South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-07-16
WAY CLEAR NOW
TO ABSORB MONEY
u. S. Needs Coupled With AL
lies Will Hold Down Re-
serve Funds.
BY Henry C1ews.

NEW YORK, July 16.-Now that
the final installment of the Liberty
loan is out Of the way the monetary
outlook is comparatively clear.
Funds Withdrawn by preparations
for financing this transaction and
the July disbursements are return
ing 10 this center, and the situation
was further relieved by reduction Of
reserves Of federal reserve banks
from is TO 13 percent basis. a move
which at once released about 500
600, 900. With these transactions out
Of the way. the course of the money
market is now fairly clear for the
present Payments for the original
loan will not he completed until the
close Of August, and the allies will
soon be in need of additional funds:
so that with cur own military de-
mands also TO be met the absorption
of funds will be on a heavy scale
as long as the war continues. There
is no question but that these require
ments will be easily satisfied. but
the universal waste and need of cap
ital created by the war may stiffen
the demand, as well as the rates, for
its use. The sale of S55.OOO,OOO New
k city { II percent bonds was
as successful as could be expected
under existing conditions. The price
seemed low compared with previous
sales. and was significant chiefly as
proving the higher rates necessary
to command capital
Peace Outlook Better.
Developments In the war are en-
couraging in Ine direction of peace.
Upon the whole the allies are MAX
ing steady gains; not so much in ter
ritory as in the persistent wearing
down of the military strength of
the central powers, while the allies
strength Is steadily maintained and
even gaining. Success in this war is
not TO be measured so much by ter
ritory won TO havoc wrought. as by
the relative fighting abilities of the
two sides.
There is no question about which
side rs in the ascendency and which
on the decline Signs Of dissension
and even disruption are evident in
Germany's present government
crisis. but these should not be taken
too seriously Although Germany is
tired Of the war and dissatisfied with
its recent conduct. the kaiser's pow
err is by no means broken. It should
be remembered that both Great
Britain and France have had several
government crises and Russia a
great revolution: but none OF these
events had any other result than n
determination 20 carry on the war
with still greater vigor. Il is Prema-
ture. also, 20 suppose that the pres
ent crisis in Germany means an
early end Of the war. Germany is
not vet conquered: and there is no
assurance that her people are yet
ready for the sort OF peace terms
that the allies are bent on debating.
Market FeeIs LeCislations.
The stock market feels the heavy
pressure or government regulation.
which rs extending more and more
into al departmcnts of industry.
Our railroads have felt IL in heavy
restrictions upon earning capoci'y.
and made 10 dlihclit 10 secure fapl-
tai for necessary terminals extern
sions. equipment etc.
Pres't Wilson's remarks on Thurs
.dsv REGARDING price fixing caused
somethine Of disappointment 20
the stock market. In my opinion.
however. his words will ultimately
do good. for the president favors