The Washington times., 1915-11-14
|. WEEK IN FINANCIAL CIRCLES

For months American business has
been improving. but this Improvement
had until quite recently been lopsided
In that the benefits were being felt
principally by Industries which were Vi-
sagsd In manufacturing products In de-
mand by the European countries at
war. and fulnlling demands from mar
kets that were formally dominated by
those countries. Al last these benefits
are touching the primary markets and
the nation at large has come to enjoy
them.
The past three months hsye witnessed
q remarkable growth In the volume Of
the country's business. Tonnaye "
moving over the thoroushfares Of trade
In such constantly increasing proper
tions that an equipment famine 10 In
sight. and the congestion at terminal
points Is already q source OF great
Embarrassment 10 the railroads. There
Ia runaway market In steel The gre 1t
increase in unfillcd tonnage on the books
Of the United States Steel Corporation
during October does not begin to gauge
coming In. Copper production is un-
precedented, but the mines here and In
South America, all owned bv American
capital. cannot meet the world demand.
ing, and yet the national banks OF the
country hsve In their vaults Idle cash
sufTicient TO create e5,0O,n0O0O OF new
credits. Under such conditions the pub.
lie 10 In no mood to heed tho voice OF
caution. much less the alarms Of pessi-
mism.
As . result Of the continued flow
of gold into this country from Europe
In pavment for munitions and supplies
and the shipment of cash from the in
terior. idle funds continue to pile up
In the New York banks In enormous
volume.
The clearing house Institutions at
the close Of business yesterday held In
reserves above legal requirements were
$1,000 vp.Ooo In new credit. They
therefore. In q position to extend all
the aid that the London banks may re-
auire to nav for the material purchased
IN this country. 1t has been definitely
decided that this credit will have a
present maximum OF about 500. 00.000.0OO.
Bank clcaTtnGs last week At the prin-
cipal cities Of the country aggregated
last year. The ratio OF increase was
l0s per cent for New York. 80 per cent
at Boston, 20 per cent at Philadelphia.
5 per cent At Chicago. ~ per cent at
81. Louis. and 81 per cent at New Or
leans.
The great activity on the stock ex-
change. which was closed q year ago,
had much to do with this vast In
crease In New York. but outside OF that
city. where financial operations were
more nearly on normal scale. the
gains were almost as impressively
large. and proved conclusively a wide
spread business expansion.
Another significant sign Of improve
ment. and one which will have a far
reaching effect upon general condi-
tons. II the STEADY increase In rail-
road earnings. In the third week of
October thirty-two roads reported
earnings OF Nl. .3OO. 600. an increase of
81. 100. 400, or over II per cent.
Previous to October the railroads
had been reporting more or less Sc
rtous losses. but these diminished
sharply during September and turned
into steadily increasing gains in Octo-
ber. The latest returns are even more
cncoura ging. many Of the big trunk
lines. both East and West. showing
very handsome recoveries. particular
ly such roads as the Burlington. New
York Central. Pennsylvania, and Can
adian Pacific.
The iron trade continues to furnish
examples OF unprecedented activity
Since September ] orders for over l000..
I