South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-06-05

ca pitalization. while in the year just
ended they earned over Is per cent.
Building operations would prOba bly,
be upon "A larger scale were it not
for the high cost OF materials and
labor. which delayed many new en-
terprises. The railroads are de-
ferring their purchases for improve
ments and rolling stock as much as
possible for similar reasons. The
steel industry continues In satisfac-
tory condition and will be fully en-
ployed for months 20 come at profit
able prices. The one important fac
tor that is not encouraging is the
crop outlook the season being back
ward and without any bumper crops
yet i'm sight. on the other hand.
prices are relatively high and with
the surplus left over from last year.
moderate crops will insure good
prices for the farmer.
Stocks Under Restraint
The stock market is laboring under
several adverse conditions. and is
unable therefore 10 reflect the
favorable business conditions re-
ferred 10 above. Chief Of these OBJ
stacles are the presidential cam
paign. the war. our relations with
Mexico, the influx Of securities from
abroad and a somewhat closer
money market. The political cam
paign is really less exciting than
usual and seems To be one Of men
rather than Of issues The latter
promise 10 be mainly patriotism and
preparedness, with prospect Of the
tariff coming into prominence later
on. The war goes grimly on. There
Is flood of peace talk. but no trust
worthy signs of action in that direc-
ton thus far. The desire for peace
grows in intensity, but SO does the
bitterness Of the struggle. which is
not likely 10 end until defeat, actual
or potential brings submission.
Mediation just now would be useless
and possibly harmful. The Mexican
situation is again threatening and
delicate in the extreme This gov
eminent is certainly patient and
long suffering under an intolera bic
situation. The pressure of foreign
sales OF American securities has GER
tainly been a depressing factor in
this market, and but for this Obsta-
Gle many of our high class issues.
especially railroad shares and bonds.
would be selling at higher figures.
American investors have had excep-
tional opportunities of buying Amer
lean investments upon favorable
| terms, and these seem likely to con-
t1nue under the additional tax of
per cent upon the revenue of
British holdings of Americans Re-
liable advices from London intimate
that the British government will not
force or weaken the market for
American securities: a policy that it
undoubtedly follows from self-inter-
est and quite in line with previous
action. The consequent return of
foreign securities will tend as in
tended TO improve the foreign ex-
change situation and check the i'm
ports Of gold which have recently
been resumed by arrivals of over
S2S,0OO,O00 from Canada, where the
Bank of England has a considera bic
deposit. The local money market
has lately been somewhat firmer.
owing partly To the expansion of
loans and a desire on the part Of
bankers to exercise more discrimin-
alton. Bank reserves, according TO
the last statement, are down to
S67, 100000. a decrease of 100000
goo since the end of January. due
chiefly 10 a reductiop ~ go oOo oon
in cash reserves and in part to an
expansion Of $11S,0OO.OOO in loans
in the last four months.