| OCR Text |
Show ISTOCK MARKET ACTIVE; BUSINESS LOOKING UP By VV. S. COUSINS, Editor The American Banker. . NEW YORK. Oct. 25. When, with a long and strong boost, the fourth Liberty loan was finally completed financial leader in this, as well as every, part of the country did not give themselves up to rejoicing and celebration of that event, but began at once to lay their plaJis lor the fifth campaign. Compared to the long season of warfare endured by the people of allied nations across the water. Americans hae thus far received a big "run for their money." and the results of their efforts have been seen in the transportation of two million fighting men to France. In the holding up of the German advance on Paris at Chateau Thierry and the probable winning of the war In March. In the flattening out of, the St. Mihlel salient and the adv.Tni o on Melz. In the capture of the Argonne for- not occurred in considerably more than a year. The easement of Scandinavian rates carried them to a point within a short distance of their normal quotations, and In other directions the exchange quotations quo-tations moved in favor of thla country. As reflective of the opinion toward war events In neutral countries, ft is worth noting that the quotation for German exchange In Switzerland rose from "3 to nearly 7S francs to the 100 marks, with a strengthening tendency for German Ger-man rates seen on other markets. American banjers have nlso been successful suc-cessful In negotiating for credits in Spain and Holland. It is significant that with Germany on the triumphant march through French and Belgian territory terri-tory the neutral nations were solicitous of their relation to the victorious nation, na-tion, and feared to piace themselves liable lia-ble to accusation of a breach of neutrality neutral-ity With the scales of fortune so com- pletelv reversed, they can now afford to overrule their conscientious Bcruples on these technical points. Spanish C redits. For a year or more representatives of various allied countries made vain attempts at-tempts to negotiate a series of rredlts with Spanish bankers. In order to sta-bOkH sta-bOkH excnanite rates on that country. America suffered in the discount on American dollars mostly by reason of the heavy balances against England, her ajb Id the war. The amount of the initial Spanish credit Is 7S.000.0O0 pesetas, or 115.000.-noj 115.000.-noj under normal eschanice. which can be increased to a mnxtium of $50,000,000. RefunduiK Is to b in pesetas or In gold coin or bars on the basin of 39.032 "gramos' of fine gold for every hundred pesetas. A six months' renewal will be permitted. The fatt that important European neutrals are willing- to concede loans to the allies is a sure Indication of their belief in the speedy and complete overthrow over-throw of the fierman military machine ests and the expulsion of the Germans from half of Belgium and from the rich districts of northern France, in the aur-render aur-render of Bulgaria and. finally, the peace overtures on our own terms of Austria and Germany. Germans Wonderinp;. Now the Germans are wondering why and how America was brought into the war. and who Is responsible for the bad management which brought on such a catastrophe. The first three loans helped to develop America's military strength, the fourth witnessed the glorious results of the practical application of these military mili-tary resources to the place where they were most needed. The fourth loan sees Germany on the way lo military and financial ruin, and It will not- be surprising sur-prising If the fifth loan furnishes our armies with the "sinews'" sufficient to complete the taslr. Perhaps the most Important effect of the ending of the campaign wilt he a more comfortable position of the domestic domes-tic money market, and this means not only a broader stock market, but better bet-ter financial accommodation for merchants, mer-chants, manufacturers and general Industry In-dustry While- the war loan has been stfhscrlbed. It has vet to be paid fnr by the public outside of the banking Institutions. Action of r.iinks. Prior lo the closing of the subscrlp-rlons, subscrlp-rlons, howaver. th banks had taken four and a half billion dollars In treasury treas-ury certificates In antidilution of the loan. Thus the banks will In the near Tuture have paid to liiem almost five billion dollars advanced by them to the. government, and. its a matter of fact, they will he custodians of the DsUajlca of the loan until drawn by the government govern-ment In payment for war expenses. The hank, will then muke readjustments readjust-ments between themselves mid thcir depositors, de-positors, taking full advantage of their privilege of redlacountlng with the federal fed-eral reserve batiks notes based on government gov-ernment bonds, but holding same down to a minimum. Hence It will he n few-weeks few-weeks before the treuaury resumes Its policy of borrowing on short-time certificates certifi-cates In anticipation of the next loan. The 10 per cent called for with applications appli-cations have reuulred the gccumuUtlot) of lltnn.ono.nno during the three weeks of the campaign: 20 per cent will be due on November 21. similar amounts on lie, ember 111 and January IB. while n final payment of :in per cent. Or 11,100,-, I ooo.flon. will he due on January 30. Miinv payments have already been made In full The payments overlap the usual new year dividend and Interest disbursements, disburse-ments, by which they will be facilitated. Domeatic Finance. One mailer to which special attention must now be given Is thai of Hie resumption resump-tion of new financing for domestic enterprise! enter-prise! which has been held up arbitrarily during the progress of Ihe campaign. The long de'avs which have been made Imperative In ninny of these financing, projects' have made prompt action at this time all Ihe more compulsory. Aa a rule, bankers are or Ihe opinion thai HO difficulty will he encountered In making mak-ing provisions for all such necessities : and, while there Is small possibility of anv' great easing In money rates, the supply of funds will be grealer. The re. in v si t ion which the country experienced ul the close of the Ihrro, previous loan will now he tffSOtlVe, the redenosll of bond pnvmoiils In the banks OODtrtbUt' Ing lo thl general Improvement In Ihe money market. Buoyant si nek Market, Whether lUItlfled from the course of Present events or not, the slock market has been enjoying a Ijoom which Illlls far has QOl seemed lo discriminate nl Ivveen whal may h inwldeted war slocks and pein e slocks. No one In Wall streel believes Hint Ihe IV a r can be coll, -111, led this year, bul Wall Ureal Usually ills oounti future evanti by from four to eight monihl, and.1 as soon as the speculative specu-lative dhilrlcl forms II" conclusions aa In Ihe probable trend of future events. II concerns Itself very llllle as to thn exact time In which these Ihllik-s come lo pass. Thus, for Wall Itreel Ihe war Is over end the rwtllts already tabulated, all thai remains being to apply OUr financial ami military resource! to tha iimii for the big "mopplni up" program whloh mnsi loonir or later o Inamurated, All classes and OOndltlOhl of slocks me favored! 'he iniiusiiiaii for their Incieaslng earning capacity, the oil stocks for I heir llnni eceilcliteil oil pro ijuptlon, nn'i Mi" rftlin for tho Improvinp pUtlOOh Whinh Kiivi'i'innriil optVfttToii hai modo powilWo. Thfl mllroodi "f rountry will for twenty ono monthi iftor (ho war continuo iinnor Iho dirtol con itvit nf tho iiovflpnniont, durluff whloh period M oxpctod th1 innnv impOT1 in nt addition i nd linprovomontri will bo mil -in hi i in ir oxpimiHim ooulpmonto Thoy outfit if bottor dlvld i pro dution i' Unw Itpoi ", Tho pooh Ion of tho rVmorlcein UollAr in foroltfn n tut nl markoti Imi boon iMPumitfililv Imprnvpil In POOOnl WOOko, Hwln OKohantfo In t) Imm mftrkol oold ii In n lOYOl Wll'-ir lh" ilnlliu 1 'lit mora tntffl I frvtoii lOHlithlni WntOll l'l |
