South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-02-05
GERMAN DECISION
AMAZING TO CLEWS
FinanCier Can't Understand
How She'll Benefit by Los
ing Friendship of u. S.
BN Henry CIcWs.


we're break on the stock exchange
and inflicted a violent attack on all
the commodity markets most affect
ed by war. Subsequently there was
"A sharp recovery in prices. but the
tone was unsettled and a spirit Of
apathy prevailed pending fresh de-
velOpments i'm the international sit
uation. The relations between Ger
many and the United States are
more critical now than at any time
since war began. and what the out
come will be is beyond safe predic-
ton II threatens 10 draw other
neutral nations into the whirlpool,
including the United States: il GER
tainly proves that Germany is driven
20 despe ration. which in all proba-
bility will hasten the end OF the war
How Germany is going 10 benefit by
the multiplying OF her enemies and
losing the friendly interposition of
the United States cannot be seen.
Suffice L 70 say that with such
weishty uncertainties confronting
the world all business engagements
Will have to be made with even
greater cauntiOn than before. All
Europe $ seething with unspeakable
passion and bitterness, bent on wreak-
ing its destructive forces 10 the ut
termost. What vii happen between
now and the end of the war is be
yond human foresight.
Home Trade Good.
Home trade, apart from war in
a., s-F.
In January the new charters for
companies of $4,000 and over
aggregated S244,0OO,OOO. compared
with S270,000.0 a year ago. when the
total was abnormally increased by
the inclusion Of two big concerns
having a combined capital of S110,-
600. 900 These new interpretations
reflect the large profits of last year
and the revival of enterprise. Cen
eral business is sound and is usually
conducted on conservative lines;
credits are not overexpanded. money
is easy, collections are good, labor
is well employed, the steel industry
continues active, and the outlook for
1917 is hopeful, despite the probable
early loss of war orders The agri-
cultural classes are exceedingly
prosperous: probably more so than
any other farmers in the world. and
there is every reason to expect that
they will enjoy another profitable
year Business Will naturally be af-
tested should we be drawn in to the
European struggle. but this will be
felt chiefly in the east, which natur-
1,
than the west although the latter
cannot escape the reflex action.
War Orders to stop.
Of course war orders viii cease
when peace comes. if not before. Our
exports during the fiscal year ending
June 1914, were $2.330,000,0OO.
compared with s4,272. 100000 in the
same period of 1916. OF this increase
amounting TO S1,942.O0O.OOO. consid-
cradle was due 10 imitation; much 70
war orders, and not a little 10 in
creased shipments 30 other countries
which had lost their usual source OF
supplies There was an increase in
exports Of over $50, 900, 900 in horses
and mules. which will probably not
be maintained. In sugar there was
over SIS, 100000, i'm brass goods near
~ S16O.0O0.OOO, In explosives over
S45O,OOO,, and in breadstuffs, S2S,-
100000. not 10 speak of many other
important gains that cannot contin-
ue. If there were no COmpensatiOns
for the disappearance of these gains,
the result would indeed be alarming.
hut 50 is quite evident there will be a
marked recovery in directions now
suffering by war our cotton eX-
ports for example, which fell from
$1,000 GOO to 1874. 100000, should
certainly show a big recovery. For
our farm products, there Will also be
heavy foreign demand at good
prices. although release of Russian
wheat supplies will be factor of
Importance. The probability is that
there will be a shortage Of food in
Europe for at least one if not two
years. The property loss in Europe
resulting from the war has been es-
timated by competent authorities at
about SO 600. 100000. This huge fig
ure covers only buildings, machinery,
roads. bridges. etc. in the war zone.
In addition. il must be remembered
that outside of the war zone indus
trial plants have been run at high
pressure for months with little
chance Tor repairs. and European
and British railroads and steamships
will require extensive Overhauling.
Consequently. for a long period
ahead. Europe Will BE- strenuously
occupied with reconstruction, so that
Great Britain and ourselves Will be
the only nations able 10 supply the
wants of other parts Of the world.
our manufacturers can. therefore,
confidently calculate upon receiving
liberal share Of foreign orders aft
er the war. especially for the in
Vulnerable forms OF steel products in
which Americans are particularly
skilled
Previous 10 Germany's last sub
marine note. the market was more
or less unsettled by peace prospects,
the leak investigation the proposal
10 tax profits exceeding S percent.
and the indifference OF Washington
70 needs of the railroads As 10 the
leak investigation nothing of much