The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-02-15
RECOVERY HAS
BEEN GRADUAL
Demand for Capital is Increasing
Which Indicates That Business Is
Willing to Take on Larger
Commercial Risks.
COMING HERE FOR CASH
Every Important Nation Except Great
Britain ls Either Borrowing or
Trying to Borrow Money
Of America.

| NEW YORK, Feb. 13.-No better
evidence OF financial Improvement
could be recorded than the increased
activity of new financing. Immediate
ly following upon the opening OF the
war there was a sharp contraction In
new capital applications, the total OF
which recorded for the last seven
months reached about S0,00O,00O, or
$165 900 900 less than the same time
| last year. The lowest month was
| September, when applications fell be-
low S2S,00G,000. Recovery has been
gradual and in January the total rose
to $127O00,000, or only $3,000,0O0 be
low the same month in 1914; While
the total announcements thus far in
February already exceed $3.50, 100000
bonds, including S100,000,000 New
York Central, $27 100000 New York
State, and $15,00O,000 Canadian Paci-
fic, besides a number of other import
ant issues. The January total was OF
course swelled by the Pennsylvania
issue Of $40, 100000. Total issues in
February last year were $176,000OOO.
A considerable portion of current new
issues is for the purpose of adjusting
maturing obligations: but the signifi-
cant feature is that these operations
could not have been successfully car
ried through few weeks ago; while
now 1t looks as if other important flo
tations will follow, SO that this Febru-
airy will considerably exceed the same
month year ago. While we are fac
ing beyond doubt an urgent demand
for capital, 1t is not likely under exist
ing business depression, that there
will be any great demand from really
new enterprises. This year an extra
ordinary volume of short term notes
and other obligations mature, which
will have to be extended or turned
into fixed forms, the latter method be-
ing the most profita BILE
There is also another and very sig
nificant trend in the new demands for
capital. which is that nearly every i'm
portant nation in the world except
Great Britain Is either borrowing in
the United States or wishing to bor-
row. This Is due to the war. London
has practically retired as the world s
banker, for the purpose of devoting
its whole financial resources to con-
duct of the war. OF course, this
withdrawal Is temporary. yet it offers
an unusual opportunity to the United
States, because New York is now the
only free capital market in the world
and hither will come large portion Of
the new capital applications. At pres
ent the war is being carried on by all
belligerents largely by means of short
term obligations. although Great
Britain is aiming to pay a consider
able share as current expenses. Later
on these war debts will be turned into
more permanent forms of investment
ALL Of the belligerents have estab-
lished extensive credits in this mar
ket. for the purpose of purchasing
war materials. immense quantities
of which are being steadily shipped to
Europe. This movement will continue
as long as the war lasts, and is prov
ing a very vital factor in swelling our
exports, large quantities Of amnuni-
ton, automobiles, clothing etc, leav-
ing American ports every week. Our
exports are being further expanded
by heavy shipments of wheat and cot
ton. Meanwhile our importations are