West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1915-09-09
The Business Situation

r..
mills being filled up with business that
viii keep them running to capacity
for the remainder Of 1915. In the
month OF June. the latest month for
which detailed figures are available,
the exports OF iron and steel from the
United States were valued at $32.124.-
4l5. The highest previous monthly
record was $2S.O50,00O in May. 1912.
Exports for July and August of the
present year were still larger, and as
stated. manufacturers are unable TO
guarantee delivery on new orders un-
I'll the first quarter OF 1916. Not all
the iron and steel exported has gone
to the nations at war. South America
and Asia have come here for wire,
rails, machinery, etc, because England
and Germany are out of the market.
Domestic needs are increasing, and It
is estimated by perfectly competent
| authority that purchases OF railroad
| supplies during the remainder of 1915
viii be 30 per cent larger than for any
corresponding period I'm the past two
years. Prices of all steel products are
very firm and in many departments
mills are operating to full capacity.
Coke production for the week reached
new maximum for the year.
AS consequence OF the larger en-
ployment of labor at higher wages, the
mercantile trade of the district shows
decided improvement. This is more
| noticeable in the smaller towns sur
rounding Pittsburgh than in the city
proper, but the end of the popular va
cation season, the return of tourists
and the resumption of school work.
have resulted in a livelier retail trade
in many lines. The total volume of
| mercantile business in Pittsburgh IS
not only larger than at the CORES
ponding season last year. but com
pares favorably with 1913, when the
| maximum was recorded. Merchants
are now looking forward to increasing
activity in fall and winter trade.
Figures made public this week by
the department of commerce show that
In July the United States exported
nearly $26S,000,000 worth of merchan-
disc, an increase of $113,S4O, 900 over
the same month last year. Our i'm
| ports for the month were $143, 900. 900.
n decrease of $16,577,000. The months
balance in favor of this country was
4,S79,OO0. For the seven months of
the calendar year the balance i'm our
favor was $96O,S7S, 900. which com
pares with balance of only $6O,399.-
600 in the same time last year. The
preliminary figures for August indi-
cate that at least $11O,0O0O0 more
mas been added to the credit side of
the account, and if this rate is main
tanned over the ensuing four months.
the balance in our favor for the calen-
dar year will exceed 1,5OO, 100000.
The sum is more than three times
the average annual balance under
normal conditions. Ordinarily settle
ment is made by such Offsets as the
huge sums spent by American tourists
abroad, the interest and dividends paid
foreign holders OF American securities.
and the freight and insurance charges
which our shippers pay on imported
merchandise. At the present time,
however, these Offsets are not ONLY
greatly reduced. but exports of war
materials are many times the aggre.
gate of former years. This wholly alb.
normal state of external trade ac-
counts for the unprecedented break in
foreign exchange rates this week and
the Generalization that existed i'm the
international money market. 1t is un-
derstood that the terms on which mu-
nitions were sold call for settlement in
dollars. In order to provide American
credits, drafts upon foreign banks
were sold for what they would bring
in American dollars. The result was a
heavy discount on foreign money quot
ed in New York, which in effect meant
higher cost of American commodities
to foreign buyers.
1t seems almost incredible that the
English and French bankers so COM
pletely misjudged the requirements OF
Europe as to permit such a state of
the credit market to occur as was wit
messed this week 1t is easier to be-
lieve that they manipulated the de-
cline, to the temporary DISADVANTAGE
OF government buying of supplies. in
order to induce a shifting of foreign
investments from American securities
into their own war loans. Such mani
pulation would accomplish the double
purpose Of making better home mar
ket for home war loans and establish
ing credits in this country from the
proceeds Of foreign liquidation OF the
American stocks and bonds. Toward
the end Of the week there was some re-
covery I'm foreign exchange rates. and
although extreme secrecy surrounds
negotiations. It is probable that pro
gress was made toward restoring
something resembling normal condi-
tions
Domestic money rates remained
easy and today's New York bank
statement will probably show an adj
dition to the already unprecedented
surplus reserve. Commodity markets
we're lower, cotton declining I'm the
face Of a government crop estimate
indicating yield OF only 1900. 900
bales, against 1G.135.OOO bales last
year Grain markets. declined 10 the