The Washington times., 1916-01-02
Week in Financial Circles

The United States has just concluded
one of the greatest years in its business
history, and is now entering upon an
other with even more brilliant pros
poets.
" hile disturbing diplomatic situations
continue to arise. there Is little real fear
on the part of the American public that
this country will become involved in
trouble with any Of the European ma
tions. and, consequently. each succee l.
ing day creates greater confidence in
the future.
The year just closed has proved 10
be the greatest agricultural twelve
month in the history of the country. 1t
succeeded year which witnessed the
combination of great agricultural
harvest with an unprecedented demand
from Europe for our grain surplus at
the highest prices since the civil war.
During the two years preceding January
l. 1916. the farm products of the coun-
try added nearly $4,000 900 900 Of new
wealth to the riches of the United
States. The annual report of Secretary
Houston. of the Department of Agri-
culture. for 1915, places an estimate OF
ss.SI3. 100000 on the value of American
farm crops and animal products for last
year. a valuation without precedent.
This. however. probably will he eclipsed
by the present years showing.
This valuation Is an increase of
about SSS,O0O. 900 over the value of 1913,
hitherto the highest ever recorded. The
increase occurred in the face of de-
cline in cotton from l2.5c pound for
the 1913 crop to an average of 7.3c for
1914. The total value of the 1919 cotton
crop. estimated at $S46, ,OO0,OOO. was S2S3.-
OO0. 600 moro than the 1914 crop. although
the latter was IA per cent greater in
quantity.
From an extremely low ebb. produc-
ton of iron and steel has mounted until
all former records have been surpassed,
while values have risen steadily the ad-
vances coming in sharp succession dur
ing the closing quarter of 1915. The in
dustry had during 1914 sustained va
rious setbacks. eliminating in the de-
moralization incident to the outbreak of
hostilities abroad. but influences from
the same source contributed to the re-
vival. materializing In extraordinary
purchases of war munitions and sup
plies This situation was soon followed
by better domestic demand and an un-
precedented rush OF orders quickly de-
veloped. That certain phases OF the
market are abnormal is recognized. but
the headway gained is likely to carry
the industry into period of activity
extending over several years. for all
present indications point to prosperity.
and estimates of prospective require
ments in railroad equipment alone rep
resent large tonnages. Price concessions
first half of 1915. and the summer was
we'll on before any material improve
ment appeared. but the rush of business
soon brought sharp advances in quota
tions. Delivery has become a problem
with mills booked months ahead. and
sales are reported at figures very attrac-
tive to manufacturers. while on ware
house orders high values have been
realized.
The railroads of the United States
experienced varying fortunes in the
year 1915 They encountered unfaV-
orable conditions during part of the
period, but later in the year they
entered an era of large earnings
which, in a number of instances, es-
tablished new high records for both
gross and net earnings. Many weak
lings under cumulative strain got in
to financial trouble. The strong roads
at the end of 1915 found themselves
again enjoying prosperity.
Forced economies taught the rail-
roads to increase their efficiency, and
out of the period of railroad depres-
sion there came new records in oper-
ating ratios On the other hand, reg
ulative bodies helped in some direc-
tionS to improve the railroads posi-
tion. Recognition of the fact that q
new manner of approach in the mat
ter of regulation and of other rail-
road problems was needed, was shown
in the suggestion by President Wilson
that a commission be named to con-
slider the railroad situation as whole
and to make recommendations.
The European war helped to awaken