The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-05-05
.Business and Finances

pie to purchase their growing neces
sites, with an expanding margin fol
luxuries. Many things which in hare
times are degraded as luxuries, change
over into a different classification
when the personal income SO permits
The steady employment Of labor. anc
in many industries at advancing rates
has been an important factor in the
current business situation.
Private reports from the West ano
the Southwest indicate capacity
business in all lines. which means re-
duced overhead charges and eff
cheney of operation. Freight conges
ton is serious and in some sections
the situation has developed very trou-
blesome complications. The whole
country is going ahead conservatively
and, were it not for the chaos in Mex
leo and uncertainty about the next
turn of affairs in Europe. general bus
mess in this country would probably
be 100 per cent better than it is
There is relatively little speculation
anywhere and in cases where it has
been reported those in control of af-
fairs have discountenanced it. The
result is that an immense amount OF
money is being held pending more
settled conditions. There has been OF
late somewhat better tone to money
rates. This has been partially due to
the increased requirements of COM
mercial borrowers, as reflected by
the definite expansion in business ac-
tivity. This tendency has not gone
far, however, although interesting de-
velopments may be expected later on,
If business continues to improve on
the scale observed for month past.
The greatest drawback to our for
eign commerce at this time is the lack
of SHIPPING facilities. Marine men say
that old hulks which were long ago
discarded, have been patched uD and
returned to the carrying trade on very
profitable b;.sis. The increases in
rates for the carrying of commodities
across the ocean are unprecedented,
and in some instances almost incredi-
BILE. The rate for carrying a bushel
of wheat for example, has increased
SEQ per cent.
The action of the British Admiralty,
in requisitioning cargo space in steam
ers operating between various Ameri-
can and English seaports, has greatly
interfered with private trade between
the two countries. The result has
been a great deal of tonnage left on
the hands of the steamship companies
so that some lines refuse even to book
any farther business until the present
congestion is cleared up.
Country's Expanding Credit
Less attention than it deserves has
been attracted by the recent state
ment of Comptroller Williams to the
effect that the National banks of the
country could extend credit to the ex-
tent of $3,000,00O 900 or $4,OOO,OOO, 900
should the business conditions of the
country require it. That this is vast
sum is of less moment than the con-
sideration that the aggregate is not so
great as it would have seemed two
years ago. The United States is be-
coming accustomed to large aggre-
gates. and very likely, in the not dis
tant future, ordinary amounts like 3d.
GOO, 100000 or $4,0O0,O00,OO0 will come
to be regarded as an everyday matter.
In view of what is here said, it may
be asked if there is any likelihood that
the unusued volume of credit possess
ed by the banks will be called into ser
vice. To this query it may be answer
ed that this is quite possible. American
manufacturing and commercial inter
ests are impatient to enter the great
field now opening up before them.
They see what can be done in South
America, Asia, Australia and Africa,
and know that as soon as the war is
over Europe will be added to the field
of American enterprise.
Will there be danger in such a credit
expansion? Not if it is made in the
right way and under proper condi-
tons. The expansion must not be too
rapid. and must be made in accordance
with the legitimate demands of bust
ness. Loans must not be made on in
secure ventures as to the result of
which there are serious doubts. 1t is
upon both borrowers and
lenders to have care as to what they
do, and to refrain from ill-considered
and hasty procedure.