South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-06-15

nificant reactions has been moving
steadily upward at a rapid rate.
Warnings and words of caution
by conservative brokerage and bank
ing houses have been thrown to the
winds Judging by past figures,
brokers' loans are now large but are
not excessive, and it is significant
that comparisons with old standards
must be accepted with notifications.
Considering the large prospective
demands upon the money market,
many bankers have been apprehen-
sive as TO the rapid growth OF brok-
ers' loans Noted bankers have
warned against too free a supply Of
money for speculation and urse cut
ting down the war time imitation as
rapidly as possible. The federal re-
serve board has also issued a SINH
lar warning
Excepting for a few short lived
spurts, money rates have remained
comparatively easy and material
advance is 10 be looked for until the
fall. One of the principal reasons
for the easy tendency in money rates
is that the federal reserve banks
cannot very well raise the discount
rate is II has virtually assured low
rates TO aid the sale of government
securities However, the rapid. very
short-lived advances from time to
time are symptoms that the specu-
lative community cannot look for
too much liberal accommodation
from the banks. Until the move
ment OF crops and the resumption of
building starts any substantial rise
in money rates will bring funds here
from the interior, but when these
developments come 10 pass the funds
of such banks Will no longer be
available
Europe Needs FUNDS.
The financing OF Europe's pur-
chases and reconstruction. continue
ton Of the Improvement OF business
will also call for large funds and
last but not least the requirements
of the treasury are not at an end
The stock market community should
therefore begin 70 give thought 20
the money situation for money rates
may Vet terminate the present bull
market.
Aside from the money situation
thoughtful persons should also turn
their attention TO the fact that the
market has been discounting the
coming prosperity Unfortunately
in many cases understanding This
is especially true Of many OF the
speCialties II is now time 10 con-
slider taking profits of issues that
have advanced rapidly and 20 shift
into good preferred stocks and
bonds The above reasoning does
not pertain 10 good earning railroad
stocks which have advanced much
less than the industrials Investors
can now accumulate these for a long
pull with little fear
Electric Railway Earnings.
Another class OF stocks that has
advanced very little IN the recent
bun market is the public utilities
They have generally suffered badly
in tho past few years but among
them the electric railways have been
the black sheep" The prices OF
stocks which FOR some years have
been widely regarded as excellent in
vestments have declined 10 receiver
ship levels and in many cases roads
operating in remarkable territory
have been forced into insolvency.
The graph herewith presents the
courses OF electric railway gross and
net earnings by years since 1914 Il
shows clearly why street railway
stoc<I have moved downward. Gross
earnings have moved steady up
ward. the total in 1919 being more
than twice that in 1904. Net earn
.ngs also advanced from 1904 &c
Is12. inclusive though not SO re-