South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-05-15

ego. such evidences OF extraordi-
nary activity could be multiplied in
definitely, and encouraging as they
ray be they unavOidably raise the
question. WREN viii a halt be due
Optimism continues on the flood
tide and there are no signs OF weak
less in the Industrial fabric: albeit
there are certain changes in tenden-
c-es and conditions which should not
escape notice. First. COMMODITY
prices have risen 20 a point that no:
iDlrequently arrests new business.
The index number OF the Lond On
Economist stood at 419O on April
3rd compared with 3.3337 a yea
ago; rise of about % per cent in
values. chiefly in minerals. timber
and beef. rhe rise in American mar
kets was probably not quite so ex-
IRENE as this. but IL has been very
cor siderable and Is now exrrting rs
effect upon credit The great ex-
TensiOn in leaning capacity "f
the banks brought about by large
gold imports. the new banking law
and other circumstances, especially
the war. produced the much ex-
pected imitation. Bankers are now
scrutinizing loans more carefully.
since credits have been greatly eX-
ended and much larger sums are
required 10 finance given amount
+ Of merchandise than formerly With
commodities at such dizzy heights
and exposed 20 a reaction, bankers
are justified in exercising greater
discrimination. Further. the cost
/ or doing business has been tremend-
I OLsly enhanced by the rise in raw
materials and the elevation of
wages. Such developments mean
. that the next L months will not
see a repetition of the bulge in
profits OF the last p months. Again.
I foreign munition orders. which did
much 20 swell both profits and eX-
/ ports. may be repeated. but on a
| decidedly smaller scale with the
prospect Of almost vanishing when
/ peace comes. In many cases new
I enterprises have been deferred un-
/ I'll costs Of building declines Not
I "A few concerns notably i'm the steel
I industry. are sold ahead so COM
pletely as 10 be unable TO take fur
/ Their orders. or at least until the
| outlook for raw materials is more
settled. While the prospect for
/ peace. as said above. is not yet in
/ sight. IL is practically certain that
a cessation of hostilities is not very
/ far distant. when both domestic and
/ foreign trade will be demolished or
readjusted upon "a peace basis. II
/ would be decidedly erroneous TO ex-
I pect TO return 10 the ways and con-
ditions existing before the war. on
the contrary, many problems viii be
wholly new and quite as perpleXing,
/ if not more so. as those now in the
melting pot. New forces. new con-
ditions new ambitions. new poll
cies. new methods. new markets and
new opportunities in endless pro-
/ cessiDn viii bring in a food of fresh
problems, the solution OF which will
require much prudence and time for
adjustment.
in spite of such perpleXities, the
I business outlook for the country as
t
west is practically assured OF an
other year Of prosperity because OF
the high prices for all food and
agricultural products. Labor in
other parts Of the world has been
SO diverted from production 10 de-
struction that This country is prac-
tiCaliy sure of another good export
/ season for raw materials, Darticu-
/ larly grain and cotton. For our
mineral products there is also an
/ unprecedented demand; notably
/ copper petroleum, iron and coal, all
/ o. which are bringing extraOrdi-
/ naryiTy high and profitable prices
/ There is no cessation of the boom
/ Iva the iron trade except for the in
disposition of the steel companies
10 accept further orders for 1917
owing TO the uncertainty of securing
/ raw materials The railroads have
/ been liberal buyers of steel products
/ and in some portions of the country
/ the building trades. though spotty,
/ sFOw much activity. The textile in
/ dLstries are i'm a satisfactory con-
\ dition. although manufacturers have
/ been somewhat embarrassed by ad-
justing themselves TO higher wages
and the loss OF considerable of their
I export trade. The outlook general
f ly. however. for textiles. clothing
and food products is encouraging
/ for the reason that wage advances
I have materially augmented the buy
/ ing power of a considerable pro-
portion of our population.
If we except the munition stocks.
there has lhon NO sucb imitation i'm