South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-01-22
Finds InduStriaIS Like Steel
Will Not Be Hurt However
by Wars End.
BY Henry Clews.

ity markets are now adjusting them
selves 10 a new situation. The
strictly war industrials have par
italy but not entirely recovered
from the reaction precipitated in
December by opening of peace nego-
tiations. These shares are now be-
ing handled with caution by specu-
lators and investors alike. since it is
recognized that the furore therein
was overdone. as was freely pre-
dicted in my previous advices.
Another class of industrials.
which benefited from but was not
dependent upon war orders. has en-
joyed more marked recovery. This
was especially true of some Of the
steel shares. For these il is we'll
understood that peace will not mean
cessation Of prosperity. On the con-
trary. what is lost in abnormal war
orders will probably be largely Off
set by peace orders for reconstruc-
ton work abroad, IL being fully
realized that under the most favor
able circumstances Europe will be
unable for several years TO come to
meet the demands for rebuilding
cities, railroads, bridges. cars.
steamers, etc. The railroads of
Great Britain, France, Germany,
Austria Hungary. Russia, etc. have
been overworked and under-repaired
ever since the war began.
All Need Repairs.
Every one of these countries will
no nh 20
pairs and REFRESHMENTS outside as
well as inside the war zone. Their
| own steel facilities will be tremend-
ously overtaXed, and the only other
satisfactory source of supply will be
the United States. II must also be
remembered that important enter
| prises and construction work in all
parts of the world have been held
| up by this great war. Fully 1000
600 tons of shipping have been de-
| strOyed since the war opened. Great
Britain. with her enormous ship
! building capacity Of about a million
| and three-quarters tons a year, will
| require several years 10 make good
! her loss of 100000 tons by war
| British ships have suffered hard
| usage and repair bills will be ire
mendous, while a larger tonnage
| than usual will be scrapped for the
| first year or two after peace is es-
! tablished
| American shipyards will conse-
! quently have opportunities never
dreamed Of, and for the next two
or three years at least foreign and
! domestic orders will keep them
| fully employed, even without the
expected orders for the American
navy or the new policy of prepared
ness. Still another helpful factor
is the trade activity within the
| United States. which insures a large
! home demand for steel for railroads
| and other construction purposes
! There is good reason, therefore, tc
| anticipate a period of prolonged ac-
! tivity in the domestic steel industry
but profits cannot be expected tc
! continue on the abnormal scale OF
! 1916, since the competition is grow
! ing and costs Of production have al
ready risen abnormally.
Going After Export.
Interest of American manufacture
ers in export trade is growing fast
! Our past failures to win and hold
] foreign markets. because Of our dis
! inclination 10 meet foreign condi-
tions, have taught US an effective
] lesson. One of the first requisites
/ 10 enlargement of American foreign
/ trade is a suitable banking system
| which, though formerly lacking. is
| now being rapidly supplied. The
| war pushed us into a position that
would have taken "A decade TO ac-
! quire; we have gained a footholC
in foreign markets formerly domi-
/ mated by Britain, Germany OF
France from which il will be diff
/ cult to eliminate US. or course
| these countries will make strenuous
efforts for their recovery; hut for
/ tunately we have great advantage:
| in enormous plants, high efficiency
greater adaptability and. as Just
said. improved banking facilities. Il
| is unnecessary for US 10 have any
/ fear Of so-called dumping. for Eu.
rope will have no surplus TO waste
in this fashion for many years. and
| costs OF production there must re-
main high because Of the scarcity
| Of labor. high taxation and Other
handicaps, the legacy Of the war
Nevertheless. the United States
will have to face a strong compe
tition through the increased eff
! cheney of both labor and capita
upon the other side. British plant,
| are cOordinating their forces anC
! improving their methods in a mos
! energetic manner for the purpose o.
| going after trade when the war i.
! over, and labor in Great Britain hai
| already recognized the situation by
! nearly doubling its output anC
| showing a more intelligent desire 4
! cooperate with employers in main.
tanning British supremacy. A sim
liar policy must be adopted in thi.
country if we are 10 win and hold
larger share Of foreign trade. W,
! need have little 20 fear from tn.
| proposed economic alliances which
! " ere discussed al the late Pari.
| conference. for the reason tina
these cannot be made 10 work. anC
|