South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-05-04
The Financial Outlook
New Construction Must Revve-Prices of Materals-Ac
emulation of Capitalization
80 of Stock Market

The last Liberty loan campaign
VIII soon be a thing Of the past The
desirabnity OF the Victory bond as
investments practically assures their
sale, even aside from the patriotic
determination OK the country 20
finish the job"
The peace treaty also VIII be dis
posed Of before long. even allowing
for the possibility OF further delay
over details The war will leave
certain aftermath OF unsettled ques-
tions. and further sales OF L.. S.
treasury certificates viii be han
died by the banks without any gen
ersl public Offering
Reimbursement OF prices 20
peace basis. in this country az any
rate, will be pretty much over by
the time the peace treaty is signed.
General business conditions already
show improvement The average
level OF our commodity prices rose
a trifie during March. In April IL
showed little change. though the
exact figures have not yet been com
piled. and no further decline OF i'm
pOrtancs is 10 be expected at pres
snt.
Prospect For New Construction.
II is time, therefore, 20 look
ahead 10 the conditions which viii
follow the loan campaign IL is
plain that business viii be good in
articles which pass directly into
consumption whether they be neces-
stiles or luxuries Evidently a lib
eral export business wiz continue
for some time-although the more
permanent outlook IN this direction
will depend on the extent TO which
our investors are willing 20 absorb
foreign securities. thus in effect
lending foreign nations the money
with which to buy our goods.
There IS. however. one important
field OF activity where dullness still
prevails. and that is new construc-
ton lines. That situation may be
somewhat modified by our present
larger foreign trade than before the
war. which I'm part take the place
OF constructive activity. But the
outlook for new construction is
nevertheless Of very great interest
at this time. The steel copper
lumber and allied industries are
closely bound up with the promo
ton OF new enterprises, the enlarge
ment and development OF old ones,
the erection OF new buildings. etc.
During the war we were COM
PEELED TO devote both our energies
and our capital to war purposes. so
that new construction necessarily
came 20 a halt. But now our CAPT
tai will begin 20 accumulate again
and as our military forces continue
10 be demo5ilized labor VIII become
available.
Few appreciate the rapidity with
which capital piles up in this cOun-
try. Before the war the increase in
our total produced wealth-not
reckoning such items as the increase
in the value OF land-was estimated
at over 1O,0O0OOO,OOO a year It
will be more than that now-cer-
tainly not less than SD. 600, 900, 600
annually. A considerable part of
this new wealth Is spent for inn
mediate use and enjoyment, but even
after this is deducted a tremendous
balance which can be applied 70
new enterprises at home or can be
loan ed abroad.
Prices OF Materials.
The price situation is now favor
able TO new construction. Our
prices for steel and iron products
are not more than 80 percent OF
English prices for the same prod
ucts Moreover, prices OF all this
class OF materials are relatively
lower than prices Of other things
in this country.
This fact is illustrated by the dia.