The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-01-18
Despite the War, Conditions Are
Growing Better and the Improve
ment is Most Encouraging,
Says Finaneier.
WE ARE LoANING MONEY
Russia, Canada, Argentina, France,
Sweden and Other Countries
Borrowing Money From
American Banks.

| NEW YORK, Jan. 16.-Despite the
war. conditions here affecting Ameri-
lean securities are improving in a
most encouraging fashion. There is a
lbetter feeling In both banking and
financial circles having its foundation
in positive changes for the better. The
lcredit situation has much improved
Money is redundant and promises to
lcontinue easy for some time to come.
though not in full running order, is
working well and has already proyid-
ed much assurance and relief Clear
ling house certificates have entirely
disappeared, and the Aldrich-Vreeland
Emergency currency is being steadily
retired. There is no lack of funds to
good borrowers: the accumulation
Ibeing due to dull trade, to the return
lof crop money, to the lowering of re-
Iserve requirements from % per cent
to 10 per cent, and to the fact that
we are in position to draw gold from
abroad. Today We are loaning. money
to Russia, Canada, Argentina. France,
/ Sweden and elsewhere. The war in
Europe and our own strong financial
position have caused striking shifts
in the currents of finance and trade,
which will greatly strengthen the
prestige and power OF New York as
an international credit and money
market. Many OF the transactions
now taking place here are of course
the immediate consequence OF the
disturbance In foreign credit, and
when the war is over these factors
will disappear. not without. however.
leaving New York in a position OF ad-
vantage considerably greater than ex-
listed before the European confiagra-
Etion.
by far the most encouraging ele-
|ment in the present situation Is our
foreign trade. Our exports are pro-
lgressing by leaps and bounds. due to
liberal foreign orders for war mater
Iials, to heavy exports of wheat at high
prices and to practical resumption OF
cotton shipments. The outward move
ment on these accounts is by no
means at an end, and the orders for
war materials promise to run to even
much larger amounts. The effect OF
, this foreign demand for American
products at time when imports are
running comparatively light, is to
.lleave heavy excess Of merchandise
lexports estimated at $4,000, 900 in
December and as much as $4,000, 200
lin the first week Of January. II these
Tendencies continue, conditions will
soon favor large influx OF gold, un-
!. less Europe should send back Ameri-
can securities more freely than at
present, or unless European banks
should undertake to restrain the
movement by artificial means. This
week we have been surprised by the
announcement of about 100000 OF
gold from China to the United States.
THE concern responsible for this IN
usual movement explains that this
transaction was done through the
home Office in New York instead of
as usual through its branch Office in
London. A small consignment is on
the way from France, possibly for
Cuba Should New York draw gold
from London-as is probable If Brit
lish merchandise exports decline-it
might come from Ottawa, where the
Bank Of England has special de-
post, or 1t may come direct; though
the Bank of England would very like
Ely endeavor to check any large gold
movement in this direction. The
i Russian government, it is announced,
has placed a credit OF s25,OO0,00O in
New York to be used for payment OF
war materials. France also recently
deposited $1,000, 900 in New York, and
from both sources larger sums are
expected to follow, which means con-
tinued activity for certain American
Industries.
Our Industrial situation is still some
what spotty. AS just shown, special
lines are enjoying exceptional activ-
ity owing to the war, and since there
are no signs of early peace this fea-
ture promises to continue for some
time to come The steel industry Is
enjoying somewhat better prospects;
this being due to the general spread
tof hopefulness, to better buying from
the railroads since the rate decision
land in a small degree owing to for
ieign orders. The steel trade, how
ever, is still far below normal ard
prices while firmer are very low.
There is also a better feeling In the
great textile trades, though here the
conditions are somewhat mixed.
Some branches of the wooden industry
have benefited by the war; others
have been injured by the resulting in
ltereference with wool supplies. Large
Iimportations of woolens under the