South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-05-29
REACTION SETS IN
IN ALL BUSINESS
Expected Slowing Down in
Various Directions Be-
gins, Says CIewS.
BY Henry CIcws.

NEW YORK, May %. 90 In Var1-
Gus directions there are symptoms
Of slowing down in business. The
most significant Incentive to eau
ticn has been the late rise in com
modities and wages. which has so
Increased the cost OF doing business
as 70 impose a widespread check
upon new enterprise. In brief the
rise seems 20 have been Overdone
for the time being at least. and re-
dictionary tendencies are already at
work. This is noticeable even IN
the iron trade. which. through hold
ing orders extending into 1917. finds
new demands less urgent and prices
fu some instances decidedly softer
when compared with conditions "a
month ago New munitions orders
are OF course coming less freely.
ard high costs are impeding new
construction work; while the rail-
roads are combining their OUTLAWS TO
necessary eplenishment In no d.
rection is there any marked de
vslcpment OF new railroad construc-
ticn: a fact which is somewhat re-
raarkabIe IN view Of the much i'm
proved state OF affairs in the rail-
road world In the drug and chem
ical trade there is also a decided re-
action This large, but often for
gotten. industry protited much by
the war; the demand for explosives
and medical supplies causing prices
for many articles 20 soar several
hundred per cent. Now that the
reaction is one. precipitous declines
have occurred, causing more or less
unsettlement ia the entire industry.
II. the dry goods and grocery trades
there is also a slackening Of de-
naand. though no general weakness
OK prices and no general unsettle-
msnt In these lines OF trade there
* a spirit of confidence and values
are we'll maintained.
Crop Outlook Bad.
Outside of war influences the crop
situation is the most unsatisfactory
feature. No serious damage is re-
ported in any section. but the spring
has been cold and wet. consequent
" most Of the cereal crops are
backward and less promising than
q year ago ON the other hand
all fruit crops are far above the
average in condition; peaches, which
promise "A poor yield being the only
exception Cotton is about two
weeks backward, but condition is
good and acreage. according to the
National Ginners' association esti-
n ate. is nearly Is per cent larger
fa F-rrN
DAYS will compensate for all present
drawbacks Bank clesrings. though
still running over 40 per cent ahead
of last year are not showing such
big gains as in the first three or
four months az the current year.
Railroad earnings show excellent re-
suits. gross results reported in April
thus far being more than % per
cent ahead of last year. April net
returns are also very satisfactory If
the latest reports of Union Pacific
and Atcbison are any criterion.
traffic on some Of the western lines
has been remarkably heavy. which
doubtless viii he a factor favora BILE
o. an easier adjustment Of the rail-
road labor problem. The net earn
ings OF American railroads for the
line months ended March Il were
SSg9. 100000. compared with $780,
600. 600 the same time last year. an
increase OF nearly 500, 600. 600.
Prosperity such as this. if sustained
should mean not only better wages
To railroad labor but better returns
10 stockholders
The noticeable public hostility TO
railroads is also disappearing. ana
these favorable Developments would
undoubtedly have been reflected in
g more general advance in the stock
market had il not been for The pres
sure of foreign holdings Of American
stocks. The proposal of the British
governments for an additional tax Of
10 per cent upon American stocks
Rill stimulate foreign sales and
tend to weaken this market
Peace RumOrs Persist.
The war has been a less potent
factor In business and finance than
for many weeks. Peace rumors per
sist. ;he allies however still main
tain unwilIingness to consider any
proposals at this time. Peace Is of
course drawing nearer. but Is not yet
In sight Meanwhile, many of the