South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-08-07

eign loans? Though all of these
problems are being faced in a con-
fident spirit, it is impossible to feel
sure Of what will happen. Home af-
fairs are not without their perplexi-
ties. The crop outlook is no. en-
couraging, both wheat and cotton
having suffered rather serious deter
ioration, though there will be suf-
ficient Of both to secure good prices
and prevent famine The labor sit
uation is particularly threatening;
prosperity seeming TO have turned
the heads of a certain type of lead
ers and making them think that
the rights of the public and owners
are entirely subservient TO the de-
mands of labor. whether reasonable
or unreasonable. The national politi-
cal campaign fairly opened with Mr.
Hughes address and will soon be-
come more of a factor in estimat-
ing the future. The Mexican problem
is far from a settlement and may
remain SO for months TO come The
money outlook is satisfactory and
time money easy owing to limited
demand and abundant supply Money
in circulation in the United States
now amounts TO over $4,000, 900, 900
or more than $500, 600, 600 in excess
of a year ago. The situation in fact
has changed SO completely that New
York banks are transferring their
balances TO London to secure the
better rates there. Capital applica-
/. aggregated about $4,000, 600, 600,
or nearly double the amount of a
year ago. OF this vast sum nearly
100000 represented foreign
loans OF various descriptions, about
$500, 600, 600 industrial issues, while
railroad issues accounted for another
$500. 100000 In July new charters
of $1,000.0O0 or over in the principal
eastern states aggregated s217. OOO,-
600. compared with ST., 900, 900 a
year ago. and S6S, 900. 900 in 1914. So
much for the very extraordinary de
mands upon our capital market
which cannot be prolonged without
affecting the financial situation on
this side. Evidently we are threaten
ed by congestion in the security mar
ket which may partly explain the
unwillingness of the market TO re-
spond 10 stimulating surface condi-
tons.
Trading Is Slack.
Trade is somewhat less active as
usual at this season. Bank clearings
last week were only 33 per cent
ahead of last year, compared with
recent gains of 4 percent and over.
Railroad earnings are satisfactory,
running % percent more than a year
ago; the attest report of the New
York Central showing an increase Of
S21, 100000 of gross earnings for the
six months ending June. and So
600. 600 in operating expenses being
highly significant Inside selling at
home and war selling abroad. plus
the constant pressure of both new
and old issues, create a perplexing
situation. Were the market governed
by ordinary rules, there would be
greater activity and wider, # not
sensational, fluctuations. AS it is the
situation is stabilized by the conser-
vative spirit of New York bankers
WAiO are uASNO AI d- Ing ullSoAnl pFti d
tons and looking out for American
interests. The British government is
also eXerting a steadying influence,
having potent reasons for aiding the
preservation OF sound conditions
here IN order to facilitate its own
operations. Great Britain not only
wants 10 keep exchange at q con-
venient level, but also TO avoid the
threatened congestion OF our secur-
ity markets and pave the way for a
new bond issue later on. Tho situa-
ton therefore is encouraging IN spite
of perplexities Steel shares are
strengthened by the fact that fur
Their big munition orders are coming
or have come this way. indicating
vigorous prosecution Of the war by
the allies. When the war ends it Is
practically certain that big foreign
orders will be received from abroad
for railroad equipment, industrial
plants and other reconstruction re-