The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1917-02-13
ALL EYES ON
STOCK MARKET
by Henry CIelV0
by Henry CIervS)

in the security markets there is a strong
bear party which. encouraged by "a sue
eessful campaign OF several weeks IS
disposed to push its advantages TO the
utmost when peace negotiations began
the market was heavily oNerbought. 1t
is now in equal danger OF becoming
oversold, in which case sharp rally
would follow any favorable news, or
when the unfavorable has been amply
discounted
Aside from the war. home conditions
are generally Favorable Trade is in
sound condition. but much hesitancy pre-
walls owing to the great uncertainties
of our international relations. The steel
industry is fully occupied and seems
assured Of abundant orders. peace or
war. yet hesitation Is marked in many
directions. Not a few concerns have Of
fered their establishments to the gov
eminent in case of war. and the mobil-
ization Of industry 10 a war basis would
be effected with much less arrangement
than two or three years ago Our tex
tile Industries are equally perplexed as
to the future Large orders for wooden
goods are expected for the army but
manufacturers are at loss as to the
securing of wool supplies which are
scant and dear. In event Of war. the
government will probably commander
all American grown wool Transporta-
tion IS another serious problem-the de-
rangement of export trade. freight en-
bargoes and scarcity Of cars adding to
the troubles of shippers and manu-
facturers. Whether the government
would undertake control of the railroads
in case of war is a matter Of conjecture
As yet there is no apparent need of such
step. It may be taken for granted
however. that in order to facilitate
mobilization. our government viii take
on many Of the activities in production
and distribution which were forced upon
European governments as war meas
ures. What Whashingto viii do with
the several important measures on rail-
roads. revenue, etc, now before it, but
oversnadowed by the greater interna-
tional problem, remains TO be seen. This
session expires March 4th. and it is
hoped tho country viii be spared an
extra session. Manufacturers and dis
trihutors alike are perplexed by many
grave problems. From the economic
point Of view, tho high cost and scarcity
of raw materials is becoming an in
creasingIy serious matter. The same is
true as TO labor. Meanwhile, profits in
many cases are already seriously threat
ened by inability TO check growing ex-
penses and an increasing unwillingness
Of consumers TO pay current high prices.
which are already beginning TO visibly
check consumption.
The money market is well supplied
with loanable funds and rates are easy.
A government loan to the extent Of
100000, 900 or more is talked about in
case Of war, but these figures. which
are not official create no uneasiness
among bankers. who are confident that
any necessary loan would be easily and
promptly taken. Our banks are in an
exceedingly strong position. as evidenced
by the low rates Of discounts prevail
ing in all parts Of the country The Fed
eral Reserve system is working admir-
ably and has strengthened immensely
our banking resources. Recent liquida-
ton has added to the supply Of loan
able funds. excepting. Of course the
shipments of gold to South America
and elsewhere. Even if we escape war
and issue no domestic loan whatever.
Europe must continue heavy borrower
in this market for long time TO come.
simply because this is the most avail
able banking reservoir in the world.
Such demands win make themselves
felt more conspicuously when peace ar
rives, as uuquestionably The Industrial
facilities OF this country will be freely
called upon to aid in Europe's recon
struction. As an illustration Of how
rapidly New York is growing as a
financial center bank cIearings recently
touched the high record of s1.21SS0o0. 600.
of Hxr g,V,es
connected with the $3.50 600 GOO British
loan. but on three other occasions bank
/ clearings at New York passed Che bill
lion-dollar mark.
HENRY CLEWS