South Bend news-times., 1915-02-14
NEW F managing
IS EVIDENCE Of
BETTER TIMES
Henry CIeWS Says No Better
Indication of Improvement
Is Found Than in Issuance
of New Bonds.
BY Henry C1c,vs

NEW YORK. Feb. I3.-No better
evidence of financial Improvement
could be recorded than the increased
activity OF new financing. hmm ediateIy
following upon the opening OF the war
there was a sharp contraction in new
capital applications. the total of which
recorded for the last seven months
reached about S4SO,0OO.000. or 1885,
600. 900 less than the same time last
year.The lowest month was Septem-
Der. when the applications fell below
S2S.00O.000. Recovery has been
gradual. and in January the total was
Sl2T 900, 600, or only $4,000 900 below
the same month IN 1914; while the
total announcements JhSs far in Feb
ruary already exceed 100000, 900
bonds. including 1OO.0OO.00O New
York Central, $27.00O,000 New York
state, and $15,0O0.0OO Canadian Pa
cific, besides a number of other i'm
pOrtant issues. The January total
was Of course swelled by the Pennsyl-
Vania issue OF $49.OOO,OOO Total is
sues In February last year were $780,
600, 900. A considerable portion Of
current new issues is for the purpose
of adjusting material obligations but
the significant feature is that these op-
erauOns could not have been success
fully carried through a few weeks
ago; while now IL looks as If other
Important hOtatiOns will follow so
that this February Will considerably
exceed the same month a year ago.
While We are facing beyond doubt an
urgent demand for capital, 1t is not
likely under existing business depres-
sion that there will DC any great de-
mand from any eally new enterprises.
This year an extraordinary volume of
short term notes and other obligations
mature which Will have TO be extend
ed or turned into fixed forms. the lat
ter method being the most probable.
New Demands for Capital.
There is also another and very sig
nificant trend in the new demands for
capital which is that nearly every
important nation IN the world except
Great Britain is either borrowing in
the United States or wishing 10 bOr-
row This is due TO the war. Lon
don has practically retired as the
worlds banker for the purpose of de-
voting its whole financial resources to
conduct of the war. OF course, this
withdrawal is temporary, yet 1t offers
an unusual opportunity to the United
States because New y OTk is now the
only free capital market in the world,
and hither will come a large portion
of the new capital applications. At
present the war IS being carried on
by all belligerents largely by means
of short term obligations. although
Great Britain is aiming TO pay con-
siderable share as current expenses.
Later on these war debts Will be turn
ed into more permanent forms Of in
Vestment. All of the belligerents have
established extensive credits in this
market, for the purpose Of puTchas-
ing war materials, immense quanti-
ties of which are being steadily ship
ped 10 Europe This movement will
continue as long as the war lasts. and
is proving a very vital factor in swell
ing our exports. large quantities of
ammunition. automobiles. clothing,
etc. leaving American ports every
week. our exports are being further
expanded by heavy shipments of
wheat and cotton. Meanwhile our
impOrtations are running very light.
owing 10 the interruption of supplies
by the war: and in the week ending
Feb. 6, the excess of exports over i'm
ports was estimated at S3I,O00.0O AS
a result of these International opera
tiOns. fOreign exchange has again de
clined 20 the lowest point since 1907.
Gold imports from China and Can
ada are coming at "a moderate scale,
and larger amounts would follow
were it not for the establishing of the
foreign credits referred to above. Ii