South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-03-10
ReUiew Of the Week
BY Financial Editor.

From "A business standpoint, the
market recently has been one in
name only There has not been a
sufficient volume of business to rep
resent either public sentiment or a
trend. ON several days during the
week il had the appearance of stag
nation. This is all the more signif-
icant. because there were many
matters that ordinarily would have
created cOnsidcra bic enthusiasm
and brought about decidedly higher
prices.
The statements that are now be-
ing published daily showing the fl.
nancial condition of various corpor-
atoms and the operating results OF
the past year are wonderful 10 lock
at and TO study. The reflect a de-
gree Of prosperity that was hardly
anticipated. As an illustration: We
need but cite American Wooden Co
with S64. earned on common stock,
and after charging of everything,
including taxes and depreciation.
leaving $50 per chare available for
the common stock. The Republic
Iron & Steel Co, showing well above
$50 per share on the common STOCK.
/ The General Motors showing S34 on
the common stock. The list might
be heightened materially. With all
of this, however, buying did not de
| velop. and the question naturally
arises.-if a market will not respond
/ TO influences of this kind, there must
/ be something inherently wrong The
! causes may be twOfold,-frst and
/ foremost, development in Europe
/ Affairs there. so far as our interests
I are concerned, have been going
/ from bad 10 worse. Germany has
overrun the east. and is today alb
solute master OF al! Of Europe, with
the exception of the western por-
I tions in the possession of the allies
| This does not make for confidence
! here.
The other cause is probably T.
nancial. Though there has been a
tremendous increase in our money,
! banking resources greater than
ever: circulating medium increased
! by over a billion dollars during the
/ past l. months. nevertheless. rates
are high and loanable funds scarce.
The fact is that the government is
monopolizing all Of cur resources
The entire credit Of the nation is
needed for the successful prosecu-
tion OF the war. therefore. investors
must step aside.
A very favorable appointment
was that - Mr. Baruch as chairman
Of the war industries board.
The final agreement of the house
and senate conference committee on
the details Of the railroad bill will
be Of material assistance and soon
esta blish the railroads on a basis,
where progress may be looked for.
The statements Of production by
/ copper companies were not uniform.
/ The Anaconda produced during
/ February. $4,000 pounds less than
! i'm January.-wEile Inspiration
! showed an increase Of 1900, 900
! pounds This good showing is said
TO be due TO the fact that 16 OF the
20 units now working and i'm opera
ton are at so percent Of capacity.
! though il is said that the officials
OF both OF the above mentioned
\ companies are doing all in their
power to increase production.
The one trouble with copper pro-
! duction. and which may also be ap-
] piled to steel and other important
/ commodities. is the price. Cos's
T have been rising. and this should be
! followed by a just and reasonable
! revision of prices by the govern
I ment. This viii do more 10 stimu-
late production than any argumen.
I that may be presented
I leading Trade Journal said on
I this subject chat at n recent New
/ y ork conference, iron and steel men
! brought out plainly the fact that
I while the steel corporations and
some larger Independents would
probably accept without complaint
continuance OF the present gov
/ eminent prices. the smaller pro
ducers contend strongly Tor higher
prices. based on increased costs. a.
since the first announcement Of gov
eminent prices late i'm Septenbe-
costs have increased from sc 10 $40
per ton"
During the week, there were rum
ors I'm circulation i'm regard 10 the
! payment of dividends on Il. Paul
railroad. which caused some
! momentary activity. but there has
/ been no conformation OF il since. T.
was also said that the Baldwin Lo-
I connective company intended 20 en-
ter the market for some financing.
I but this was emphatically denied
| by the president OF the company.
who stated that there was no reason
% issue notes or do other financing.