South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-10-11
WAR LOAN RECORD
IN F NANCE HISTORY
Henry CieWS Declares Ii Makes
New York Center of Worlds
Money Market.
BY Henry CIcws.


NEW YORK, oct. 1I.-Placing Of
the allies loan Of 100000 600 in New
York must be rezarded as the great
est transaction and the greatest sue /
cess in financial history. For the
time being &c gives New Yor', un-
qualified primacy in the worlds
money market. and. though London
will undoubtedly regain its leader ship
after the war. tne Importance OF New
York as a financial center has been
permanently advanced to "a close sec
Ond. the strength and position OF
European financial ccnters having
meantime been spOudingly di-
unfinished. HencefOrth London and
New York Will be the controlling fac
tors in the worlds money markets.
Should they ever choose 10 work to-
gether. as ia the present Instance,
they viii prove irresistible More
likely, however they VIII prove keen
though friendly rivals I'm the coming
struggle Tor the worlds markets; for
without support OF the bankers. our
merchants and manufacturers cannot
secure the coveted trade, after which
the United States as well as the
United Kingdom is going in search
with all its power and capabilities
The most important immediate ef-
feet OF the loan was "a very positive
relief in the sterling exchange situa-
ton. Now that exchange is nearer
normal conditions, the currents of
foreign trade should run with more
smoOthness. The season is openins
when the nOOdtide of exports beg MS.
Shipments Of grain, cotton and other
natural products wiz continue TO run
on a heavy scale for several months
10 come. Europe needs our big sur
plus; and fortunately we have plenty
TO spare. Indeed we must sell. for if
our farmers do not find a good mar
ket for this surplus, the result here
would be disaster and discomfort.
This loan is, therefore. quite as much
a benefit TO ourselves as to the allies
War and Peace Discounted.
The war has been lt,I sely, if not
entirely, discounted We are now dis
counting the approach of peace. Ow-
ing TO the numerous cross currents in
trade, il is almost impossible to pre-
diet what the ultimate effect of the
war viii be upon this country. The
world at large cannot benefit from
wholesale destruction. Nevertheless.
tho United States, unhampered by the
arrangements and Interruptions fall
ing upon other nations. will be free
TO continue the natural development
of it's resources and to aid TecOnstruc-
ton abroad, which will inevitably
make large demands upon American
manufacturers. Undoubtedly the
early future Of this country promises
a period of prosperity resulting from
a larger share in the worlds trade.
AS an offset, however. we must take
into consideration that EurOpes buy
ing power Will be temporarily inn
paired, that the cost of production in
Europe will be placed at the lowest
limit and that we shall not secure
these foreign markets without
struggle in which we may be tempo
raTily handicapped by imitation and
high prices in the United States re-
sulting from present abnormal con-
ditiOns and the great expansion of
credit All indications point to in
creased domestic activity during the
approaching autumn and winter
months.
Harvest Record Breaker.
our harvest as a whole is the larg-
est and best on record. This means
continued prosperity on a large scale
in the agricultural districts. The
wheat crop is estimated at 1,002,029,-
600 bushels, or 100000 bushels
above the record crop OF 1912. Corn
is figured at 3,026.00O.000 bushels or
only 9S.OOO.OGO bushels below the rec
ord. oats are expected 10 reach l.
100000 bushels, or S91.00O.0O0|
above last year. These three crops
show an increase of about 20 per cent
over the average of the last four
years upon an expansion for the year
OF about 6 per cent in acreage. Prices
are lower, but the farmers are sure of
satisfactory results. and the masses
will secure cheaper food: while the
railroads must benefit unusually in the
carrying OF crops and i'm the stimu-
lus TO general business they afford.
This big harvest is the best thing that
has happened 20 the railroads in a
long period. and may be of more
value to them than the small con-
CesSiOns granted by the interstate
commerce commission. The activity
OF the steel trade, the largest indus
try in the country. and the prospects
of its continuance for months to
come. are already matters of common
knowledge The railroad situation
continues 20 improve. traffic is grow
ing. Decreases in earnings are be-
coming less and less conspicuous. I'M
portant economies have been put into
effect and number of roads are al
ready feeling the benefit of advanced
rates. Although some companies are
still showing the adverse effects OF
past conditions. quite numb er of
standard properties such as Atchison
Pennsylvania and New York Central