South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-01-18
BUSINESS STILL
ON THE UPGRADE
Money is Easy" and Good
Feeling Prevails in Banking
Circles While Exports Con-
tinue to Increase, Says CIeWS

can securities are improving III most
encouraging fashion. There is a bet
ter feeling in both banking and hnan-
cial circles having its foundation in
positive changes for the better. The
credit situation has much improved.
Money is redundant and promises 10
continue easy for some time To come.
The new federal reserve system.
though not IN full running order, IS
working well and has already pTOvid-
ed much assurance and relief. Clear
ing house certificates have entirely
disappeared, and the Aldrlch-Nree-
land emergency currency Is being
steadily retired. There is no lack OF
funds to good borrowers. the accumu-
lation being due TO dull trade. TO the
return OF crop money. 10 the lower
ing OF reserve requirements from %
per cent 10 is per cent. and 20 the
fact that We are ia position TO draw
gold from abroad. Today We are
loaning money TO Russia. Canada, Ar
sentina, France, Sweden and else
where The war i'm Europe and our
own strong financial position have
caused striking shifts in the currents
of finance and trade, which will great
Is strengthen the prestige and power
Of New IOIR as an international
credit and money market Many Of
the transactions now taking place
here are OF course the immediate con-
sequence Of the disturbance in foreign
credit and when the war is over these
factors will disappear, not without,
however, leaving New York in po-
sitiOn OF advantage considerably
greater than existed before the Euro
pean conflagration.
Foreign Trade Encouraging.
By far the most encouraging ele-
meut in Il present situation is our
foreign trade. our exports are pro-
crossing by leaps and bounds. due to
prices and 20 practical resumption OF
liberal foreign orders for war mater
ials. to heavy exports of wheat at high
cotton shipments. The outward
movement on these accounts is by no
means at an end. and the orders for
war materials promise TO run TO even
much larger amounts. The effect OF
this fOreign demand for American
products at a time when imports are
running comparatively light, Is To
leave "a heavy excess of merchandise
exports estimated at $4,000, 600 in
December and as much as $40, 100000
i'm the first week Of January. If these
tendencies continue, conditions Will
soon favor "a large influx of gold, un-
less Europe should send back Amer
lean securities more freely than at
present. OF unless European banks
movement by artificial means. This
week VIC have been surprised by the
announcement OF about S3.0OO,OOO OF
gold from China 10 the United States.
The concern responsible for this un-
usual movement explains that this
transaction was zone through the
home office i'm New York instead of as
usual through its branch office in Lon
don. A small consignment is on the
wa vfrom France, possibly for Cuba.
Should New York draw gold from
London-as is probable if British mer-
chandse exports decline-it might
come from ottawa, where the Bank OF
England has a special deposit, or 1t
may come direct; though the Bank
Of England would very likely endeavor
TO check my large gold movement IN
this direction. The Russian govern
ment IL IS announced. has placed
credit of $4,000 i'm New York to be
used for payment of war materials.
France also recently deposited $1,000
600 i'm New York and from both
sources larger sums are expected TO
follow, which means continued actiV-
itv for certain American industries.
Industries Are SpOtty.
Our industrial situation is still
somewhat spotty. As just shown,
special lines are enjoying exceptional
activity owing 90 the war. and since
there are no signs of early peace This
feature promises 10 continue for some
time 10 come The steel industry is
enjoying somewhat better prospects;
this being due 10 the general spread
of hopefulness. to better buyins from
the railroads since the rate decision
and i'm q small degree owing TO for
eign orders. The steel trade, however.
is still far below normal and prices
while frmer are very low. There Is
also better feeling in the great tex
file trades. though here the conditions
are somewhat mixed. Some branches
OF the wooden industry have benefited
bv the war, others have been injured
hv the resulting interference with
wool supplies. Large importatiOns OF
w0Glens under the new tariff have also
materially affected this branch of In
dustry The cotton goods trade is in
rather better form, cheap cotton being
an important relief. while better eN-
port orders lost 10y some OF the bel
Iigerent countries served To nh i'm the
lack of home trade. our textile trades
have had many adverse conditions 10
contend AGAINST bat most OF them
now appear 10 Toe matter OF history,
and the final adjustment OF the Calfiin
failure is an additional element OF en-
couragement. There is one other slim
ulant somewhat local I'm its effects
FOR wheat and all foodstuns. That is
exceedingly satisfactory 20 the farmers
producing these articles and leaves
those sections exceptionally prosper
Gus.
Railroad Situation Improves.
The railroad situation shows some
Improvement and managers have been
decidedly less pessimistc since the adj
vance in rates. which viii soon go into
effect During the past week there
has been some Improvement IN the in
vestment demand. particularly for
bonds Farther evidence OF renewed
confidence is shown in the offerings OF
new issues of stocks. as we'll as bonds
The outlook for high-grade bonds Is
favorable. as many of these have evil
IDENTIFY touched their low point and are
now selling at very attractive figures
IN the purchase of stocks. more or less
discrimination Is desirable. There are
many stocks selling at prices which
rffrfH raf IN 80