South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-07-24
NATIONS STAND
WAR LOAN TEST
More Big Credits Expected to
Be Advanced England
and France.
BY Henry CIews

NEW YORK. July 24-Tne most
influential factor in security markets
at present IS the war financing Of
the allies. a new S100,00o,0O0
French loan has been successfully
launched through a specially organ
lied corporation. and being an at
tractlve investment promises 10 ind
ready distribution. IL Is expected
10 be followed by a huge British
war credit grant; the amount named
being 81 500. 900. 600 and bringing the
British total for the war up 20 over
$4,000. 900. 900 How long Great
Britain will have 10 stand this ter
rife strain no one knows, but her
resources are so vast that the END
is by no means yet In sight. Just
now IL looks as II the war Will end
before any financial crisis can posi-
bly, occur. Germany is also facing
the drain far better than anticipat-
ed: the real test there being de-
ferred until after the war. A por-
ton OF the British loan will most
likely be offered in this country
when issued; and other foreign
lOduS Will pIObdDly iotAoN-
Good UndertOne.
A good undertone exists in the
stock market. based largely upon
excellent home conditions. Trade
Is very active. considering this is
the season Of midsummer quiet; and
bank clearings are still running over
40 per cent ahead of last year, the
gains being we'll distributed through
out the country A satisfactory fea-
ture is the reac mary tendency of
such commOdi as had risen I'm
duly high ov ing war demands
and actual sc ,rcity. These declines
come not so much from cessation OF
demand as from production over
taking consumption. The principals
reactions have been in metals and
chemicals which were unduly infiat-
ed by war Breadstuffs are also
lower. though hides, leather and
fruit are at about top figures. Brad
streets Index figure stood at 1929
July /: a decline of Is per cent
compared with a month ago and
per cent with April / the previous
high point. Crop reports are more
encouraging. Higher temperatures
benefited corn. which
now promises a good crop. Wheat
also improved slightly. but no one
expects a big yield OF wheat this |
year. Cotton reports were more IA /
vorable despite damage from floods /
in the south. Upon the whole the 4
crop outlook is satisfactory, there /
4.
deficiencies. In industrial circles no /
noticeable cessation of action can I
be observed. The steel trade is still /
running at practically top speed. and |
profits Of the big steel corporation /
are reported at the marvellous rate /
OF 80 per cent for the last quarter. !
OF course such abnormal results ]
cannot last. and il is worthy of /
note that this uneXampled pros |
perity has not been made the basis |
Of any speculative orgies as was /
the former custom. So much for |
the better standards of conduct |
which prevail in Wall st. than for
merly Railroad earnings abund- |
antly prove trade activity. June re- /
ports indicated an increase of 23 /
per cent over last year, and this /
rate promises to continue during /
July. While a portion OF this in /
crease is attributable TO better rates. /
the larger volume of traffic is tho i
main and most welcome factor. The |
question Of a big railroad strike /
must soon be decided, as the men 1
are now voting upon the question I
of giving their leaders the right 10 /
order a strike 10 enforce their de- /
mands. The seriousness of the sit /
uatiOn is so great that every effort |
will be made 10 avert so grave a /
public Inconvenience. Pres't Wnso /
has been asked 90 interfere. and /
hope remains that sober second !
thought on both sides will prevent |
"a rupture Nevertheless this issue /
will be an important factor in the /