South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-07-17

tion Of the treasury in depositing its
funds with the federal reserve
banks. instead OF with national
banks which were obliged 10 furnish
collateral for such deposits. The
government has recently transferred
large sums from the national banks
10 he federal reserve banks. and
this has had considerable To do with
the shrinkage In reserves at this
center
Foreign Trade.
Our foreign trade has surpassed
the most optimistic expectations. the
total for the fi.cal year ending June
being $4,000 coo. 600. This is much
the largest total on record. and must
be chiefly attributed 20 the war FIX
ports amounted to S4.345. 600
and imports S2.18O.0OO.O 900. leaving
an excess in exports Of S2.l65. 900,
600. The principal articles Of ex-
ports we're steel products, SIS mil
lions, nearly treble last year; ex-
plosives. 473 millions. "A tenfold
gain. cotton go millions: bread
stuffs. 314 millions; meats. 27O mill
lions, coffee. 10 millions: mineral
oils. l65 millions. brass. 126 mill
lions; autos. 1913 millions. chemicals.
1913 millions, and horses. % millions.
IN imports the principal amounts
were iibers. 131 millions. copper, 50
millions; wood manufactures. 81 mill
n
manufactures. ~ millions. These
are marvellous results, and decided
reactions may follow the arrival OF
peace. or course the impaired buy
ing power OF Europe will act adj
yersely upon articles Of export; but
10 must be remem bered that the bulk
Of our exports are made up of ne
cessiues such as food products. cot
ton. petroleum. etc. The demand
for many Of these products. includ-
ing our steel manufactures, will ac-
tually increase when reconstruction
begins i'm Europe: and the first and
probably only things which the bel
ligerents Will refuse 20 buy any
where will be Injuries. which con-
stitute a very small portion OF our
exports. Before Europe buys from
us with any freedom she must be
prepared 20 send us merchandise in
stead Of securities. or gold which
we do not need. and which we are
simply taking because OF the induce
ments they offer.
War Drift Peaceward.
Very little real change can be de-
tected in the financial situation, for
better or for worse. The war drift
is peacewards. the increased in
tensity Of hostiIities Fastening the
end Mexican affairs have settled
down into a state OF quietude, which
may be permanent if the concilia-
tory spirit on both sides prove sin
cere and stable The domestic politi-
cal campaign has not yet started,
and the real drive will not begin
until both candidates have formally
announced their acceptances and
policies. General business is fairly
active. hat summer quiet is spread
ing Some Improvement is reported
i'm the crop situation as a result of
the ayvrm spell. The corn crop was
estimated by the government report
al 2.S66.OOO. 600 bushels before the
recent rise in temperature, or only
] so. 600 900 below last year; and the
wheat crop at T59. 900. 900. or 252,-
600. 600 bushels less than last year.
But 100000 bushels OF wheat are
left in farmers hands from last year.
and il must not be overlooked that
last years crop OF wheat was phe-
nOmenal and corn exceeded the
record Bank clearings and railroad
earnings prove 10y their large gains
the sustained increase Of business
activity Such figures are of course
10y high prices; though the
upward tendency in many commodi-
ties has. been stopped. and not a few
articles have declined. with indica-
tious of further weakness coming.
There is a confident spirit among
business men i'm general. based upon
"a sound development OF the cOun-
try's resources. and no longer upon
the war which seems 10 have spent
its extreme influence upon Amer
lean business affairs. In future the
war will be "A factor chiefly in the
of peace. which in some
cases win naturally require radical
adjustment of output and prices TO
the new basis. This process has al
ready begun. Transactions on the
stock exchange were moderate in
Liquidation in the in
dustrials continued. especially in
munition, copper and auto shares.
which have had an exaggerated rise
and subsequent fall Railroad shares
held their own we'll justifying the