South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-07-24

early future. A change of signin-
canoe is the improved situation in
real estate. Mortgage rates declined
from 5 1906 year ago 10 4 1-2
a per cent. Vacant office build
ings have been largely filled. often
al lower rates; money is once more
seeking investment in this direction;
dealings are on a more active scale;
building permits are increasing, and
the only obstacle to further activity
is the high cost of building due TO
dear materials and the scarcity Of
labor.
Bear Terrific Strain.
one of the unrecognized marvels
Of the present war is the financing
done by the British government.
Nothing approaching it has ever
been witnessed or even conceived
possible. Chancellor McKenna re-
Gently said war was costing Britain
S3O.OOO.OOO daily, which is at the
rate of over 10 billions a year. Such
figures stagger the mind; and yet,
as just said. the end of these re-
sources are not yet i'm sight. and
the strain though terrific is borne
with relative ease Britain's finan-
cial skill and strength has been
chiefly displayed in her control OF
foreign exchange and the ability TO
pay her stupendous war bills. 1t
Is over "a year since the British gov
eminent issued any permanent loan.
having paid expenses out of cur
rent taxes, treasury bills and short
term obligations. The chief sources
Of British financial strength have
been huge foreign investments, un-
eNampled banking resources and
control of a vast supply of gold and
high grade securities. Great Britain
has sent about $500. 100000 of gold
towards payment for her purchases
in this country. She has also sent
over American securities estimated
at about 81 500. 100000; so that her
share. of payment for the $2.165,-
GOO, OO0 excess exports in the fiscal
year just closed must be closely
settled. 1t is of course we'll known
that Britain has borrowed large
sums in this market upon foreign
owned American shares as collat-
eral; thus preventing any unneces-
sary liquidation of such holdings.
But her borrowing capacity does not
end here by any means Great Brit
ain owns $4,000, 100000 foreign Sc
curitieS outside of Americans. which
she could easily put up as collateral,
4 oh =
900 Of home railway securities upon
which she could borrow heavily if
necessary The British government.
however. is financing the war as far
as possible upon the pay-as-you-go
plan. and in this she is receiving
material assistance at home from the
economy campaign which has large
Is increased the savings Of the work
ing classes and SO added TO her
financial strength This war has de-
velOped many wonders. but none
more striking than Germany's milf
tary prowess and Britains financial
skill and strength.
War Dominates.
War is the dominating factor In
the Sl0Ch market me lnuuSlIldlS
directly affected huctuate sharply as
prospects for peace increase or di-
minish. The best opinions are di-
vided as 10 an early end 10 the
struggle. for the reason that while
the allies are making steady gains.
Germany would not be willing 10 ac-
cept such terms of peace as her
enemies would be likely 10 require.
financing foreign loans is having a
very decided effect upon the better
Grade stocks. especially railroads. In
the first place these loans absorb
large amounts OF American funds.
which otherwise would be used in
developing home enterprises. in the
| second place Great Britain at every
opportunity judiciously feeds out
/ foreign owned stocks. Great Britain
is not likely 20 spoil her market by
| forcing these sales. but such per
| slstent offerings are sufficient 10 pre-
vent any great advance here. The
absence OF Wild speculation under
| such stimulating conditions is re-