The Washington times., 1915-10-10
WEEK IN FINANCIAL CIRCLES

] with each succeeding week the
| movement toward what gives promise
OF being the period OF greatest pros
perity ever enjoyed by the United
! states gains momentum.
the most recent contributing factor
| was the successful negotiation OF
me sboo,ooo.ooo loan to France and
The primary purpose Of this great
rhere We're vast debts owing to the
United states by the allies for which
Pc cared for from the sale of the
*ovo,0oO.000 worth OF bonds.
| But THIS loan was not only to pro-
viue payment for past purchases. 1t
was 10 enable the allies to continue
| puyihy on a large scale in the Amer
icAn market. Its flotation could not
nave peen undertaken at more op-
perfume time.
Inc largest item In last year'c
Jumper exports waD food products.
INC demand for foodsturs must con-
nnue to maintain In, the field the
great armies of the contendina coin-
,@ries, @ anc according to the Govern:
ments October crop report published
= rev days ago American harv6sts
eYsr eH,s year. nrnd,,S VIII be the most valuable
a large part OF the wheat crop. es-
timaEs for which are 2.029. 900
bushels. or the largest ever produced
rnS n one season by any nation. is al,
on the market. The corn crop, at
prevailing prices, is worth s2,133. .6Oo.-
wv. and practically all OF the other
1909 staples. with the exception Of
wnite potatoes. shows a substantial
increase over average production.
nad the purchasing power of
france and Britain. since the war the
Two largest buyers in the American
markets. been curtailed through in
lustment OF the sterling exchange
situation. this prosperity which the
country generally has come to re-
gard as a reality would have received
sudden and severe check. since the
american farner-.creator of the do
mestic demand-would have had a
vast unsaleablc surplus.
NV nmch q situation; howsver. does not
visions OF the loan yet await official
ra.incatiop. 50 satisfied are the un-
ZION inh OF their plans that the bonds
nave already made their appearance
on the stock ticker tape.
In a statement several days ago 10
pond statesmen who nre to undertake to
dispose Of the securities in the Eastern
cities. J. p. Morgan declared that not
since the civil war has any government
bond paid such u return.
The establishment OF the foreign
credit paves the way for the piing up
OF an even larger foreign trade balance
than was established last year. Al the
same time domestic demand Is stead
lily improving.
The steel industry. which has been
rapidly expanding since few months
after the outbrsax OF the European
war. has now reached a stage OF ac-
urity that promises to rival all previous
September made an astonishing rec.
ord for the output Of both steel and
pig iron. and the pace was even faster
In the first week Of October. Rail or
ders. which must take their turn at the
| mills with the enormous foreign con-
tracts for shell steel. were placed by "A
| dozen lines In the past week. and
amounted to 100000 tons. with s6oo0 tons
yet to como from New England road
Northern. the Missouri Pacific. the Mis-
so, ri. Kansas. and Texas. and the I'LL
| nois Central.
Notwithstanding the fact that tho
mills are running pEctically e., at Gu ca
poration reported for the month Of
September an increase in untitled ton
mage of more than 10000 tons.
Another Indication Of the faith II the
American public in what the, future
holds for their country Is found In the
unrestrained manner In which dealing
| on the New York Stock Exchange Is
pursued. Never has there been so long
a period Of consistent activity in the
history of this market. There have
| been liz the past days which exceeded
any daily total OF the current car, but
in all the history Of the stock ex-
change there can be found no record.
until the present time. Of day after
day OF enormous dealings based upon
| expanding countrywide interest In
speculative and Investment movements.
| At last the interest OF these invest
ors. for months centered upon tho Sc
| curities OF industrial corporations en-
gagged in the manufacture Of munitions.
has switched. in a measure at least. to
| railroad stocks.
This change has been brought about.
not only because Of n realization on the
part of spectators and investors that
| the issues Of the industrial concerns
were being driven up at an unsafe pace.
but rather from conviction that tho in
| creased earnings Of the railroad com.
panics gave to the stocks OF the trans
portation lines a higher value than they
had been quoted at
This delayed Improvement in railroad
earnings has been brought about In the