South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-04-24
.CLEWS DOES NOT
FEAR WAR EFFECTS
FinanCier Believes Clash With
Germany Would Not
Be Long.
BY Henry CIews.


seems TO be crossing the Atlantic and
threatens &c break upon these
shores. Pres't Wilson's note 10 Ger
many is in the nature OF "a polite ul-
timatum. Unless Germany modifi rs
her submarine policy in a degree sat
isfactory 10 the United States. a sev-
erance Of diplomatic relations is in
evitable. We are possibly now ON
the verge Of war with Germany. a
catastrophe that only Germany can
prevent. If war comes which
heaven FORBID. n consequences 70 the
United States cannot be very seri-
Gus. owing TO our geographic posi-
tion we are less exposed TO harm
than any Of the belligerents and are
relatively safe from attack. The
German navy cannot reach our coasts
and our own navy can do little he
yond aiding the allied navies. our
army has vet 10 be created and il
would be months before we had a
So ell trained and equipped force TO
send across the Atlantic our most
vulnerable point would be the rela-
lively small American fleet of mer-
chant ships. which would Of course
be sub iect 10 submarine attacks. A
Zig bond issue would be one OF the
first compartments of war. Busi-
ness relations between Germany and
the United states. small as they are.
would probably be placed under ie-
sal restrictions. If not prohibited II
is not likely, however. that hOstili-
frlr a.
financial markets. War might cause
a sharp temporary setback and
shock; also a general mobilization of
industry which IL would necessitate.
Some OF the industrials would I'M
questionably be affected adversely.
while others. especially steel anG
munition concerns. would benefit
through the placement of munition
and equipment orders Otherwise
domestic trade would not be very
materially affected. The withdraw
al Of any large number Of men from
active employment would induce
some embarrassment owing to the
general scarcity Of labor. and would
further aggravate the present labor
crisis. Foreign trade would be af-
fected but little: commercial inter-
course with Germany being already
suspended. All happenings of this
character are based upon the posi-
billy of war. Yet. war may not
come and, If il does il can scarcely
be OF long duration. while the end
might arrive before we are actually
ready With any Important body Of
I tF0nng il mr. TO
nope regarding the peaceful solu-
ton of the present crisis: and 1t
seems incredible that Germany will
deliberately invite further isolation
and the loss Of her only remaining
Influential friend.
Would Mean More Taxes.
One result Of the war would be
/ that the country would have TO face
an important increase I'm taxation.
The preparedness movement alone
/ viii prove very costly and may re-
I ouire an additional expenditure of
100000. 900 20 100000. 600 a year.
| What acral war would cost cannot
/ he fOretOld but it would certainly
| lie several times the cost Of pre-
/ parednCSs. Various means OF rats-
ITg further taxation are already be-
/ ing discussed. such as an increase
IN the rate Of the income tax. its
extension 10 smaller salaries. an in
crease IN the inheritance tax. and
also a rise I'm the tariff Not much
additional revenue could beObtaine 4
through the latter source. for the
reason that when t.ie tariff reaches
ha rtrplfh itfF-a ernnHrnfv,s
| Inatically ceases TO be revenue PRO
Queer. States and municipalities are
also adding 10 the burdens of the
taxpayer. the general disposition be-
ing 10 tax property wherever feast
BILE. and net infrequently with a flat
vor Of vindictiveness Thus far there
is no wide pUblic opposition 10 in
creased taxes. simply because the
average man is ignorant Of the fact
That all taxes have a tendency 20 dis
tribute themselves and i'm time are
ultimately passed on and paid by
the consumer who blissfunv sleep,
in the de'Jsion that his more pros
Porous neighoor pays the tax. Tax.
alton is one OF the most pressinl
problems OF the day. and will soor
become more SO. especially abroad
Labor Crisis Disturbing.
One OF the most disturbing rea
lures OF the present situation is tn,
labor crisis which is really a sec
quence OF the war or the intense i'm
fGustriel activity which Il has beer
the means o. promoting IT, spots
Wages i'm many industries have al
ready risen. and in some instance
stiU further advances are being de
manded following those recently
given. occasionally the rise has bee
IS much As 20 per cent since the firs
of January. but this is exceptions
and largely I'm the nature OF bonuses
the majority of advances having bee
per cent 10 10 per cent. This 3
the season when human unrest /
Usually az It's heisht. the stimulus q
. spring and the outlook for plenty o
work after the slack OF winter heir
/ universal incentives 20 labor. TIL
rise in commodity prices and the in
flation Of profits are also factors q
the movement. It is not withou
significance that many great move
mtnts begin m April. history show
ing that several OF the great vars he