South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-11-16

The recent collapse OF the stock
market. even though IL be temper
airy. VIII check speculative tendEl-
cies. not alone confined to the stock
market, but rife throughout the
country. The general effect will be
wholesome. as IL will bring many
persons. hitherto infected with the
get-rich-quick micrObe, TO their
senses. encourage thrift and diligence
and thus increase production. and
finally permit the full expansion Of
legitimate business. The raise in
federal reserve discount rates was
instrumental in pricking the specu-
lative bubble and starting the down
ward movement Should unlicensed
speculation be resumed. a further
raise in rates is probable.
Despite the low point to which
federal Reserve bank reserves have
sunk. Gov. Harding declares that
liquidation Of bank loans is proceed
ing satisfactorily. Commercial rates
have shown a tendency TO harden,
but with national bank resources ag-
gregating s21. SIS. OO0.O OO-a sum
greater than the combined resources
OF all banks and trust companies in
19O9-moaey will be obtainable 20
meet the needs of business. The
Edge bill, which recently passed the
house Is virtually law Financiers
rely upon IL TO provide the surest
present means OF extending credit
with proper safeguards. Meantime.
foreign exchange has become fur
Their demoralized. touching new low
points In some instances.
Congress Is giving concentrated
and sustained attention TO the prob
lem OF railroad legislation. and the
prospect is more cheering than here
tofore. The house bill was 10 come
up for final action Saturday. Nov
10. The measure contained a man
date directing the carriers 10 apply
FOR rate increases within so DAYS
Further rate increases seem assured
IS the only means OF placing the
roads on a self-sustaining basis and
attracting the capital necessary for
replacements and additions The
house bill contained no anti-strike
provision similar TO that contained
III AAAF 1AAAAlAAAlc QAlAr DuN the NnAtL
executives OF the principal rail-
road employees organizations never
theless voiced opposition 10 it as
more subtle and therefore more
dangerous than the Cummins bill.
4 compromise. with strikes not &C
tually forbidden under all circum-
stances. but with restrictions laid
upon them. is probable. A temper
airy relief measure carrying the gov
eminent guarantee. should be the
net result or early conference on leg
isiation now before the two houses.
The labor outlook is rapidly
clearing. and the prediction Of those
critics who expressed optimism a
few weeks ago seem abundantly full
filled. The miners action in rescind-
ing the strike order VIII have a pow
erful effect on labor sentiment. not
only here. but throughout the world.
The governments increased sterness
and thoroughness in dealing with
the radicals Will further clear the
aid Actual effects or the coal
strike upon business are negligible,
as most plants and factories had a
supply on hand
Unified orders OF the steel corpo-
t-lon. which increased only 1855
GO tons during October. show the
restriction OF bookings and disloca-
tion OF the market occasioned by the
steel strike. October charters. num-
bering 1897 and totaIing the pro-
digious sum OF S2.363.SSs. exceed all
records by 20 per cent. and disclose
the rapid and accelerating rate or
current business expansion.