Imperial Valley press., 1917-01-18
THE BUSINESS OUTLOOK.


to substitute constructive for destructive pursuits The
developments of peace discussions during the past few
weeks have tended to remind the world that apart from
The cessation of boodshed and of the destruction of treas
ure the transition from state Of war to state OF peace
must be attended with changes Of farreaching sgnif
cance says the Wells-Fargo Nevada National Bank
bulletin.
The American people are still doing an active busi-
ness which is both voumnous and profitable, but the
ratio of what known war business to the country
general trade is nothing like large as it was few
months ago. Various industries report such huge volume
of domestic business to make them relatively indepen
dent of foreign orders This is notably the IN Steel
where domestic orders sufficient to keep the great
plants busy for months to come Some OF the largest
manufacturers have been forced to reject all foreign
tracts in order to satisfy the demands Of their regular
customers whose orders in normal times keep their plants
going We welcome every effort to concilate reg
uar customers the demand arising through the ordinary
channels of trade as distinguished from the wholly ab
normal channels developed during the war period
Readiustmen of prices IN the securities markets has
been Of great benefit in eliminating the weak points Of
IN overwrough speculative position The markets have
stood this test we'll Considering the extent Of the pre-
vous advance, even the industrial shares (other than
those of corporations whose prosperity has been wholly
due to order have manifested excellent resistance
In the of railroad shares the disturbance has been
limited and in some issues scarcely discernibe The thor
oughgong reaction that has taken place. therefore, has
been Of substantial advantage preparing for whatever
readustent Of prices the restoration Of peace will fin
ally bring There has been excellent buying of high grade
bonds which in bread demand at firm prices Devel-
opments IN both the stock market and the bond market
since the of December 21-there
have been only three occasions in stock exchange history
when three million shares have been dealt in single
day-lndicate public confidence in the future of Aer-
can securities.
High prices for raw materials have had little or no
influence IN restricting consumption Trade everywhere
continues in large volume and it not for the car
shortage the movement would be even greater than it is
There has never been year when the inadequacy Of
transportation facilities has meant larger dollars and
cents loss the shippers. The railroads have done their
best give the public good service is evident that
they will have to have better equipment if they are
keep up with the growth of the country Nearly every
distributing center has suffered from shortage which
has been also important influence in creating the fuel
famine which has threatened certain communities.
Scarcely any new mileage was constructed during 1916
the smallest amount with exception since 1864but
it is evident that large outays for work and
equipment must be provided in the near future Such
improvements combined with the efforts the railroads
making to render their present equpm eff
cient imperavey necessary in order to avoid repe
tton of the congestion at many distributing centers
during the past year. This may be easy task but the
problem important and of direct interest to the
whole population We therefore be glad to note that
the December purchases Of railway equipment report
ed to have broken all records.
Preliminary figures covering this c0untry's foreign
trade for the year just ended show international credit
balance in favor of the United Stateseanng the
of exports over imports-of Sa100000000. year ago
the similar totals covering the twelve months of 1915
showed an export balance of 81 750000000 No other
nation in the worlds history made such showing
and it is certain that at the beginning Of the European
war no economist banker and business would
have venured the prediction that such huge trade bal
ance for the United States possible Thus the
ords show that during the last two years sales
merchandise to other countries have exceeded our pur
chases by more than $4,800000000 This should mean
long step toward making the United States creditor
nation for the time being at least of debt to the
of the world How much Of this foreign trade can W.
retain after the war? Some of the leading business me1
in the country are studying this qeuson and trying
ascertain ways and to that end In Europe also
many Of the best minds are similarly engaged in laying
plans to recover trade that they have lost The result vii
be struggle for trade supremacy the ike of which th
world has never before This country is favored
course with the possesson of record gold holdings wei