The Detroit times., 1916-02-21
STILL
GOVERNS
FINANCE
HENRY oLEws.
Struggle AZ End of
1916 Will Have Cost
60 Billions
GERMANY LEADS
THE BORROWERS
Home Trade Is Active
in All Parts of
Country

The war still plays the most i'm
pcrtant part in local and interns
tional finance," says the weekly re-
view by Henry Clevs. the New York
banker. 1t Is esfimated that II
the struggle continues until the end
ot 1916. the total cost to all bel
ligerents will approximate soo.0oo.'
coo 600 They are now spending az
,he rate o. about TWO and a half bill
lions monthly. aad enormous bor-
roWlnES must De expected during
the balance ef the current year.
Thus far Germany has been the
hesyies' borrower Great Britain Is
the heaviest spender, but has paid
a onsiderable amount Of her var
costs out OF current expenses and
has borrow. - less than Germany.
France ~ estimated 70 have oor-
roved about As much as Great Brit
ain. but her expenses are less. Rus
sia seems 10 have borrowed much
less than either. while Austrta-Hun-
gary has been moderate borrower,
much smaller than Turkey. which
has paid more Ihan its proportion
ate cost in men and money.
"All h. belligerents will be heavy
borrowers during the remainder OF
the yea. In Great Britain credit
OF s2.5Ga 100000, the largest on rec
ord. i about to be asked. France
is contemplating a credit of $500.
600 900 Germany and other coun
tries viii also have To make cores
ponding issues a. stated intervals.
Huge as these sums seem. they must
soon be repeated II the war con
tinues, as appears probable. la cost
FOR this year alone Is estimated az
from twenty-five 10 thirty billions.
Some hesitation was produced by
the presidential campaign. which is
nov fairly launched owing 70 our
delicate foreign relations. the situa.
ton is watched with exceptional in
terest. since serious sequences
might follow any misstep OF unto
ward event.
The labor situation Is somewhat
unsettled owing 70 the threateend
crisis with 'he coal miners and rail
road employes There IS reason TO
! hope. hov.ter hat serious dis
turbances w.l be avoided and that
the disputes viii be settled by con
ferences and reasoning between both
sides 4 bitter struggle for the
markets OF the world f. Inevitable.
and economy, hard work, big out
put and low prices viii 5e the rule,
Should this country fud itself upon
a high level OF costs when Europe
resumes business, co7lpe'itjon from
that quarter would b. much more
dificult 70 meet ii peacr found us
laboring under the Disadvantage OF
high costs OF production Peace will
find our output greatly eypanded.
The technical situation of the
market was improved hy 10 late de
cline. which. considering the pres
ert rates OF interest. makes many
good investment stocks look cheap.
| Not a few good railroad shares are
yielding at the present time : TO
( per cent on current quotations. and
many substantial indGs'rlaIs s al :
per cent and over. Or course. the
var stocks yield even more hand.
some return. bui their profits are
only temporary and often exceed
ingly hazardous
The market was rnomentarily az.
fected adversely by the Canadian
proposal to tax war profits. aiso by
fears Of fresh difficulties with Ger
many over the question Of subma,
rnea and armed merchantmen,
which Induced fresh hesitation.
Aside from these hindrances. how
ever and the political situation al.
ready referred TO- market condI.
tions arc generally satisfactory. Pro
fessiOnal OPERATOR have reaDed con.
siderable profits By the late fall,
and unless .prther disturbances oc-
cur. they are likely 20 become more
cautious IN bear operation
Home trade continues active in
all parts OF the country As for the
future OF tho market. essential con.
ditions are sound and encoura ging.
but daily fluctuations are governed
almost entirely BY conditions and
happening which II n impossible
20 foresee"
Aller. Rogers. had ~ No - J0ra
r.. l. -