Daily capital journal. (Salem, Oregon) 1903-1919, 1916-02-16

New York, Feb. 11.-Our foreign re-
lations continue to be am important fac.
tor in the stock market. Apparently
the Lusitania incident is settled. High
ly important concessions have been
made to American demands, and it is a
source of satisfaction and relief to have
so serious an uncertainty permanently
removed.
The stock market naturally fluctuat-
ed from day to day in sympathy with
the changing advices concerning diplo-
matte negotiations. Their successful
consummation, however, impaired q
much better tone generally. American
securities held abroad have been sold
upon every good opportunity by private
holders owing to the pressure e1erted
by the war. British finances are uh-
der great strain but show no signs of
weakening. Under the circumstances,
of strong situation here and a weak
er one in Europe, a spasmodic influx
of American securities must be antici-
pated from time to time. The probabil-
ity of the British government negotiat-
ing collateral loan rather than selling
modified securities will of course pre-.
vent the heavy liquidation which the
other method might have involved. Hap
PLY, this country is in an excellent
condition for taking back its securities
if necessary; a state of affairs which
is equally fortunate for possible sellers
on the other side.
In the war situation there is no
change. The weary struggle 1rags its
cruel way without developing any de.
cisive features. When. however, we sur.
vey the situation at home, the outlook
is one of genuine hopefulness and in
strange contrast with the sad conditions
abroad. The decided improvement in
home trade is illustrated by January
bank clearings for the principal cities
which aggregated owed $20O00,O00,0 1000
compared with $l3,400,0 100000 a year
ago; an increase of about 4S per cent
These increases, which must be largely
credited to a good harvest, were also
partly due to higher prices and to spec
ulatiye activity, not to speak of the
stimulus afforded by war contracts. The
figures for New York. 10000 900
NllOH ouuNGu an lHcTedSe Oh nearly ~
per cent. were of course inflated by
stock exchange activity. The increase
however, was notable. considering thai
the stock exchange was in full operation
for the first time during the month OF
January a year ago. The increase il
bank clearings in the middle states was
GA per cent, in New England "a pei
cent, in the middle western states ..
per cent, in the Pacific states II pei
cent and in the southern states 2l pei
cent. A very striking fact is that the
January clearings at New York were
more than one-third of those in the en-
tire country. compared with less thar
one-half of the total year ago. Thi,
shows that New York gained vastl,
more in the volume of business thai
any other city in the United States
Outside Of New York bank clearing,
in the entire country were 25 per cen
ahead of the previous year. New Yorl
alone gained nearly 70 per cent owe
last year.
A further proof of business improve
ment if needed, will be found in th,
railroad situation. Earnings continu,
to show very satisfactory gains. mar
ticularly on the larger trunk lines: an,
the total earnings thus far reported fo
January indicate an increase of abou
20 per cent over those Of a year ago