South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-10-17

An upward movement i'm the quail
its % goods produced will be "a de
rect result OF slackcning demand
and keencr competition throughout
industry The public IS demanding
a better quality % manufactured
goods az the same money. Hitherto
quality has been synonymous with
prices inflated beyond reason Both
capital and labor haze been slack
ing and both must prepare for
sterner tests than any yet imposed.
The rising tide Of imports viii re-
quire the erection and maintenance
OF a high standard Of quality for
goods offered IN the home market.
To compete with foreign countries
in ali markets Of the world pro-
ducers again must stress quality as
we'll az quantity production.
Manufacturer face sacrifice as
a necessary step ln readjustment.
The question arises whether there
can be any genuine deflatiOn with
out n general reduction Of wages.
Efforts TO postpone readJustment
and work off surplus stocks Of
goods on favorable terms are Obvi-
ously failing IN most cases The fact
that receiverships are not more
common atests the volume OF ac-
cumulated profits and the variety Of
eIpedients resOrted 10. Interest and
dividend payments for the third
quarter payable in September are
large and compare quite favora bly,
with those a year ago.
Unemployment has not yet be-
come acute and Is not likely 20 be-
come so, in the view Of different
rrfFfna
tails like railroad equipment and
housing preclude an extended per
Tod or stagnation I'm industry. Bread
lines this winter are nevertheless "a
possibility.
Large producers are particularly
anxious 10 keep production uniform
from year 70 year. Small producers
can shut up shop for months at a
time with relatively less loss. AS 4
consequence. large manufacturers
are bringing pressure to bear upon
Jobbers. wholesalers and retailers
with a view 10 forcing price reduc-
tions that will clear the stores and
warehouses OF goods purchased at
high prices. Producers are today
prime movers in instituung read
1ustment
Middle western and western
farmers generally favor the pro-
posed Improvement OF the ST. Law
renee river. designed TO permit direct
transportation OF grain and other
products at a considerable saving.
Eastern seaports have opposed the
project, Ostensibly because Of it's ex-
pense and other alleged practical
difficulties. but in reality because
they saw IN 70 A menace 20 their own
supremacy. For this reason IL is re-
freshing 20 ind that the National
city bank OF New York itself takes
a broad view OF the question, hold
Ing that any measure that benefits
the interior viii benefit New York
To take any other view would be
"short-sighted and unworthy OF the
city's position and prestige" the
bank declares. The manifestation
OF a similar spirit throughout the
east would seemingly assure the pas
sage OF legislation needed 10 finance
the project
One argument against the plan is
that II would provide a highroad OF
invasion upon which ships OF Great
Britain and Canada might ride. The
relations which have long existed
between Canada and the United
States and the many ties which unite
America and Britain do not warrant
this objection Were war ever de-
clared, the United States has still its
navy.