South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-09-11
MARKET SHOWING
MUCH RESISTANCE
Adverse News and Threatened
Strike Fail to Have e.
feet on Exchange.
BY Henry Clews.

AhahNtaa fIdlhti SLOWS feuldI hdplt
resisting power against adverse
news. Neither the threatened strike
OF the railroads last week nor the at
tempted tie-up OF transportation in
New York city this week exeraed any
noticeable effect upon the stock Elk
change. The concessions demanded
10y railroad labor created surprising
Is little alarm. probably because of
belief that present trade activity
would largely compensate the rail-
roads for increased OUTLAWS and that
net earnings though diminished
would not seriously suffer. In the
case OF the railroads. il was noted
that the new ARRANGEMENTS for an
eight-hOur law do not go into effect
until January st. that its effect was
10 re studied by the government, and
that If really Injurious 10 the rail-
roads the Interstate Commerce Com
mission might BE induced to grant
them an advance in rates as COM
pensatiOn. Further. the constitution
ality OF the new law is 10 be tested
before the supreme court, whose de-
cision will be watched with wide
spread interest.
General business has slowed down
somewhat bank clearings now run
ming only about 20 per cent ahead Of
last year, as against 40 and so per
cent ahead a few weeks ago. New
ertheless trade has been more ac-
tive than usual at this season: and,
as summer draws 10 a close. all in
dications point TO an active fall
trade. A most important factor in
this connection is the immensely TO-
creased purchasing abilities OF the
masses. resulting from the active
employment of many classes of Ia
Dor at unusually high wages. par
ticularly those engaged in the max
ing or handling of munitions. The
war. the stoppage of emigration and
the great demand for hands in many
plants have created a serious search
~ of labor. the result being that
labor as a class is unprecedentedly
prosperous and inclined to spend
freely and demand still higher
wages. The strikes of today are in
cited by the prosperity and not by
wage reductions; they are part of
the general infiationary movement
world. and which has apparently not
yet run it's full course one of the
results OF the war has been 10 i'm
mensely stimulate the industrial ac-
tivity that would in any event have
developed in this country. though in
"a much less degree. This war slim
illus Will extend for some time yet,
some authorities saying the war will
last for another year at least The
progress of the allies is exceedingly
formidable. but slow: and the resist
ing powers OF the central powers are
doubtless much greater than COM
monty supposed. as the allies prog
Tess. the more desperate the resist
ance they will have to encounter.
The managers Of our industrial
plants are. therefore. calculating up
on a continuance Of this all-powerful
stimulus OF war orders. which in
turn induces continued heavy eX-
ports. huge trade balances gold i'm
ports and further foreign credits.
loans or bond issues For another
year at least. New York promises TO
he the only free money market in
the world. and this means a further
prolOngation Of financial. Industrial
and commercial activity. increased
TO still higher degree 10y an enor-
nous gold supply and the new bank
ing system. both of which have per
mitted a huge but sound expansion
of credit. Beyond question. the war
is impressing its effects upon this
country more and more as time
progresses. and imitation must con-
forced. either through exhaustion or
the close of the war which would
permit Europe 10 recall "A portion
OF its gold. For the time being the
war is quite powerful enough TO Off
set an unsatisfactory harvest. "A dis
tlrbed labor situation a threatening
political campaign and "a flood of
anxieties which concern the man
ayers OF big business There are
quite enough problems awaiting So
luton 20 sober unTeaSoning enthu-
siasm. neVert heless the general
business outlook Is promising. credit
is sound and confidence in the future
is undisturbed
on the stock Exchange there has
been strong outbreak of buIHsh ac-
tivity. based of course upon condi-
tions noted above and backed by
very powerful leadership in a few
issues. notably United states Steel
and Mercantile Marine. II must also
he noted that the public buying OF
stocks has been greatly reinforced
by an influential and new class OF
buyers: namely. those who have
made large profits as result OF the
war The investment buying of this
class has been a factor of consider
able importance. having materially
lessened the supply Of desirable is
sues and beinE "a strong factor in
the present speculative movement.
There was much enthusiasm on the
advance and some shares have risen
10 a point where proht taking on an
increasing scale must be expected
Congress has closed and the next
session viii be a brief one. ending
March 4th. during which no impor-
tant legislation Is likely 20 be at
tempted The presidential cam
paign will undoubtedly be more in
tense than anticipated "a few weeks
ago and a free popular discussion on
many new issues agltating the pub