South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-05-22

100000. How is this huge i'm
debtedness being adjusted? Credit
and loans have been granted upon
d gigantic scale, while the return of
securities, OF which there has been
no accurate estimate, must also have
been enormous in volume; very large
sums still being in the hands of local
financial institutions as collateral. II
is well known that American rail
roads, whose wants have lately been
put at 10000 900 yearly, have made
unusually small security issues. for
he reason that the ordinary invest
ment demand for railroad issues
seems 10 have been amply satisfied
by foreign offerings. besides which
the h gh rates now commanded by
capital discouraged new applications.
Thus far our merchandise exports
show no symptoms of abating. The
shipments last wec'l from New York
amounted 10 $4,000, 600 and since
the first of January have reached
$906.00O, 600, compared with $496.
600, 900 a year ago. The British
blockade is showing its effects by
shipments TO the central powers. and
also by a large diminution in the
exports TO neutral countries antigu-
Gus 10 the central powers. In
March the exports 10 Holland were
only $4,000. 600, a decrease of 3d.
600. 900 compared with year ago.
and exports 20 Denmark were So
coo. 900, a decrease Of $4,000, coo,
while the exports 10 Sweden were
$4,000. 600, decrease of 10000
600. In this connection it may be
mentioned that the United states is
not the only neutral nation that has
made pig profits out of the war,
japan. Holland. Denmark ard
Sweden having also benefited largely.
The rise i'm securities outside of
munition shares--which are a law
unto themselves-ha been sensibly
checked by foreign sales in this mar
ket and a realization that the pres
ent abnormal activity in business
cannot indefinitely continue. Already
there are signs of a halt in the up
ward movement of commodities.
Bradstreet's index number for May
1 being 11.7iS5. against 11.759S
April /. The May index number
shows rise OF over 10 per cent,
compared with a year ago. and has
been chiefly due to the advance in
metals. chemicals and such materials
as were consumed by the require
ments of war. There are growing
complaints Of the increased costs of
doing business. and not a few enter
prises have been deferred owing TO
the high cost OF construction. The
policy OF increased discrimination on
the part Of bankers and lenders Is
also exerting a restraining influence
upon new business.
The outlook for the stock market
is somewhat confused by numerous
cross currents. Munition shares
were unfavorably influenced by peace
talk. and may be adversely affected
stu further as the time grows near
for ending hostilties. The weak
ness OF this class Of securities. which
! a bsorbed so much speculative atten-
ton, naturally affected the entire
market. The most encouraging fea-
ture lately has been the decided
strength of the railroad shares and
few OF the better class industrials
For reasons that are well known
railroad shares have been thought
10 be more attractive and safer as
investments. especially as their finan-
cial condition has been much i'm
proved by liberal gains IN earnings
besides which public hostility is on
he wans and the possibility % q