South Bend news-times., 1915-02-14

movement nay run as high as S1O,-
100000 but we do not need gold
while Europe does. and under existing
conditions IL is more advantageous to
Europe and 10 the United States to al
low these credits TO stand. We have
thus become a creditor instead OF a
debtor nation.
abundance of LOanabIe Funds.
The most important local factor in
the financial situation is the abund-
ance Of lOanable funds at reasonable
rates This is due partly TO the dull
ness in trade and partly 10 the salts
factory workings OF the federal re-
serve banking system. There has
been steady expansion in loans
which now stand at $2221,0OO. 600
against $2,189.O00. 900 at the opening
Of the year Bank reserves have de-
clined somewhat in consequence. but.
the surplus last week was still above
S14O 100000. Investment conditions
have improved as shown by the ready
absorption OF really high-grade bonds
and stocks. Some OF the latter are
selling at very low prices, compared
with current rates for interest Stock
exchange values have been subjected
TO sharp fluctuations. The passing Of
H. - --AtEA ulNAQtHQ anu announce
ment of the New York Central's new
issue were both signals for bear at
tGcks. although they represented
conditions already passed. There
was some fear also that the Canadian
Pacific dividend would be reduced but
these apprehensiOns proved unfOund-
ed. The posi- bility of an extra ses-
sion for the purpose of passing the
ship purchase bill is an unsatisfactory
feature inaGn1nch n "A x the tErf1l he
glad TO see congress adjourn at its ap-
pointed date March 4. The uncer-
tainties of war also caused moderate
fluctuations in the security markets.
There are thus sufficient depressing in
fuences as to keep the market more
or less unsettled and afford the op-
pOTtUnity for creating a bear party OF
some Consequence. Nevertheless. in
trinsic conditions are steadily improv-
ing: the best evidence Of which, as
already stated, is the activity in new
financing.
Gain I'm Confidence.
There is a continued gain in bust
ness confidence, also some. though
limited, Improvement in the volume of
business. Bread is advancing owing
TO the high cost of wheat, brought
about of course by war conditions.
Grain has already risen dangerously
high; and present prices naturally
yield gratifying results to the faA m
er, as all food prices are rising The
southern cotton planter is also getting
a better price for his product. These
are comfortable times for our farming
classes, since conditions encourage the
largest possible production at good
prices for nearly all agricultural
products. January railroad earnings
were exceedingly unsatisfactory and
often showed large decreases. Yet
later freight returns show an increas-
ing movement, and there is reason to
hope that the railroads have seen the
worst of their troubles. In another
aspect the tide seems also to have
turned FOR the better that is in the
iron trade. In the export division a
much better business is being done,
and our own railroads are placing
more liberal orders for equipment
than for several months. As prices
are also steadier there is abundant
evidence that the steel trade is now
on the upward grade. although the
pace may be disappointingly slow. |
Nevertheless the industry is now run
ming upon a 60 per cent basis, COM
pared with 50 per cent a few weeks |
ago.
Business this week was somewhat |
interrupted by the holiday. but indica- |
tiOns point to a more active and ir-
regular market. Should nothing oc-
cur to prevent the present reviving |
tendency of confidence, we may look |
for a still higher market. but pur-
chases should be governed with eX-
ceptiOnal caution and sharp reactions
are possible at any time.