The Detroit times., 1916-02-12
Foreign Relations Con-
tinue to Be An I'm
pOrtant Factor
HOME TRADE
is IMPROVED
Outlook For Prolonged
Commercial Activ-
ity Excellent

- OuT iOItlEn ItidtthiS eoANAANN ~
be an important factor In the stock
market says Henry Clews. Of New
York. apparently the Lusitania
incident is settled. Highly import
ant concessions have been made to
American demands. and IL is a
source OF satisfact on and relief "a
have SO serious an uncertainty per
manently removed.
''The stock market naturally Hue
tuated from day to day in sympathy
With the changing advices concern
ing diplomatic negotiations. Their
successful consummation. however,
Impaired much better tone gener-
ally. American securities held
abroad have been sold upon every
rood portunity by private holders
ewing to the pressure exerted by
the war. British finances are under
great strain. but show no signs
of weakening. Under the circum.
stances, Of a strong situation here
and q weaker one in Europe, a
spasmodic influx OF American Sc
curities must be anticipated from
time to time. The probability OF
the British government negotiating
~ collaterial loan rather than selling
mobiliSed securities will. o course.
prevent the heasy liquidation which
the other method might have in.
volved. Happily. this country is in
IN excellent condition for taking
hack Its securities II necessary;
state OF affairs which is equal,
fortunate for possible sellers on thu
other side
I'm the war situation there is nc
change. The weary struggle drags
its cruel way without developing
my decisive features. The decided
Improvement in home trade is illus
'tRated by January bank clearings
~ the principal cities. which ag-
efented over $4,000, ,00o, 900, com
psrsd with SIS. .4oo.oco.o00 year
40: an increase Of about 4S per
eont. These increases, which must
- largely credited to a good
harvest, were also partly due to
higher prices and to speculative ac-
tlvity, not to speak OF the stimulus
nRorded by war contracts. A very
striking fact Is that the January
Olearings at New York were more
than one-third of those in the entire
country, compared with less than
ono.haR OF the total year ago.
This shows that New York gained
vastly more in the volume OF busi-
ness than any other city in the Unit
"a States. Outside New York
hank clearings In the entire country
were 25 per cent ahead OF the pre-
vious year. New York alone gained
nearly 20 per cent over las year.
"A further proof Of business I'm
provement, II needed. will be found
IN the railroad situation. Earnings
+ continue TO show very satisfactory
rains. particularly on the larger
trunk lines; and the total earnings
thus far reported for January indi
cate an increase OF about 20 pei
cent over those OF year ago. Whei
al returns are In the ratio viii prob
ably b. still greater.
"The only cloud upon the railroad
horizon is coming labor troubles
Z The excessive demands of employees
seem likely TO be insisted upon, ant
while the roads are In better DO
sition TO make some concessioni
& than for some time past, II woult
appear doubtful that the dispute
\. Will be settled without more or les
diaturbance and possible loss Tbs
iaber outlook In the coal regions Il
also unsettled.
"Our' foreign trade continues II
satisfactory condition. Exports ar
heavy, though slight abatemen
seems to be anticipated by reaso
II the fact that the crop movemen
y on the wane and munition shiI
!, mente for the time being appear [
have reached their zenith. Import
oro also increasing, which tends
(, s,oncouruge a return 10 more normi
3 <Gcnditions in our foreign commerce
ne foreign exchange situation col
\ 0nuos to improve, the return
1merican securities from abroa
- the establishment OF credit
1so a. well as. the influx OF gol
Avlne eRectually removed all veal
oco a this direction.
~looreover. The marketing of vas
amounts Of securities means the dis
plnesment 10 . considerable exten
q uther Investments. On the othe
ont, those in charge Of these nego
1llpns win nndoubt sdly use dis
nn and every effort 10 avoi'
<bance In financial condi
~ " successfully mar
- hon(n. e may b