South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-12-15
America Enters Reconstruction
Period Financially Prepared

Problems ahead OF US always loom
large,-larger than they really are
when the time comes 10 solve them.
In looking back over the war one
is more and more impressed with
the wonderful way in which Ameri-
cas- plans have been worked out
There have been failures and newt
table set-ba cl1s but a general view
Of this Country's achievements i'm
presses one with the splendid way
in which they have been forcibly
carried out TO a successful glorious
termination.
Ii is clear 10 every thinking per-
son that there are many problems
yet confronting US that Will require
skilful guidance and careful steer
ing. but those Of the future will be
no harder than those OF the past,
which have been so successfully
solved and we may feel assured that
future problems will be as satisfac-
torily taken care Of We may also
rest assured that this country has
period OF great prosperity awaiting
il as soon as the necessary peace ad-
justments have been made.
America Enormously Wealthy.
America will enter the reconstruc-
ton period with enormous wealth,
efficient industrial plants and highly
developed commercial and financial
resources and it will be for America
to take a leading part in the task Of
reconstruction and development that
is ahead.
As much money will be required
during the next few months to pay
war expenses, Cab was reased 10
place our military forces in the
field. 1t will be largely the task Of
the banks to meet this obligation.
America entered the war a debtor
nation owing the world three and
one-haIf billion dollars and she
energies with the enormous sum
Of eight billion dollars to her credit
with the allied nations. This money
loaned for comparatively short peri
DDS will not be paid back into this
country when due, but will be re-
financed by long term obligations
and II is very probable that further
loans to these countries will be nee
essary for they will be in need OF
raw materials and food for at least
a year to come.
These purchases can not be made
unless credit is extended here and it
is OF course to the benefit of this
country that such purchases be
made in order that our business may
be sustained during the critical time
that war business is being cancelled
mother Loan Necessary.
II we continue to increase these
loans our government will necessar-
ily be compelled 10 borrow in order
TO take care of them and there viii
be at least one more Liberty Loan
which will probably be for only a
short term, and likely at the same
rate as the last one. AZ 60. There is
no doubt but that 1t viii be readily
absorbed. II seems 10 be the plan Of
the government that other funds
needed will be financed through the
banks by United States certificates
Of Indebtedness.
IT has been an exceedingly fOrtu-
nate thing for this country that the
Federal Reserve bank had been es-
tablished and was in excellent op-
derful efficiency was proven by the
way In which we have managed the
greatest financial operation I'm
the worlds history and the United
States Will compete strongly with
London as the financial center Of
the world. II is not likely that this
country will ever again pass through
the financial panics that have dis
rupted business in the past.
Shipbuilding Industry Great.
This country has also established
the greatest shipbuilding industry
OF the world. We have today under
construction s19 shipbuilding yards,
twice as many shipyards as there
are in all the rest of the world COM
bined. These boats are not built
by private capital. They are built
by the United States government