The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-06-13
TRADE CONFIDENCE
CONTINUES TO GROW
PROSPERITY FOR FARMER
STRONG BASIS FOR IT.
Crops Expected to Yield More
Than Ever Before-Con-
tinued Rise in Stocks.

III Increasing bank clearinRs, compare
tive ease OF money. readiness OF bank
ers TO make loans for all normal com
merclal and industrial needs. rapidly
increasing organization OF new corpo-
| rations and issues of new securities OF
existing corporations and a broaden
ing mercantile business throughout
the country. all reflect the growing
| spirit OF confidence In continued and
| profitable growth OF trade and industry
in the United States, says the Kansas
City Star.
Great Crops In Prospect.
Harvesting an extraordinary winter
wheat crop--far exceeding any pre-"
vious record--has begun In the south
ern portion of the wheat producing area
and will proceed rapidly this month.
! The June government crop report to-
morrow is expected to show a forecast
exceeding even the large estimate OF
a month ago, despite the occasional
complaints OF rust and damage from
excessive rains. There Is no present
reason to expect less than 1850 million
bushels OF wheat in the United States
this year. nearly double the home re-
quirements, affording surplus nearly
three times the average exports OF the
past FIVE years. Marketed at a guar
anteed price that will net the produce
be by far the largest money producer
ever raised and II will mean an immense
purchasing power for the farmers.
Other crop conditions are generally
promising. Excessive rains In some
sections have caused anxiety, but the
big crop years are always the years
OF abundant moisture. and there Is ev-
cry present reason to believe this year
will exceed in quantity as well as In
value, that OF any previous year. That.
in itself. constitutes a sound basis for
strong confidence in the business out
look.
Stocks Continue 70 Rise.
The confident speculation for a rise
In stocks continued last week in the
New York market. There was one day
OF reaction--the most important that
has occurred In many months-and
many prices tumbled precipitousiy--as
IL the long advance might have culmi-
mated. but the reaction lasted only one
day and the rise in prices was prompt
ly resumed, giving a strong demonstra-
ton of the buying power In the market.
The most conspicuous advances were
in the motor and oil stocks which have
been rising persistently for weeks past,
though there were large gains in some
OF the other Industrial issues, and the
demand was for such a wide variety
of stocks as to indicate a broad and
rather indiscriminate public interest in
the market.
Stocks OF sugar. tobacco, cotton seed,
linseed, wooden. leather. rubber and
food companies made large advances.
indicating that buyers Of securities ex-
pect prosperous period ahead for
practically all the manufacturing COM
panies supplying the wants of the world.
Iron Output Contracting.
Steel stocks rose to new high levels
for the year, though the specific re-
ports of the industry are not particular
iy encouraging. The Iron Age reports
that seventeen fewer iron furnaces
were in operation June ] than on May
!. There is O confident feeling. how
ever. that orders soen will be going to
the steel mills in sufficient volume to
expand the production.
Anomalies In the Stock Market.
There are many anomalies In the
stock market, United States Steel
shares. for instance, selling for ITO and
paying per cent. dividend. when they
were below par a year ago with a IL
per cent. dividend.
Why do spectators and investors pay
ITO for per cent. stock OF a corpo-
ration that is not doing more than 70
per cent. OF the business 1t was doing
a year ago? The answer Is to be found
In the general optimism OF the country
regarding the outlook for business and
the prospect for maintaining present
high prices for commodities.
Money Is Plentiful.
Call money rates advanced to IL per
cent. on one day last week. the day OF
the violent setback in the stock market, |
but II soon went back to 8 per cent. and
there seems TO be abundant funds to
finance the big speculation In stocks.
Some bankers have expressed the be-
lief that the rise Is going too fast. but
there seems to be no disposition among
bankers to curb the speculation by re-
fusing to lend money to the brokers and
commission houses.
The prompt disposition OF every new
issue OF securities put on the market
indicates a large amount or capital
available for investment.
Bankers are meeting all normal de-
mands for commercial and industrial
loans and showing no inclination toi
curb operations in those lines that are
fundamentally sound.
Gold Imports Resumed.
Resumption of imports OF gold from
England last week was a factor OF
some Importance in reassuring financial
men as to the abundant supply of funds.
About $16,000.000 arrived and 1t is said
that a total of $50. 600, 900 is to come.
II 1t were not for the restrictions inn
posed by most countries. the United
States would be flooded with foreign
gold to settle balances and maintain
stability of exchange rates. Exports OF
merchandise are so greatly in excess OF
IMPORTS that balances due from abroad
are very large. They have been settled
for two years by total of about ten
billion dollars loaned by the United
States government to foreign govern |
ments. What method will be adopted
in the future remains to be seen. as the |
United States loans to the allies must
cease soon unless congress authorizes
their continuance. Bankers who are
working on the nrohlenn havN mt vet