The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-10-11
IS
ROSY FOR
UNCLE sam.
Bumper Crops Spell
Prosperity, Declares
Henry Clews
FOREIGN TRADE
GIVEN BOOST
Loan to Allies Sure to
Prove Effective
Stimulus

NEW YORK, Oct ll.-Henry
Clews In his weekly review of the
trade situation. says In part:
Placing of the Allies loan of $780,
900 900 in New York must be re-
garded as the greatest transaction
and the greatest success in financial
history.
The most important immediate ef-
feet Of the loan was very positive
relief in the sterling exchange sit
uation. which had reached stage
that was rapidly making information
al trading impossible. Now that ex-
change is nearer normal conditionE,
the currents OF foreign trade should
run with more smoothness. This
loan is, therefore, quite as much a
benefit to ourselves as to the Allies.
Our exports are also being stimulat-
ed AS every one knows by heavy
shipments OF war materials; so that
in view Of continued small imports
the outlook h for a continued huge
excess of exports running at the
rate of about 500. 900 to $780,
100000 per month. Some experts
already calculate that If the war
continues. the surplus when the ifs
cal year ends will have reached any.
where from $1,000, 100000 to $780,
00O, 900.
Our harvest as whole Is the
largest and best on record. This
means continued prosperity on
large scale In the agricultural dis
tricts. The wheat crop is estimated
at I,002.c29. 900 bushels, or Ill .000,-
900 bushels above the record crop OF
1912. Corn Is figured at 3,026, 000,-
900 bushels. or only &c. Du1. 600 BUSH
els below the record. Oats are ex-
pected to reach 1.517. o00, 900 bushels.
or sol 100000 above last year. These
three crops show an increase of
about 20 per cent over the average
Of the last four years upon an ex-
pansion for the year OF about per
cent in acreage. Prices are lower,
but the farmers are sure of satisfac-
tory results, and the masses will se-
cure cheaper food; while the rail.
roads must benefit unusually in the
carrying Of crops and in the stimu-
lus to general business they afford.
This big harvest is the best thing
that has happened to the railroads
In 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 industry In the country, and
the prospects OF its continuance for
moths TO come, are already matters
of common knowledge. The railroad
situation continues to improve, traf-
fic is growing. Decreases IN earn
ings are becoming less and less con-
spicuous. Important economics have
been put into effect and number OF
roads are already feeling the benefit
of advanced rates. Although some
companies are still showing the ad-
verse effects of past conditions,
quite number Of standard proper
ties such as Atchison, Pennsylvania
and New York Central are making
very encouraging progress.
The speculative situation has been
materially improved by the setback
to the war group, many Of which
had been advanced to hazardous fig
ures. Liquidation weeded out weak
accounts and infused q desirable
spirit Of caution respecting this par
ticular group. A bear party OF con
siderable Importance has been In
operation, and any decided shrink
age in this department would prob
ably be quickly followed by new buy
Ing on both long and short account
Attention 10 now being attracted to
railroads and the better class of in
dustrials which thus far have not ad-
vanced In keeping with the rest Of
the market. The speculative spirit
seems to have been thoroughly
aroused, and IN view OF an improv-
ing and more hopeful outlook. moth
ing more than a temporary setback
Is expected and fresh forward
! movement may BIO anticipated as
soon as the present selling force has