South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-01-02

4 memorable year has passed.
The year 1917. with all its tragedy.
has taken its assigned place in his
tory. II was a year crowded with
great events. vast undertakings and
achievements. victories and defeats.
| Unprecedented financial plans and
operations. and record breaking &C
cOmplishments. great disappoint-
ments and gigantic sacrifices - a
year during which every undertake
ing was measured by a new stand
ard. Patriotism. the nations good
rather than personal profit became
! the new criterion. Every moment
OF the year was crowded with epoch
making events.
The stock market has been but a
mirror. reflecting the worlds strug-
gle Every military and diplomatic
move found a quick response in our
market and an attempt 20 adjust
J values accordingly. A review Of
/ the stock market of 1917 is. i'm a
! measure. a review of the war They
I are so closely interviewer that IL is
/ impossible TO separate them. This
| has been particularly true sine the
| beginning of the year when il be-
] came evident that our own entry in
| 10 the struggle as an active partici-
/ pant was inevitable. We were then
suffering from the ills produced by
| the Misrepresentation of the pre-
| vious two years. and from the in
evitable liquidation that eliminated
| with the Berlin peace proposal Our
4
| to the prevailing conditions when
I the shocking news was carried TO
/ all the world by the wireless waves
/ that ruthless submarine warfare
| would be resumed by the German
government Again. our market was
/ thrown into a state Of uncertainty,
/ with its consequent price irres ular
/ ity continuing. while events. follow
/ ing each other quickly. eliminating
| in our own declaration of war.
Commercial Position Changes.
Instantly our commercial posi-
| ton i'm the world changed For three
/ years we occupied the position of
manufacturer. merchant, exporter
and baker. Now we became an ally
! of the nations warning for civiliza-
ton. We assumed new obligations
I and burdens.
For three years our main prob
/ lem was to produce, to satisfy a de-
mand for our products that taxed
all our facilities. The extent OF the
profits was limited only by our con-
science and the buyers ability TO
pay Now il became a question of
4 what proportion of our profits We
| would be obliged TO surrender TO
/ the government. 1t became self
| evident that taxes must be increased
! to provide revenue 10 meet at least
! a portion of the nations extraOr-
| binary requirements. II was not,
however until congress was actual
! " engaged in framing a revenue
bill, that the nation began 10 realize
the extent Of the burden that we
/ had assumed.
In the meantime. plans had been
perfected for the flotatiOn of bond
issues. The first, and smallest, was
for an amount that seemed to be
staggering. even to those of our
fnanciers who were accustomed TO
large transactions.
1t may not be at all out of place
mere 10 mention that the brilliant
| success achieved in the great public
subscription 70 the Liberty loans
was due as much TO the patriotic
spirit. self sacrifice and untiring eff
fort OF Americas bankers and
brokers and the army of their as
sistsnts as to the general supervi-
sion and more general planning of
| orr reserve banks and the treasury
department.
New Problems Arise.
At this period we met with new
7 problems in the stock market. New
and unexpected reasons for further
liquidation were becoming mani
fest. A new and an unexpected class
of sellers of securities appeared in
, the market. owners of stocks and
! bonds, whose investments were al
ways of a permanent character
who. in the past. were never in
fluenced by the fluctuations in the
2 market. except to take advantage OF
depressions to make additional pur-
chases. became uneasy This class
Of investors now appeared as sell
ers. and, at a level of values that
heretofore would have brought
forth additional buying orders
Stocks and bonds were being SOLD
$ and the proceeds invested in Liberty
e bonds Whether the motive be sole
I | y or partially patriotic. or entirely
; TO readiust investments with a view
2 Of securing the largest return pos
I sible under the new scheme of taxa
ton, is here immaterial. Here. We