South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-09-16
Notes Of the Financial World

NEW YORK, Sept. 15.-There is
considerable speculation in local
banking circles in regard TO the OBJ
ject of Lord Readings visit to the
United States at the present time.
An interesting suggestion is put for
ward that, perhaps the lord chief
Justices mission has TO do with the
release Of a part of the silver hoard
in the United States treasury for the
use of the allies As this would in
volve a change in our fundamental
currency laws, it is reasonable TO
believe that Lord Readings legal
knowledge would be of service to the
allies in the operation. Against out
standing silver certificates the United
States treasury is holding about
$477, 100000 in silver dollars.
Pessinlism and optimism run in
cycles on Wall st. At times it seems
as though there is a malicious con-
spiracy in the news itself TO agree
with and accentuate the mood of the
financial district, TO make cheerful
ness more cheerful, or gloom more
gloomy. There was something of the
sort today. Wall st. felt better.
Banking interests" according to
rumor, had decided that it was time
TO support the market But the alb
sence of buying in Union Pacific was
interpreted as meaning that banking
support has not entered the market
in any large volume. This stock is
usually chosen by those who sup
port the market. Leading houses
were sellers of steel in large lots.
All the railroad stocks are in far
scanter supply than the recent
forced activity seemed to indicate.
Brokers active in these issues and
specialists in the loan crowd"
agree in the statement that nearly
all the stocks sold on the declines Of
the last week or two are still being
borrowed for delivery This is the
case especially with Pennsylvania,
st. Paul. New Haven and Union Pa
cific Nearly all the railroad stocks
now lend fiat" that is, without the
holder of the stocks who loans them
paving any interest on the cash re-
ceived as security. Delaware and
Hudson continues 10 loan at is pre-
MUM daily, which in the course of
a couple Of months amounts 70 a
substantial charge to the borrower
New Haven, in spite of the frequent
~ heavy trading, is not in any great
er supply, and is still lending fiat, al
though there seemed 10 be good rea-
son TO expect that much Of the old
time holdings would have been
liquidated and afiOat in the market
The same condition prevails in St
Paul. which is in steady demand
and also loans fiat. The remark has
been made that the decline in rail-
road shares have made those stocks
less favored as collateral in loans
but with holders able 10 lend them
without interest charge for the
money equivalent there is no need
for them 10 worry about whether
they maintain their long-esta blished
high reputation as loan collateral OF
not
German and Austrian peace
terms have been submitted TO the
pope and when published these may
| probably create another furry in the
| securities market. But il has beer
! suggested that big interests here
have been acquainted with the Ger
| man peace terms for week OF
! more and that this knowledge Ia.
/ beer used 10 depress the market
I In that event the news may be dis
counted when il becomes generally
\ known.
Things are shaping themselves fol
I the ofering OF the second Libert,
loan. which in all probability vii
! amount 10 S,OO0.OOO,OOO. II a bull
| market is needed as a stimulus To-
| placing this loan all conditions vii
/ favor such market. High-class in
duIrials and rails are selling at low
| prices \ group Of bankers in the
middle west is said TO have impor-
tuned the treasury department 20 Of
! fer IL percent bonds There j.
I no such enthusiasm in the east and