Daily capital journal. (Salem, Oregon) 1903-1919, 1915-01-30
Henry CIews' Weekly
Financial Letter

hNVhp paot 10 dlFtutlS expressing llSeil
in business improvement. Since re
opening Of the Stock Exchange values
Of active stocks have risen on an aver.
age of from 5 to 7 points, and in some
cases the advance has been as much
as 10 points and over. So far, the rise
has been accomplished without any i'm.
portant realizing either by foreign or
domestic interests. The market shows
a steady broadening Of activity and
gives every indication of n sound and
healthy change for the better. Among
the most encouraging elements nave
been the ease Of money, the adjustment
of credit to war conditions and the ex.
traordinary expansion in our export
trade. Cheap money makes many Sc
curities look very attractive, and is n
powerful factor in stimulating the spec.
ulatiye purchases. The investment de.
mand has not been up to usual Janu-
ary proportions, but is improving and
is quite as good as might have been
expected under the circumstances. The
low rates for money stimulated the in,
quiry for long term bonds, which are
likely to sell at considerably better than
current prices. The activity in our ex-
port trade is phenomenal We are still
sending large quantities Of grain, cotton
and war material to Europe These
will inevitably continue for
scene time to come, and would be even
more active were it not for the diff
Guilty Of finding outward freight room
In view of the heavy decrease in i'm.
portati0ns, conditions favor gold i'm
ports, These, however, are likely TO be
resisted by European government be.
cause of the desire to retain gold dur.
ing the war. Nearly every European
nation has established large credits in
the United States, presumably to pay
for the eXigencies OF war Great Brit
ain, moreover, has temporarily prohib.
tied new capital issues until more sure
Of its own war Financing, the result Of
whicn win he 10 make still greater de-
mands upol the United States for
funds This country mas lately given
m amazing exhibition Of financial
strength, which will vastly augment its
prestige in the money markets of the
world. One result Of the war has been
10 tu,n the attention Of American mon.
lfacturers TO tbo oreat onnortnnities in
export trade. An active campaign is
llrcndv being carried ON in tbis ,iirec.
,ion which Is Hkely to yesult in nm
important expansion Of American for.
agn trade in manufactures. Hitherto
raw nroducts hive constituted foo LARGO
a proportion of our sbiuments Wc do.
sire TO sell the nroducts Of our mills
10 foreigners AS well as the products
~ our farms.
General business SHOWS signs of i'm.
Bank clearings. which ora
rcpernlly accented AS p fan barometer
,f trnde conditions. MT ali noints in tho
United states showed n docreoso of onlv
} Der cent in tbo first weel, in Jann..
lry. The heaviest sbrinkage was of
course. in the eastern states where fin.
incial and Industrial depression com.
pincd TO emphasize reaction. Outside of
HE enstern STATES. however. tbe reaction
II not particularly severe. and many 10.
,alities show handsome gains oyer last
,ear. particularly in tbc orain districts
rhe total clearinrs in that particular
week were 40 3.lG6.OO0 900. against 49,.
iGl 100000 wear AGO. I'm the same
week Of 1919 the total elcarings were
,nly $3.27l 900. 600. so that tbis yeor,s
'ipurps are NOT so disco1ropino Ms some.
lines supposed 10 considerable OK.
cpt the present DEPRESSION in business
Is a state of mind originating in thc
iinancinl ana industrial ccntors where
initiative usually booips Win con.
.inuance of the present improyoment in
confidence further business activity
,houll be cxpccted. esnoeinllv when the
,omipg of spring nermits tbe rcsnmn.
ion of ontdoor work. The steel trnde
\ showing moro ar loss imnroyement
rbe United States Steel tomoration
3 now running at AZ per cent of its
otel capacity for steel higots. com.
,ored with 95 nor cont in Noyember
when depression wns koenost E'air os.
lers have been nlaced for rails rolling
,toel, ete and prescnt law nlices nre
,uite' litciy 10 stimulate the demand
or construction material In tbe tex.
le Trades thero il also n widening of
,ctiylty Cotton gnods are in better
.eoucsi owinp tn low nrices md n dc.
.iJrdly ontimistic tone prevails in some
ranches Of the textile industry. notn.
,y ,he hosiery trade
Tbc railrooi simation ~ not entirely
owing 10 the small volume
,f traffic on many lnna esneeiallv In
.be .n,ib vhcre dclnv In tho cotton
noyemcnt hns retarded business Tho
,onfict of nuthority between stote and
'odcrnl regulation Of rates arising out