South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-03-26

critical period. but at serious ex-
pense TO the railroads. Doubtless
the government appreciates such a
result. hence there is good reason
TO expect that the interstate COM
merce commission will advance
rates sufficient 10 compensate for
these increased OUTLAWS.
War preparations will, OF course.
compel intense activity in the NUM-
tions industry. Immense quantities
OF military equipment will have TO
be turned out with all possible
speed. Not a few industrial plants
have already been offered to the
government, and industrial mObili-
zation on a stupendous scale will
soon be in active progress. This
means a sudden and urgent demand
for many commodities. and the
withdrawal Of so many men from
productive employment will natur-
ally aggravate the scarcity OF labor
and tend 10 increase wages. Dur
ing such upheavals more or less
friction is inevitable. What the ef-
feet upon our foreign trade will be
remains 10 be seen.
Our exports should continue upon
a large scale, If efforts TO supply the
allies with munitions are main
tanned. Mobilization OF railroads
am industry Is we'll under way, and
American financiers, 1 am quite
sure. are well prepared 20 give our
government all financial aid needed.
What the rate will be remains to be
seen; IL should be within 10 per-
cent, as these bonds would be in
demand for trusteeships and other
fiduciary purposes. In the present
state OF the capital market. how
ever, when the strongest govern
ments in the world are paying TO
percent and over, the United
States could not expect TO place
big loan at ordinary peace rates.
1t could. however. place a substan-
tial loan on much better terms than
any other country in the world.
OF late the call for new capital
from domestic quarters has been
less urgent. and considerable of the
new financing has been in foreign
securities; the latest examples being
the French loan for 100000, 900
which is being readily taken, and
a forthcoming Canadian loan of
$3.50, 100000 which will also find
ready purchasers our national
banks are in exceedingly strong po-
sition. and well able TO meet all
contingencies likely TO arise; backed
as they are by the federal reserve
banks which hold $500, 0OO,0 900 in
gold ready for any emergency.
Under such a mass of conflicting
conditions. it is impossible TO fore
cast the trend of the stock mar
ket. Technical conditions are
sound. Activity in steel. textiles,
minerals and collateral industries
continues at top speed. Our exports
are heavy; gold imports continue;
funds are plentiful; our banks. as
already said. are in good shape;
spring with its natural stimulus is
close at hand. and war with it's in
hationary tendencies. is already
making itself felt. On the other
hand il should not be forgotten that
peace is drawing nearer each day,
and the end OF the war is not far
distant. When that longed for
event comes, there will be an end to
many of the activities based upon
that set of conditions. Peace will
bring its offsets and an extensive de-
mand for reconstruction purposes.
but the reversal of such tremendous
forces or their cessation cannot but
profoundly affect the whole econom-
ic world. Some lines of endeavor
will quiet down with the coming of
peace, others will become more ac-
tive. and the discOunting of new re-
adjustments will doubtless begin be-
fore the event arrives.