South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-09-20
F FINANCIAL WORLD
SHOWS STRENGTH
CIeWS Points Out Weeks De-
VelOpmentS With Germany
Encourage Confidence.
BY Henry CIcws.

continues 10 suggest a substantial I'M
dertone The weeks developments
again encourage confidence that a
satisfactory settlement will be reached
Of the renewed strain in our relations
with Berlin that followed the note
from the German foreign office seek
ing to Justify the sinking Of the steam
snip Arabic. The note was diSap-
pointing. in view Of the assurances
previously given on behalf OF his gov
eminent by Count Won BeTnstOrff, the
German am bassador. However, there
seems real basis for the belief that
the entire question of submarine war
fare. as affecting the interests OF
Americans is now in satisfactory
way OF adjustment. What is of equal
importance from the financial view
point is that this settlement promises
10 be permanent in character, thus
removing what seems 10 be the prime
source, IL indeed not the sole source.
from which future shocks to the
friendly relations between Washing
ton and Berlin might be expected.
Predicts Loan Success.
While the negotiations just referred
20 have been in progress there, not
unnaturally has been some indication
OF restraint upon entering new stock
market commitments Additional in
centive for delay. too, has appeared
from the varying reports concerning
the probabilities of the successful 10
tatiOn OF the large loan or credit that
the British and French commission
ers have come over to our center to
negotiate. No specific details seem
10 have been announced thus far OF
the proposals the commissioners are
prepared to make or accept. That
the visit OF these foreign experts must
end with success is, ] think a fore
gone conclusion. The question is one
as Vita 10 the interests of our own
country as il is to the countries across
the sea. II our grain and foOdstuffs
in general are TO be sold to the ma
tiOns that under current conditions
are our natural customers, if, too, the
products Of our factories as we'll as
our farms are TO go forward in such
volume as will mean prosperity at
home, it is imperative. under present
unexampled conditions, that proper
financial facilities be afforded the buy
ers. The question is the old one that
is so frequently misunderstood of the
difference between money and wealth.
There is no question that the British
and French governments have ample
wealth with which To back up any
obligations they may undertake The
terms on which the credits they de-
sire may safely be left to the wisdom
Of the expert interests who are con-
Quoting the transactions. 1t would be
conservative and good judgment, 1
think. 20 cOnfine the credit, at any
rate to start with, to say 500 millions.
Means Much for U. :.
The success Of the negotiations as
/ have minated means much for our
own country. 1t would provide in
the first place not only for the con-
tinuance. but for a very substantial
increase in the volume of our eXpOr-
tatiOns. 1t has what may be termed
a vital bearing upon the great granger
sections of our country since it viii
decide whether the entente govern
ments viii be prompt and liberal pur-
Chasers of our grains at remunerat1ve
prices at the beginning of the season
or whether they viii give preference
to other sources of supply and hold
back so far as our own grain is con-
Cerned until the eleventh hour. This
would expose our grain more freely
to the possibilities of the release of
the huge quantities of Russian wheat
the growth of two seasOns-that
are stored up awaiting the opening
Of the Dardanelles AS TO the date
that this event will occur any predic-
tion would necessarily be mere guess
work There are some authorities
who are convinced that the task is
superhuman. on the other hand,
with four OF the worlds great nations
deliberately proceeding TO accomplish
this great task and making actual
even though slow progress day b.
day the possibility Of success is such
as - clOthe the subject with sufficient
importance to merit consideration as
one of the prime factors in the broad
financial problem.
Securities Improve.
With the possibility of the United
States becoming an active participant
in the European struggle so greatly
removed and with the success of the
Arglo-French loan so clearly in sight
the outlook for the market for Sc
Curities may he regarded as having
CorrespOndingly improved The IA
VOra BILE money outlook will not be
modified materially by the practical
steps that will be concerned i'm the
credit that is being arranged. The
proceeds of the loan are not to leave
the country. They Will remain on
deposit in the ban--s and trust COM
panies until needed and viii return 90
the banking institutions when the pay
ments for supplies for which they are
intended are made. According TO last
SATURDAYS New York clearing house
statement. the banks and trust com
panies added more than $4,000. 600
20 the already uneXampled surplus
carried above reserve requirements.
bringing the total up 90 $224.122. 1000.
which compares with a deficit Gin
stead OF a surplus) OF S&50 COS. 900
last year at this date, which OF course
was a period when all the financial
industrial and mercantile activities OF
our country were suffering the first
shock of war We now have reached
the active period OF crop financing.
II is evident that there is 90 be no
strain resulting from this feature dur
ing the present year. The secretary
Of the treasury has announced a pol
icy OF depositing government funds in
the banks OF the south 10 aid in finan-
cling the cotton crop. Even without
such arbitrary action and n the sup
piles OF funds We're not as completely
redundant as they in fact are, the
operation of the new banking law
would be sufficient 20 prevent any inn
portant strain i'm money circles as n
whole
u. S. GETS NEW TORPEDOESI