South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-06-12

ments. as well as unpreparedness to
meet foreign competition. In skill
and experience necessary to eX-
port trade. foreign manufacturers
are often our superiors; but in all
these respects we are ready learners
and not likely to let opportunities
go by default. our foreign trade
has a brilliant future; and, nOtwith-
standing the irregularities which
war may bring, war has opened the
door To trade expansion wider than
ever dreamed of before the present
Upheaval began.
Financial Situation Unchanged.
There is nothing in the financial
situation to warrant either pro-
nounced optimism or undue caution.
Favorable conditions appear TO
have been well discounted, and nm
favorable, conditions are difficult To
discover in view OF general financial
strength and wide industrial activ-
ity. War news. except the Russian
victory. exerted little effect. and this
market has abandoned expectation
OF early peace. Cessation of tostil-
tiles would affect a few stocks UNI
favorably. while larger number
would undoubtedly be favorably in
fluenced. Aside from the purely
sentimental sense of relief which
peace would bring. the stoppage of
the waste of capital and the cessa-
ton of foreign selling Of our secu-
rites would certainly be helpful TO
the stock market. This country has
certainly bought back billion of
its own best securities since the war
began. and some estimates are 50
per cent more than that. Had il
not been for this diversion the bulk
OF all this capital would have gone
to the Development Of home indus
tries Thus IL happens the war has
unbeknown to many deferred home
enterprises. and pee e would. If
nothing else interfered, lead TO their
resumption. Business in this coun-
try is still very active. in spite of
the slowing down which has oc-
CURED in some lines. and which was
certainly desirable if unwholesOme
excuses were TO be avoided. The
steel trade seems to have reached
the high point for a period at least
and the same is true of some other
industries The building trade. on
the other hand. shows signs Of re-
covery and would prosper more
RELY If materials were shaded
somewhat from present high prices
Attention this week has been large
Is diverted by the automobile msr-
gers and the attendant speculation,
/ which induced some discrimination
in conservative banking circles. A
temporary advance in call money
also excited some comment and
considering decreased bank reserves
and the big expansion in loans. ex-
pectstions OF a hrmer money mar
ket in the future were justified. As,
however. the furry was largely the
result OF preparations for big
British credit in this market these
I factors were overlooked for the time
being though likely TO reassert
I themselves later on. There are ru-
/ mors also that France. Russia and
even China are seeking loans or
I credits in this market New York 5
/ financial institutions hold large
amounts OF British owned Amer
I lean securities as collateral AGAINST
/ loans. and these are being steadily
distributed whenever the market
/ displays any special strength. This
+ persistent pressure OF marketable
securities effectually prevents any
I big rise III international status; but
/ has not proved an element OF
T weakness because the British gov
eminent is directing the distribution
/ of these securities is prudent enough
T from motives OF self interest not
I 10 spoil OF depress It's own market.