberal orders
for equipment than for several
months As prices are, also steadier,
there is abundent evidence that the
steel trade Is now on the upward
grade. although the pace may be dis
appointingly slow. Nevertheless the !
industry is now running upon a 60
percent basis, compared with 35 per-
cent few weeks ago.
Business this week was somewhat
interrupted by the holiday, but indi-
cations point to more active and
irregular market. Should nothing oc-
cur to prevent the present reviving
tendency Of confidence, we may look
for still higher market, but pur-
chases should be governed with ex-
ceptional caution AMI sharp reactions Z
are possible at any time