South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-04-03
Steel Is Active

Since the above figures were COM
piled prices have in many instances
risen still higher. No industry has
enjoyed more intense activity and
prosperity than steel. Production of
pig iron has about doubled last
years figures and prices have risen
tc point affording extraordi nary
profits. which will continue until
present contracts are conn leted.
Building is about 20 per cent ahead
OF last year in spite of dear mate
rails. Textiles have been very act
i've, cotton goods often advancing
20 per cent to 80 per cent. Woolens
have scored large advances, and in
some instances linens have risen 100
per cent owing to the EN- barge.
Railroads earnings have been gain
ing at the rate of Il per cent TO 20
per cent for a number of weeks
past. Our foreign trade has been
growing by leaps and bounds. partic-
ularly in exports. such facts as
these can be cited indetinitel, to
prove the abnormal activity and
prosperity OF the United States.
chiefly the result Of the confla gra-
ton abroad, although last year
good harvest has been an important
ributing factor.
Such conditions cannot last. They
will bring their own reaction with
out fail. and ii is only matter Of
time when that reaction begins. The
longer il is postponed and the great
CT our profits out of the misfOrtuneS
OF others. the worse will De the re-
action when IL arrives. Imitation al
ways accompanies war, and in our
case imitation has been materially
aided by our big gold supply and
the new federal reserve law which
greatly facilitated the enormous ex-
pansiOn OF credit. The phenom-
email expansion of loans is highly
suggestive of caution. especially as
the effect Of high prices in retail
distribution is only just beginning to
be felt Much larger sums Of money
Will be required 10 carry retail mer-
chandise stocks, and high prices Will
inevitably tend TO restrict consump-
ton; though this may Ice tempo
rarily offset by labor being generally
we'll employed a. good wages-and
in many Instances at very high
wages The conclusion cannot be
avoided that these conditions are
highly unstable When war ends a
violent readjustment will be inevita-
BILE. old conditions will not be re-
stored. a long period Of uncertainty
viii have TO be squarely laced This
country will then find itself upon
a high cost OF production basis:
wages and commodities will be high
er here than abroad our capacity
for turning out all kinds Of mer-
chandise Will be at high water mark:
Europe will need our help in re-
building, she will be too poor 10 pay
our high prices longer than neces-
sary. the belligerents wiz supply
themselves at home as far as posi- .
BILE and whether we like Il or not.
7 this country with few exceptions
will have 10 endure a period OF dull
ness and reaction when peace ulti-
Uately comes. That result. much
as IL is desired. is not close at hand:
and the best way 10 anticipate this
reaction is 20 take time by the fore
lock and apply the brakes upon the
irrational tendencies connected with
the present upward movement be-
fore they get beyond control. Thus
We may regulate the situation: Sc
cure all reasonable profits. and mod
crate II not avert the IN conse-
quences that would follow an I'M
bridled continuance OF present Ill
balanced activities. Repeated warn
ings have already been issued from
banking circles. and not few OF
our industrial leaders have also
placed themselves on record against