South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-10-02

unless the New York stock ex-
change price level becomes irresti-
bly, attractive the holdings Of
American securities in other neu-
trail countries will not improbably
be fully maintained. II indeed not
substantially increased. in the near
future since il would be difficult
for capitalists In those countries
20 find more attractive investments
than American railroad securities.
In addition We must not forget the
very large volume Of mobihzed
American securities controlled By
the British treasury under the de-
post or loan part Of it's mob!iza-
ton scheme II will be recalled
that 100000. 900 Of such securities
were deposited as part Of the 5000
600. 600 collateral for the $3.50. 1000
900 British loan so recently ar
ranged with American bankers at
this center Future loans Of a sim
ilar character are understood 70 be
in contemplation. 20 be arranged
when needed. II is not unreason-
able 10 assume that the collateral
must be quite as attractive as in
the transactions yet to come. The
British chancellor must be prepared
20 continue 20 include a substantial
part Of American securities as the
security for ensuing loans. Mean
while. as the British treasury has
merely borrowed. not purchased,
II IL ion 10
slight probability Of their sale. In
stead they are 10 be tied up until
after the conclusion Of the war.
when they will be returned 10 their
present owners.
Rails Need Capital.
IF il may be accepted as conclu-
sive that foreign selling is culmi-
mating an important point in rail-
road finance has been reached. Our
great transportation lines are sew
erely in need of new capital for inn
prOVements. for extensions and ade-
Cuate equipment in order TO place
themselves in proper position to
conduct their business as common
carriers. There has been no serious
attempt by them 10 appeal 20 the
capital market during the period Of
European liquidation. Any action of
this kind would obviously have
been unWise since il would have
meant competition with the cream
of railroad investments, such as
were SO distinctly the feature Of
foreign holdings. AS matt IS now
stand. however. if this competition
for the funds Of investors is end
ing. railroad managers will find in
ducement TO take advantage of the
phenOmenaHy favorable revenue
statements that are being presented
i'm the annual as well as the
monthly traffic and financial state
ments. Recent annual reports have
shown. for instance. such magni-
fcent results as about II per cent
earned on the common stock of the
Southern Pacific, the Atchison and
the Reading roads. These figures
may be accepted as representative
OF the railroad business Of the coun-
try.
No Peace I'm Sight.
The probability of the continu-
ance of the war into 1917 removes
as an immediate factor OF the gen.
eral market the after-war condi-
tons which many thoughtful per-
sons are awaiting with apprehen-
sion. A contract for nearly 500
600. 600 pounds OF copper. which
has recently been arranged with
American producers for delivery
abroad during the first six months
Of 1917 does not tend TO encourage
the view that an early peace is be-
ing expected in official circles
abroad. It. too. seems fair TO as
sumo that other purchases of war
munitions and other war material
will continue upon an equally lib
eral scale. They will serve TO pre-
serve the same uneXampled indus
trial and export activity that has
heretofore resulted primarily from
this source. We are now expert
encing not alone a demand from
foreign countries for both war and
peace supplies. but We have added TO
that an almost equal volume Of
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