The Detroit times., 1916-11-13
Multiplying Ent G n :
prises Respond to
Growing Demand
MORE MARKETS
OPENED TO L. 5.
Prices Moving Up, But
High Market Not
Reached

Henry Clews in bis New ors
financial letter says
Many stocks again touched high
records, chiefly the indus.rlals. as a
result or big earnings or upon the
early assumptions OF Republican
success. The reaction started py
election lsappolntment- quickly cz-
hausted itself and prices again be-
gan a new upward movement I1r
impression gains strength that the
high point u the market as a whole
has not yet been reached. ~ other
words. war imitation Is energeucaly
nj work and no permanent setback
can be expected until this influence
has spent its force--a contingency
admittedly not yet ~ sight
prices of commodities seem but
fressed upon one or two incoutro-
vertihle facts an aDnorna! de-
mand, coupled with general scarcity
Wheat. cotton. corn, meats. leather
wool. rubber. steel, copper. in fact
practically all important comDOGl
tfes have risen sharply since the
war. Naturally the cost os living
has increased. and in many cases.
tho not all wages have risen thus
adding 20 the cost of production
There is apparently but one check
10 this upward movement, and that
is exhaustion of buying power. there
being no immediate prospect o. the
war ending and no uneaS.ness re-
garding the credit situation. Already
economy and substitution are being
practiced AZ home and In the shop
hut this. while symptomaiic, IS not
thus far important as 20 its results.
"American industry continues run
ming at top speed as a direct and ir-
direct result of war influences The
demand for munitions is expected 20
continue, AZ least HhtA spring. Il
not longer: our mills are endeavoT-
ing to Bll the voids IN foreign mar.
kets. our shipysrds are turning
out vessels al speed and profits new
er before experienced while the
country Itself is now feeling the
powerful stimulus OF the big profits
Of the last two years. especially
1915.
There Is one vital thing that is
not scarce, and that is money. the
circulation per capita being the
largest In our history Credit ~
abundant. so plentiful In fact that
bankers are already taking steps 70
avert the dangers 81 imitation. IN
ciuding the discouragement ~ gold
imports Easier conditions are also
reported abroad Money is plentiful
in London The great banks %
England and France are increasing
their gold holdings and rumor has Il
that the Bank OF England rate pili
before long be reduced from six per
cent. II IS quite evident that heiig
~rents viii be compelled 10 come
again 10 New YORK for financial AID
all OF which tends 20 permanently
increase the financial prestige %
the United States So long as these
influences remain az work. the in
fstion movement must continue.
and when war ceases there viii De
compensation 20 Offset their disap-
pearance.
"A grea. industrial awakening Is
already on foot in this country. new
markets having been opened 20 us
while new Industries are being cre.
ated az an unprecedented rate IN.
less all signs mislead. we have a.
ready entered new era OF indus
trial progress IN which the rewards
Of industry will be more equitab'v
distributed than In the past.
This week ne government cror
report estimated the corn Yield ~
2.sl3 100000 bushels. compared with
3,n54.oo000o bushels a year ago. or
wheat the yield "a estimated al only
GOT .000 900 bushels. against l.O1f.-
100000 bushels last year These fR
ures explain tho high cost q, food
without regard 10 the war. which
has further lessened the worlds SUD
ply by reduced yields and increased
wastage The high prices ~ cotton
meats, leather wool. copper. coal
and other necessities Is almost on
tirely question of supply"