South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-06-26

considerable advantage TO our for
eign rivals I'm their new start. es-
pecially 20 Germany. which will bend
every effort for recovery Of her lost
position ,u the worlds foreign trade.
Europe also will face handicaps i'm
the form OF huge debts. high cost
OF living scarcity OF skilled labor
and higher wages than prevailed be-
.Tu the war UnavOidably trade
rivalry wili be keener than ever he
fore in the worlds history: conur-
melton o. this is being already fur
nishcd bs new efforts in merean-
tile circles abroad for tariff treaties.
discriminating duties and alliances
and conventions Of all sorts. Unless
all signs fail, the world is in for a
series of hostile tariffs is not actual
bOycotts against the central powers.
a tendency much to be regretted
and one that should be strenuously
opposed by all who desire a lasting
peace. Such policies will certainly
keep alive international animosities
and friction. there being nothing
oich nations more quickly resent
than interference with their COM
mercial activities. and nothing in
modern civilization more likely To
provoke another war than retal'a-
tory tariffs.
Crops Backward.
Among unsatisfactory domestic
conditions thus far ignored is the
prolonged backwardness Of the
crops. This may be offset by warm
weather later on. while good prices
and a good surplus OF wheat and
ample yields of fruit and hay are in
any event cOmpensatiOns Of impOr-
lance. The only other drawback Of
real significance Is the labor out
look, which is a matter of very ser
iOus concern to some industries. The
prospect Of "a great railroad strike
OvershadOws the whole situation. II
seems hardly possible that a section
Of railroad employees will. for their
own advantage only, throw all their
fellow workers out of employment.
recklessly bringing business and
e importation to a practical stand
still throughout the country Surely
labor leaders have not so completely
lost their reason as appears: else
they have completely overlooked
the consCC UCnces to themselves Ct
unduly irritating a long suffering
public opinion. In no other direc-
ton is such great power welded
with out responsibility or regard
10 either the public or the govern
ment. A strike OF this character
would probably lead congress to i'm
pose some form Of legal restraint
against such reckless abuse Of
power.
Mart to Stay Low.
From the above it will be seen
that conditions do not favor an adj
vancing market at this time. Money
is easy and bank reserves are ris-
ing. The Mexican crisis does not
promise 20 seriously affect interest
rates. since campaign could he
easily financed by either short term
issues, or the output Of Panama
Canal bonds. Fortunately there is
an abundance of funds for both
lending and investment purposes.
The railroad position is generally
satisfactory. apart from the possi-
bility of a strike just referred TO.
The recationary tendencies Of bus
mess. however. the weakening of
commodities, Indifferent crop situa-
ton and the labor outlook are all
in favor OF liquidation. especially
in view OF the high prices at which
some OF the war industrials are still
selling. Some very sharp declines
have already taken place. czDecially
I'm mineral. munition and Mexican
shares, and liquidation has appar-
emily not yet run its course. Sudden
fluctuations are 20 be expected at
any time in securities affected by
the European war or the Mexican
crisis.