South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-06-05
CAUTION RULES
BUSINESS WORLD
Abnormal Conditions Caused
BY War Are Realized,
Says CIeWS.
BY Henry Clews.
NEW YORK. June .

Business conditions are exception
ally satisfactory i'm many respects.
and much more so than stock mar
ket movements indicate. There is
some disposition 90 hesitate. owing
10 high prices. war and political un-
certainties. also to a closer scrutiny
OF credit. but this tendency has not
thus far become sufficiently pro-
nOunced To induce more than a par
tiaI slowing down OF activity, which.
taking all things into consideration,
was somewhat desirable. The war
created abnormal conditions in Ger
tain directions. and there was serious
danger Of reckless expansion and
speculation unless some form Of re-
straint was imposed. This develop
ed a more cautiOnary spirit among
those who assume the Initiative,
bankers have become more discrim-
mating and merchants are careful
not TO overstock. while manufactur-
ers are protecting themselves against
contingencies with more than Ordin-
airy conservatism. In consequence
there is a widespread optimism
throughout the country mixed with
a strong vein Of cSution. This
healthy balance between these two
forces is one Of the best assurances
OF continued activity. The prosper
fly OF the United States has un-
doubtedly been greatly stimulated
py the war, especially in the east;
but this is only a transitory stimu-
.
own reaction; while far ahead Of il
IN permanent Importance is the bet
ter sort OF prosperity based upon
several years Of big crops. especially
the harvest OF 1915. The American
farmer was never so well-tO-do as
today and west Of the Alleghanies
this is still the vital factor in bus
mess. Notwithstanding the rapid de-
veIopment of industry and trade in
keeping with growth of population.
Bank Clearings Increase.
Proof of these statements is found
in current trade statistics. Bank
clearings last week at leading cities
were SO per cent ahead of last year;
a very large gain. even allowing for
the effect OF high values. Railroad
earnings for April thus far reported
show an increase of over p per
cent. New capital issues in May in
the principal states are estimated
at about S192. 100000, which was
nearly double a year ago. A fea-
ture worth noting is the flood of
municipal bond issues. the total for
the year 1915 being about $500, 600.
600. or the largest total in record.
still another feature is the numerous
new petroleum issues. the total re-
ported in May alOne being $67 900
0OG. The record OF new enterprises
for May shows particular activity,
the total charters of concerns above
one million capital being S2O9. 900, -
600. or 40 per cent above the same
month last year. Dividend and in
terest payments in June are esti-
mated ut S137, 600. 600. or $1,000. o
900 more than last year. This in
crease was largely due TO the divi-
dend on United States Steel. which
paid nothing a year ago. Not
few industrials could have paid
larger dividends, but prudence die
tated a conservation OF financial re-
sources. such IS reduction of debt.
Improvement Of plant and building
mp OF reserves. During the past
year 216 companies reported profits
of S7SO.0O0. 600. or $3.50. 600. 900 more
than year ago: the steel companies
showing an increase of $4,000, 900.
he ammunition companies $50, 900 .
000. the copper concerns $4,000.
600 and petroleum companies $3S. o.
000.O0e. A year ago these companies
earned about i per cent on their