The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1915-09-17
RAILROADS BEGIN
TO GET ANXIOUS
Over 1916 Deliveries, as Supply
Makers Work on Foreign
Orders.
(By Ira N. Steel.)


Wall street deals with possibilities
uncertainty is the life blood OF
speculation. Thus our peculiar rela.
tions with the Teutonic allies and
the muddled foreign exchange mar
kets are the outstanding features of
the business situation, from the stock
market viewpoint Consideration of
the obstacles this country has faced
and overcome since Aug. I, 1914, COM
pei the opinion that these Outstanding
features" are Of comparatively slight
consequence after all.
Our financiers and captains of in
dustry have faced the blank cliff of
apparent overwhelming obstacles
many times in the past year, but ap-
proach has always revealed cleft in
the cliff, safe way out. 1t was thus
with the foreign exchange situation
of a year ago, when sterling stood
at the extremely adverse level of
sos IA on Aug. %, and sapping of
our gold supplies seemed imminent.
On Sept. IS, when the full results Of
the battle of the Marine were known,
sterling had fallen to 492 ga. It
closed at 400 1-2 last week, which was
nearer the normal par Of exchange
than was the 4.50 level of the week
previous.
A year ago our bankers were Sleep
less, trying to restore Americas finan-
cial reputation, the laughing stock of
Europe. This week we are enter
tanning on our shores a distinguished
delegation Of English and French
financiers, headed by Lord Reading
of Erleigh, the lord chief justice Of
England, come to arrange loan, and
to try to restore sterling to a normal
ba:is. The United States today is
the foremost figure in international
finance.
We have had other bug-bears The
possibility of "deluge Of foreign
selling Of our securities" was much
discussed and dreaded toward the
close Of 1914. The fear was unwar-
ranted, events have proven. Then
there were the Lusitania, the Arabic,
and more lately, the Hesperian. Much
"wrathful writing" has ensued, but
popular feeling is less heated than
three months ago, following the de-
struction of the Lusitania. Not in a
long time have there been so few
clouds in the financial sky as at pres
ent.
In the meantime the iron and steel
industry is driving full speed ahead.
Steel mills and blast furnaces are
making output records. More men
are getting employment. Prices are
rising. Iron and steel company earn
ings promise to display a pleasing
contrast for this year with recent
years. Orders on books indicate a
continuation of good works operations
for many months, come what may.
The whole industrial situation con-
tinues to respond to the magic Of
war orders.
Railroad earnings are beginning to
reflect the improvement in the bust
ness situation, and the steady expan-
sion in general trade. July's increase
of almost per cent in gross and
over IL per cent in net is a favorable
index of the autumn showing. To-
days idle car figures, showing a
decrease of over $1,000 freight cars
on the lines Of the United States and
Canada during August is a more
graphic indication Of what's doing
with the railroads.
The railroads of the country sud-
denly appeared in the market in the
past week with orders for rails and
equipment, seeming to realize at last
the extent to which the shop capacity
of supply manufacturers had been
absorbed with war contracts. Some
of these orders cannot be filled until
next year. Ordinarily the carriers
wait until the beginning Of the year to
figure on their requirements. Their
activity now spells their uneasiness
over the next years deliveries. Rail
road ordering in 1916 will be large
The. rigid economy of the past year
and half means that past as we'll as
future track must be provided for
This being true, the iron and steel
capacity of the United States has q
severe test ahead.