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

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 N financial
history.
The most important immediate eff
feet of the loan was q very positive
Lplief in the sterling exchange sit
ilatioh. which had reached stage
that was rapidly making information
al trading impossible. Now that ex-
change is nearer normal conditions,
the currents OK foreign trade should
run with more smoothness. This
loan is, therefore. quite az much
benefit to ourselves as to the Allies.
Our exports arc also being stimulat-
ed as every one knows by heavy
shipments Of war materials; so that
in view Of continued small imports
the outlook il for continued huge
excess of exports running ut the
rate of about 100000 to $780,
100000 per month. Some experts
atreauy calculate that ii the war
continues. the surplus when the ifs
cal year ends will have reached any
where from sl.300.000,000 to $780,
600, 900.
Our harvest as whole Is the
largest and best or record. This
means continued prosperity on a
large scale in the agricultural dis.
tricts. The wheat crop is estimated
at 1,002.c29,000 bushels, or III ,000.-
600 bushels above the record crop of
1912. Corn is figured at 3.026, 000,-
900 bushels, or only 9s,0o0,000 bush
els below the record. Oats are ex-
pected to reach 1,517 100000 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 ofsabout 6 per
cent In acreage. Prices are lower,
but the farmers are sure of satisfac-
tory results. and the masses will Sc
cure cheaper food; while the rail-
roads must benefit unusually in the
carrying OF crops end 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
months 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 economies have
been put into effect and number OF
roads are already feeling the benefit
Of advanced rates. Although some
companies are still showing the adj
verse effects OF past conditions
quite a number Of STANDARD proper
ties such as Atchison, Pennsylvania
and New York Central are making
very encouraging progress.
The speculative situation has beer
materially improved by tho setbacl
to the war group, many of which
had been advanced to hazardous fig
ures. Liquidation weeded out veal
accounts and infused desirahl
spirit of caution respecting this PAL
ticular group. A bear party OF cor
siderable Importance has been Il
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 I,
railroads and the better class of in
dustrials which thus far have not adj
vanced In keeping with the rest o.
the market. The speculative spirit
seems to have been thoroughly
aroused, and in view OF an imprOy,
! Ing and more hopeful outlook. moth.
ing more than a temporary setback
Is expected and a fresh forward
J movement may DO anticipated as
soon as the present selling force has