The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-02-07
Business and Finances
By w. s. Cousins, Editor American Benker

New York, Jan. 31.-Theoretically
all restrictions have been removed
from the loaning of bank funds on
Stock Exchange collateral and hopes
have been expressed that the effect
OF this important change will be to
keep quotations stable, and not I'M
likely to bring about a gradual ad-
vance. Investors and speculations in
stocks will now be supplied with the
means to carry out their operations
On the constructive side and it will be
possible to form correct conclusions
as to whether restriction of credit has
been the chief or only factor in hold
ing the market within such narrow
limits. The Stock Exchange authori-
ties, in urging that the money commit
tee let down the restrictions, gave it
as their opinion that there was no
reason to expect marked increase of
speculation during the present un-
settled period.
Practically. it may be said that the
regulations of the money committee
have not been rescinded, but merely
suspended and the committee will be
reinstated should there be within this
and the time Of placing the next gov
eminent loan any obvious call for such
action. Record will still be kept of
the total loans actually placed for
speculative purposes and restrictions
can easily be replaced should there
be any indication of tendency to ex-
coed the safety limit, especially dur
ing the>time when the government is
money market. 1t is conservative
opinion. however, that there is a con-
siderable margin now available and a
heavy increase in market activity on
rising price scale may be permitted
before it will be necessary to again
place check on speculative credit ex-
pansion. The whole question will re-
volve around the desire of the general
public to load themselves up with
stocks and underlying conditions in
the industrial and commercial world
do not particularly favor speculative
boom at this time.
Extending Our Trade.
Foreign trade experts have been
freely expressing their disappoint-
ment over past performances as well
as the immediate outlook in foreign
trade. The latest available govern
ment data confirm the conviction en-
tertained in trade circles that while
the bulk of our exports to Europe
have greatly increased, this has been
because of our large shipments of
foodstuffs, while manufactured goods
have been on the decline. The ex-
pected development of export trade
which most people thought was on
the way as soon as the armistice was
signed, has failed to materialize II
has ever been demonstrated that the
supposed shortage in raw materials
abroad has not existed, but that on
the contrary, large quantities of es-
sential raw materials are now on
hand.
According to reliable reports, Amer
ican exporters are also confronted
with cancellations of millions OF dol
iars worth of orders for our products
from South American merchants. The
reason for these cancellations is the
offer OF European countries to resume
their trade on the basis of the pre-war
longtime credits. If America is TO |
increase its trade with the South
American countries it will be neces-
'ary to supply a system of credits in
competition with those in vogue bv !