South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-01-21

! comparing Win Sls0c o,VVutVVU 1T
1915. and with a maximum of S642.-
100000 before the war AS a fur
ther result. import of more than
! $500. 100000 gold in the first II
Z months of 1916, as against $451,-
100000 in 1915. and high level be
fore the war, Of $15S, 100000 in
1898.
(7) Unprecedented business pros
perity in the United States through
| out the year. with bank checks
/ drawn in the whole United States in
the first II months of 1915. greater
in amount by 80 IL percent than
the year before and by ~ S-s per
cent than the best showing prior 10
/ the war. Increase in American iron
1 production which brought the av-
erage daily output Of October TO a
| figure IL ga percent above the
highest average OF any month in
1915, and p SIS percent above the
/ highest before the war. Railway
| gross earnings which, for the IL
months ending with November. not
] only surpassed all records. but were
1s SIS percent above 1915: net earn
ings also breaking records, though
increasing less rapidly. because of
rising OF labor and supplies
(S.) Along with this heavy bust
ness. rise in prices of commodities
and in wages Of labor, far surpasS-
ing that of 1915; the advance in
stool - q
year TO the highest being $23 a ton.
Of 75 percent; in copper prices u
cents a pound, or SO IA percent: in
tin prices Il is cents. or AS per
cent with standard cotton cloths up
IL cents a yard. or II ID per
cent
Tight Money Returns.
90 Heavy demands on American
bank resources to conduct the years
enormous trade at the greatly in
creased prices; resulting, as early as
September. in a loan account of all
the country's national banks COM
bined, greater by $1.1O3, 600. 600
than a year before. So great a re-
sultant drain on New York bank re-
serves Gas a consequence both Of
this interior activity and of the
fact that eastern money markets
raised the loans on which the bel
ligerent governments drew TO pay
the inland munitions manufactur-
ers) that cash in the New York
bank vaults. despite the large gold
importatiOns actually decreased
$146, 100000 between the end of
| January and the beginning of No
vember; the surplus falling from
! $3.50. 100000 in January to $53,5O0,-
/ 600 in July. and then, after recov-
ering to $127,OO0,OOO again in Au-
! gust, dropping to S41,OO0,OOO on
Dec. 2, when il compared with
! $179, 100000 of year before. AS a
result of this relatively weakened
bank position, rise in rates for de-
mand loans on Wall st. to six per-
! cent in July, the highest since No
vember, 1914, and on Dec. to Is
percent. the highest rate since No
vember. 1912; this happening des-
pite the fact that the New York
! federal reserve bank, with 1885,
100000 cash reserves, had been ask
ed to rediscount less than $1,000, 900
paper for member banks.
GO.) A stock market which was
heavily liquidated during the early
months Of 1916, because Of fear as
to what would happen in case of
early peace; which engaged in vio-
l L.. -.
autumn, with a long succession of
1000, 0O0-share and 10000
share days (this being based on be-
lief that the war would be long con-
tinued, and that conditions in this
country after peace need not be un-
favora ble). but which broke with
great violence in December on the
federal reserve boards action, the
high money rate, and the German
peace proposals.
A Season of Short Crops.
G1.) Harvests which. for the
first time in this country since the
war began. ran short Of consumers
needs: the 639, 900, OOO-bushel wheat
crop comparing with 1000. 600. 600
bushels in 1915 and with SCI .OOO,-
600 in 1914, and being, in fact the
smallest since 1904 Reduced yield
in other grains. which brought the
total yield Of the five great cereal
crops TO 4.7O3, OOO.0 600 bushels. as
against 5,SS2. 100000 in 1915. with
4,s42, 100000 in 1914, and with g.
$50. 100000 even in 1912. AS a con-
sequence. rise in wheat at Chicago
in November 10 50 per bushel, as
against 90 IL cents June "a; the 50
price not having been touched since
1883. Simultaneous rise Of % cents
a bushel in corn, of 10 cents in oats.
OF s4.45 per barrel in -four. with al
most equivalent rise in meat and
cattle; all this occurring in a season
of partial shortage in the grain
crops Of the rest Of the world A
cotton crop to which $500. 600 more
acres were planted than a year be-
fore. an increase Of II percent. but
whose outturn was cut down by bad
weather 70 a figure only $4,000
bales above the very small crop Of
1915. the estimated yield being the
smallest in six years. AS a result.
rise in the spot price Of cotton at
New York from 11-20 cents a pound
/