Republican farmer., 1919-07-25

as the provision of new capital for home enterprises, which is sure to be very much larger than in any year of our history. Can and how will our money market meet all of these de- mandS, which though not immediate are sure to make themselves strongly felt in the not very distant future? :? The financing of our export trade has been one of the most important problems requiring solution Signing of the Peace Treaty; removal of the embargo on Germany, and lowering of freights and a better supply of tonnage have also been important factors in the present crisis. If the Tall In exchange continues 1t will have, the inevitable effect of lessening for eign buying power and thus working against our export trade. Already cnsioderable foreign orders have been held back owing to the weakness in sterling, which indirectly will ex- ert a restraining effect upon com modity prices here.
 Stock Market Conditions
 Conflicting circumstances control the stock market and keep it in an extremely active though unsettled state. The strength of the under tone seems undin1tnished. and the
 
 lants are the great prosperity of the agricultural sections and a conse- quent good outlook in the industrial world. Our export thade is sure to be enormous, despite the accompany ing difficulty of giving Europe suf- f1cient credit. The railroad outlook is improving owing to the better trac prospects, to the probability that they will secure reasonably fair treatment from Congress, that when returned to their owners some form of com pensatfon for war lossss will be permitted, and that rates Hay be advanced sufficiently to at least part ly compensate for the great increase in operating costs imposed by higher wages anH materials. Public utilities also have a better outlook for similar reasons, which areb etter treatment by public authorities and permission to fairly offset increased costs by adequate rates for service. The dis cusAons on the peace treaty at Wash ington have little effect: being deem- ed largely political What is more to the point Is that the world fig now on peace basis, 4 and active pro- duction has taken the place of five years of intense destruction That is the one great hopeful fact, and all other problems are Ch1cny those Of adjustment These may be tempor- arily dfsquieting, but in the long run they mean better times ahead. On the unsetthng side of the stock market are the '. prospective starin upon the money ma.kNt, the weak ness of exchange and the increasing frequency of strikes. The high in- hation of credit and commodities is also a matter receiving more atten- ton in banking circles. These are all incidents natural to the reconstruc- ton era in which we are now running full tide. There is no reason for loss of confidence, though there is reason for conservatism and increasing dis crimination in all financial transac- tions. Sixty leading stocks averags about 10 points higher than year ago. a very low advance compared with the rise in commodities and wages. But in this group thirty in dustrtals showed a gain of 50 points, while twenty railroads advanced an average of only points. The greatest need of discrimination. however. Is in some of the industrials. The chances favor a better market later en, with more or less liquidation in the. inter val.