South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-01-06
Depression During Previous
Year Resulting From Crisis
in Political, Social and Com
merCiaI Unrest Likely to be
Raised Soon.
Special to The News-Times.

pean atmosphere had been over
charged with intense political, COM
mercial and social unrest, both inter
national and domestic on July 80
the storm broke with a violence and
suddenness totally unexpected. save
by the select few; and for the last five
months it has completely dominated
commercial affairs at home and
abroad. The first effects of the shock
have been safely passed, and the
worlds commerce has finally adjust
ed itself TO a war basis with marvel
Gus rapidity. But the worst effects
of the struggle are by no means over.
and for years TO come the world will
have TO deal with the consequences
of this unprecedented struggle, in
volving the governments of nearly
900, 600, 900 of population and an in
ternational trade Of about $4,000
10000.
Year OF Difficulties.
At home IL has been a year of
steady recession and numerous diff
culties. During the first six months
business interests were harassed by
the Mexican problem and hostile po-
litical activities. The antitrust and
anti-railroad campaigns were partic-
ularly virulent previous to the cleo
tiOns; while the investigation mania,
which had more than anything else
to do with bringing on acute bust
ness depression, was pushed to eX-
tremes. The prolonged unwillingness
of the interstate commerce commits
sion to grant any further concessions
to the railroads also contributed very
materially to impair confidence So
too, did the constant intrusion of the
state a al
ly the trend toward government own
ership, which has rendered private
enterprise particularly timid in those
directions. Toward midsummer
however, a change for the better be-
gan to develop in home affairs The
Mexican problem grew less threaten
ing. Public opinion began to show it's
disapprOval of unnecessary political
antag Onism to legitimate business;
and the crop outlook became exceed
ingly encouraging. But by far the
most important factor in the restora-
ton of confidence was the passage of
the federal reserve banking act. This
was unquestiOnably the browning
event OF the year in Pres't Wilson s
administration, and one on which he
could easily rest content with we'll
doing. The new bill is probably as
near being satisfactory as such a
start.
Outlook Frightening.
Nothing is to be gained from dwell
ing unnecessarily upon depressing
factors. and fortunately there are
many indications of a positively en-
couraging nature, which Ii is better
and wiser TO contemplate. Among
these are good harvest, a new bank
ing system, cessation of political at
lacks on business, q favorable rate de-
clsion. generally sound condition of
business and credit, cheap money.
also growing impression, supported
by proof, that the United States being
the least affected nation by the war
will lead in the recuperation which
must follow. Already there are signs
OF turn in the tide for the better.
the real turn arriving when the for
eign exchange situation cleared I'm
october The worst has certainly
been thoroughly discounted. barring
unexpected developments in war. The
west continues persistently hopeful.
because it has been receiving good
prices for what il produces. The
east is already recovering from dis
couragement; and the south. though
severely hurt by the low prices of
cotton. sees its salvation in q greater
diversity of crops. The worst of the
cotton crisis has been passed. since
money is forthcoming to carry the
surplus, and our foreign trade is rap
idly recovering from the disruption
which followed the opening of hos
Titles.
If we were to balance the favorable
AMI unfavorable conditions affecting
business, we should summarize them
thus:
Favorable. Unfayora hla
Easy money War
Better political out Economic strain
lock
Good harvests Slack trade
Interstate decision Injured confidence
HeaNy exports Foreign liquidation
Favor improvements
The balance between these factors
is largely in favor of improvements.
There is no question but that the year
closes with tendency toward reviv-
ing confidence and increasing activity.
depression is gradually fading. Cheap
money and low prices are powerful
incentives to new enterprise. our
great corporations. particularly the
railroads, have pushed economy to
the point of starvation. They must
soon enter the market as purchasers.
If only TO replace annual wear and
tear In this they will be assisted by
the rate decision which though not
entirely satisfactory, shows a more
considerate spirit that must exert a
favorable influence upon railroad
credit. Quite a number OF our indus
tries are being stimulated by foreign
orders, chiefly for war material. One
OF the most important effects of the
war, so far as the United States is
concerned. will be the new oppor-
tunities il opens To Us in foreign mar
kets. Our manufacturers are already
eagerly alert concerning these posi-
bllities. In South America and Asia
the fields for American enterprise are
enormous. The opportunity is there.
and il should be seized with aviditv.
When peace comes. foreign nations
will be SO fully occupied with recon
struction at home that little attention
VIII be given TO export trade, exceptby
Great Britain. During the last five
months our foreign trade has been
much deranged by war. Our total ex-
ports for the II months of 1914 were
S1.S67, 00O. 900. or S3S3.00O.0OO less
than year ago, cotton being the
largest single item OF loss. Our i'm
uorts for the same Il months were
SI.674. 0O0,0 OO. an increase of $50