The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1915-03-26
j.
STATUS STRONG
Fiscal Affairs Are Thoroughly
Modified Upon q War
~ Basis. - 49, i . ~ !.

ByHelr5Elexs.

BY He1E4GleWs.
" NEW YORK, MaIeh25.-Thee most
striking, also the most assuring; fact
in the outlook is the remarkably strong
financial position Of the United States.
Our fiscal affairs are thoroughly mo-
bilized upon a war basis. Nearly all
the emergency currency issued in the
form Of Aldrich- Vree1and notes or in
'clearing house certificates have been
retired. Our banking system is ex-
ceptionally strong; and the Federal
Reserve system, with minor excep-
tons, is working very satisfactorily.
Our gold supply is simply. enormous,
reaching about $1,000, 000, 900, which
is vastly more than necessary for our
requirements. There is consequently
no need of our importing gold, al
though foreign exchange rates favor
such an influx.
Exports Are Large.
Our merchandise exports are upon
an enormous scale, and promise to so
continue for months to come. AS ex-
ports are declining, the trade balance
in our favor is steadily rising. To
some extent, the void in imports is be-
ing filled by return of securities; but
much of the balance remains on this
side in the form of foreign credits
which are steadily growing in import
ance and volume. New York for the
time being is the chief open money
market in the world, and all, or nearly
all, of the belligerents have established
large credits in this market to be used
chiefly for the purchase Of munitions
Of war. Until the war ends, a con-
tingency unhappily not yet in sight,
this situation will probably be main
tanned.
The home business situation, while
ar from satisfactory, shows improv-
:ng tendencies at work. Many indus
trial activities will resume with the
coming Of spring. Building operations
Ire already on rising scale. The steel
trade is expanding slowly but surely,
and is now running on go per cent
basis. Unusual quantities of manu-
featured steel are being exported; also
arge quantities of war materials.
American ship owners are enjoying a
positive boom, such as they have not
witnessed in years.
Implement makers are beginning to
eel effects of the prosperity enjoyed
by American farmers, which has done
80 much to offset industrial depression
m other parts of the country. Our
cotton industry is working under bet
Ter conditions, thanks to lessened un-
certainty regarding raw materials and
labor.
The labor situation here is better
than in any other country Of the world
at this time. American labor is free
from the curse of the war. The pro-
portion of unemployed may be large,
especially in great cities. But the
number Of jobless is much smaller than
might have been expected.
The New York stock market con-
tinues to show moderate fluctuations.
Any special strength appears to be
promptly checked by foreign selling.
On the other hand, there is no general
weakness, and the better grade stocks
are readily absorbed. Very consider
able amounts of American stocks and
bonds have been sold here on foreign
account during the past few weeks,
without causing any appreciate weak
ness. There has been more or less
selling on short account, presumably
70 anticipate further foreign lquida-
ton. Purchases are being made with
much discrimination, investors show
ing decided preference for short term
obligations, good bonds and high-grade
railroad shares.