South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-07-13
REGULATION IS
DANCER ELEMENT
ends to Promote Initiation
When DefIation is Econ
omic Requirement.

Speculative tendencies-the in
vstable aftermath q war-are evil
snt not only in the stock market.
ut IN some business enterprises as
bell They intrude an element Of /
hanger upon the era OF prosperity /
Impending. Expansion is natural 1
nd laudable But purely specula- |
i've ventures. ike speculative up I
bidding OF the market, tend 20 re- !
trict and injure legitimate activity. /
5rhey absorb credit and promote in ]
fasion. which leads eventually 20 I
higher prices and wages and a less /
.abLe condition Of finance with |
hanger OF collapse
TIE federal reserve bank and prt- !
nate bankers have taken steps 10
discourage undue market specula-
HON. and financial writer's warn
against further expansion Of credit
at a time when gradual defation is
essertial. Bank cIearings have
reached unprecedented levels. and
hank deposits increase steadily.
Bhowing that business is transacted
with more currency and a larger
volume or credit than before the
war. and revealing "A condition that
does not spell prosperity so much
as IL suggests imitation
Call Money Erratc.
Call money at New York has
been erratic, oscillating rapidly be
tween five and 20 per cent in the
presence Of speculative demand.
Money has dominated stocks. Con-
striction has beer followed by de-
cline relaxation by advance. The
money market outside New York is
steady. but while there seems TO be
enough for urgent needs like mod
crate extension OF credit 20 Europe.
crop moving. and new enterprise.
an easing tone is not expected. Dur
ing the past month funds sustained
the payment OF income and excess
profit taxes, due the 18th, and the
large. unidyear dividend and inter
est payments. Owing 20 high costs.
business will require a very consid-
cradle amount OF working capital to
operate Victory loan payments
feature the middle of July.
TURNER'S Will Deposit.
On the other hand farmers and
|
ing the harvest. and a banner wheat
crop will inspire confidence. Conf
dence means larger credit. freer
circulation. and maximum available
| ity of-resources. The monetary sur
pius-as always-will find its way
10 New York. where il may or may
not be subject to the call OF specu-
lotors.,
How tremendous will be domestic
needs for capital is Indicated by
June interpretations, which tOtalled
SI2EO, 600. 900. representing 700 new
c.Itcfprises-the high record since
I901-and no less by new Iistings
on the New York stock exchange
during the first half of the year.
which approximated SSOO.OOO.OOO.
BY the year-end. IL is estimated they
will have reached $2,OOO.OOO. 600.
The long -heralded expansion has
begun. and may be expected 10 con-
tinuC with acceleratinE speed
Big Offerings Promised.
a number OF gigantic offerings
are promised, among them $2S0.-
eco. 900 in trust certificates to finance
buying OF railroad equipment A
slOO,000,OOO foreign trade corpora
ton has already beer launched in
the south. and a S40O.OOO.0O0 cor
rc-ation is proposed 10 handle cot
ION in the domestic market Munich
pal and state financing will probably
develop on "a rather large scale. now
the government has finished its big
issues. The summer is always a
poor time for Investment buying
and marked activity will hardly oc-
cur before September, even with
present astounding needs
The pound sterling recently fell
TO SE4S. new low point. and other
European exchange stands at a dis
count relative TO the dollar Bank
ers do not foresee an end 70 the de
cline The program for extending
credit on n vast scale. i'm which
seemingly lies the only certain rem
edy. has not yet reached maturity
and may not take positive shape for
sometime. The depreciation OF eX-
change Will discourage foreign buy
ing OF American wares unless means
are found 10 let the buyer pay in
goods at later date. instead OF
currency now. High rates for call
money have had a very depressing
effect upon the acceptance market.
To Export Much Gold.
Permits for the expectation Of
$500 OOe. 900 in gold have been
granted. but only about $50. 600. coo
actually shipped. The availa bility
or gold for shipment has caused
such readjustment Of exchange
rates that shipments are unneces-
sary Gold imports are much more
likely 10 arouse concern than eN-
ports
United States treasury diSburst
ments show a welcome decline.
probably not touching $500. 100000
for June. Total receipts upon Vic
tor notes to- June % were $685.
eco. 600. Congress is making a com
mendable effort 10 reduce appro-
III iations.