Daily capital journal. (Salem, Oregon) 1903-1919, 1917-06-16
Financial Conditions In
America We're Never Better

New York, june 9--The week 5
events were generally of favorable
nature. Registration day passed off
successfully, and the total absence of
disorder, as wen as the patriotic man
ner in which 10000, 900 young men re-
spondcd to the call, was assurance OF
the fact that notwithstanding fears
and agitation to the contrary the Unit
ed States was in fact and name a unit
ed country. From Europe the news was
also more encouraging. The allies are
making steady progress; the submarine
warfare shows signs of weakening, and
disturbances in Russia seem less threat
ening than few weeks ago. Reports
concerning the liberty loan continue
highly stimulating, and all Indications
point to its complete success n spite of
the difficulties of raising such a vast
sum before our people had been hurt
IOr stung into very strenuous belliger-
,ency. All in all, the week Is develop
ments were of a stimulating nature, and
were distinctly reflected in more act
i've and stronger stock market.
We may congratulate ourselves that
lour financial resources are in good con-
dition for meeting the coming strain of
war The latest national bank call, May
1st, showed deposits exceeding $l3,-
1915, 100000, the heaviest total on rec
ord, and 1,944 100000 more than a
lyear ago. Loans on the same date ag-
Igregated 1881 100000, an increase of
ISL, l45, 100000 during the same twelve
months The increase in loans, being
considerably smaller than the increase
in deposits, it is fair to assume that up
| to that date there had been no infla-
| tion of credit, and that the growth of
deposits was chiefly due to accumula-
ton of savings. If any further evidence
of the excellent condition Of the ma
tional banks was needed, it could be
found in the surplus reserves; which on
May 1st stood at 1914, 10000 an in
crease of 135,000,000 during the year.
Great Total Reserve
Their total reserve was $2,473,0O0, 900,
or $315,000,000 more than last year. AS
ithe national banks constitute about
half the banking power of the United
Estates, our banKing resources must be
Regarded as in a very satisfactory state
| if the position of other banks be at
| all similar to that Of the national in
Istitutions. Under the new reserve sys
tenn our banking resources have beer
Immensely expanded and strengthened
This is incalculable good fortune, fol
had the former clumsy and inadequate
banking system been still in vogue, the
country would have been in danger al
this time of either a serious financial
crisis, or else threatened with hasty
land TX advised fiscal legislation, which
might have required generations to get
rid Of after the war. Although we have
mot yet fully availed ourselves Of tho
advantages which the new laws offer
1.-THE country finds itself in an exceed
lingly strong financial position, wei
lequipped and well fortified in all es
lsentials to meet the tremendous loa'
(which financing our allies and ourselv
les will impose upon our fiscal maehin
lery. These demands must continue no
lonly as long as the war lasts, but pei
Ihaps for some time after, because tn
nations of Europe will be heavy bor
lrowers and the United States the rich
est lender for a long period. As an il
Illustration of the efficiency of the re
lserve system, the treasury has just IS
lsued another offering of $20O,000,000 il
Treasury certificates, which makes thu
total of these notes issued under tn,
Irecent war revenue bill about $500,
100000, all Of which has been place.
through the federal reserve banks with
out producing ripple in the none.
market. In this connection our golf
supply will also be subject of pri
mary interest. The present stock of gol'
in the United States is estimated a
the huge sum of nearly $3,000000,000
or approximately one third of tn,
world IS stock. This is far beyond ou
normal requirements; yet the enormous
obligations which this government il
labout to assume change the entire sit
uation and necessitate a conservation
of our gold supply, which was provi
dentially poured in upon US at TINT
Dwhen we were not in need. During tht
item months ending April Both, the ex
cess of gold imports over exports am
ounted to $666,000,000, against 1914,
00O, 900 in 1916, an increase Of 1892,