South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-11-15
BANK CLEARINGS
MAKE BIG GAINS
Principal Cities Over Country
Show Increase of 81 Per-
cent Over Last Year.
By Henry Clevvs.

lngS last week at principal ClIleS az
gregated $4,000, 900. 600, or 81 per
cent more than a year ago. This is
an astonishing gain. The ratio of in
crease was los per cent at New York.
SO per cent at Boston, 36 per cent at
Philadelphia, % per cent at Chicago,
Al per cent at St. Louis and 81 per
cent at New Orleans Of course the
stock exchange, which was closed a
year ago, had much TO do with swell
ing the total in this city But outside
of New York, where financial opera
tions were more nearly on a normal
scale. the gains were also impressively
large and proved conclusively a wide
spread business expansion. The re-
turns for the month of October were
equally significant the total being
$2O, 900, 600. 900, against $11. 700, OOO.-
900 a year ago. Here was an increase
| York showing a gain of 121 per cent,
and all other cities a growth of 20
per cent
So much for bank clearings as evil
dence Of trade revival. What about
railroad earnings? In the third week
OF october 80 roads reported earnings
of S14, 100000; an increase of s2,100,-
600, or over II per cent Previous to
October the railroads had been re-
porting more or less serious losses, out
these diminished sharply during Sep
TENDER and turned into steadily in
creasing gains in October The latest
returns are even more encouraging,
many of the big trunk lines both east
and west showing very handsome re-
-. Nf.,,,1 I'll s1l, Ic
Burlington, New York Central, Penn
sylVania, Canadian Pacific and others.
Bigger tonnage, better rates and low
er expenses mean good net results.
The number of idle cars November
was only 5000. compared with 170,-
} 600 year ago.
Iron Trade Active.
The iron trade continues to furnish
examples of unprecedented activity.
Since the first of September orders for
over 100000 tons Of rails have been
placed. about $50 locomotives and
more than $4,000 cars. This only rep
resents a portion of the new activity
In the steel trade as some of the rail-
roads are building considerable equip
. ment on their own account, and the
steel companies have received large
orders for outside construction work;
not to mention munition orders. The
report of untitled tonnage issued by
the United states steel corporation,
? which is running nearly 100 per cent
capacity, surpassed all expectations:
/, | showing an increase of S47, 900 tons as
compared with the amount of business
! on the books in the previous month.
: Prices for steel are steadily advanc-
ing, and this industry is now enjoying
a period OF prosperity which In some
respects surpasses all others on rec
! ord. The facts just cited prove in
! dustrial revival, based as stated in our
l previous adviceS upon big crops,
> abundant money and foreign munitiOn
: orders. This activity is already spread
: ing TO various branches Of trade The
textile industries show a healthy tone
interior merchants having been often
caught with comparatively empty
shelves, which are now being replen-
ished. Labor Is well employed and
generally at good wages
4 on the stock Exchange speculation
slowed down somewhat; the rapid ad-
vance of the last few weeks having
induced moderate realizing and tenn
r pOrary reaction. More or less foreign
S selling was detected at the higher
prices. and the decline was further
accelerated by operations of a local
i. bear clique. The weaker shares were
( the war industrials, from which at
tention has been wisely diverted to the
. more substantial railroad and indus
i lTlal securities. lSlQulOdllOn, however,
r appeared to have no serious effect
: upon the market, and on the decline
I there was good buying for all the more
desirable issues, indicating a good un-
dertone. The war still has q powerful
| indirect effect upon this market
the past week war developments have
not been Of a very encouraging nature
I since they suggested a prolongation
rather than a shortening of the strug-
gle. The possibility Of further fric-
ton with the central powers over the
conduct of marine warfare also ex-
2 erted an unsettling effect. The con-
! tinued withdrawal Of ocean tonnage
; for war purposes is having q tendency
TO restrain exports, the result being
less pressure of comercial bills and an
increased firmneSs in foreign eX-
change. The situation Of the latter
was favorably affected by the success
full negotiations for establishing Brit
ish credits to the extent Of $50 000,-
600 or more with New Y orlx banks.
End OF Rise Not Yet
AS for thefuture of the market
while reactions such as those witness
ed during the last few days are proba-
BILE and, necessary. the forward move
ment does not seem to have reached
: It's climax. OF course, there will be an
] end to the present rise but that end
: Is not yet in sight. Tn eimpetus of bis
nor is there anything to counteract the
: latter except unfavorable developments
: growing out Of the war. Another very
3 powerful factor is the inflationary ef-
3 feet Of the new federal reserve sys-
TEN; both of which have laid the basis
for a tremendous expansion OF credit
The allies are bound to continue com
ing here for a large portion OF their
supplies, and having less merchandise
to send in payment, they must con-
tinue 10 ship gold as freely as possible
buying on credit what they canot pay
for in merchandise. OF course, this
, imposes a heavy strain upon the allies
which cannot last indefinitely: but
their resources do not yet apear to
have been overstrained. When the
war ends there will be some big work
: TO do in financial rehabilitation. and
J the ability OF our financial leaders
! will be taxed quite as s everely as
when the war began. But fortunately
lfhnra will ho %