South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-04-19

one time it conspicuOusly discouraged
enterprise and interfered with legit-
innate business, thus prUNing one Of
the most prolific sources Of empty
dinner pals. Pres't Wilson wisely
called a halt on these tendencies, and
the result is already beneficial. Had
it not been for the war. there is no
doubt that this country would today
have been enjoying a period of marked
recuperatiOn and prosperity Tie next
important source of Improvement,
also a comparatively silent one, is
the working of the new federal re-
serve system. This is having a help
tul effect upon business and creGit
operations. Our banking system is
now upon a sound basis and in a po-
sitiOn to meet all emergencies. Funds
are plentiful to good borrowers, and
If interest rates are high, il is not
due TO home conditions, but to forces
abroad beyond our control The
United States is now the only free
capital market in the world Foreign
nations are coming TO use for financial
assistance; and considering adverse
conditions. the amount of new capital
issues in this country is surprisingly
large, and demonstrates our healthful
recuperative abilities. For the salts
factory monetary conditions at home
new federal reserve system is very
largely responsible.
Another reason for stock market
recovery is the liberal dividend re
turns obtainable upon established in
yestments at present low prices. There
are any number of desirable bonds
and high-grades stocks that now Of
fer unusually attractive returns. A
further sources of encouragement is
81
timent. Confidence has taken the
place of fer. Purse strings are being
lOosened. boarding is stopped Funds
accumulated through fear, are now
being released Gold imports have
been resumed. The retail trade in
the great department stores in this
city has apparently turned the corner.
The steel industry is improving; so is
the textile industry. The demand for
automobiles is surprisingly good The
bOgie of foreign liquidation is dis
appearing. and the conviction that we
have fairly arrived at the turning
point for the better. is spreading
throughout the entire country. Wall
st. always discounts such movements
in advance 1t is engaged in that
operation just now; and, if we eX-
clude the war stocks. which have
risen for special reasons, we find that
thus far. made any extravagant ad-
vance Both railroads and industrials
Excluding the war group are still
selling considerably below the pre-
war level There is little doubt that
the railroad situation will soon show
decided Improvement. AS soon as the
volume of traffic begins to increase,
the effect of the better freight rates
will be reflected in earnings; and very
soon the crop situation viii receive
more attention. In this respect the
outlook is satisfactory, for the reason
that agricultural products generally
are bringing profitable prices The
south suffered considerably from the
recent depression in cotton, but cOndi-
lions in this respect are gradually
rectifying themselves. Better prices
are being realized for the staple. and
the south will probably partly recoup
itself through a wider diversification
of product.
The outlook for the market is for
continued activity. Speculation prom
Uses to turn to securities hitherto
neglected The violent advances of
the last few weeks may of course in
duce from time TO time considerable
profit taking. in which event sharp
fluctuations may be anticipated. all of
which Will tend 70 create a healthy
and more active trading market At
this writing the market exhibits sur
pTiSlug strength