Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1914-08-28
RI|S|NESS EFFECT
Of EUROPEAN WAR
'roonomic Expert Declares That Eff
feet on Business of the United
states VIII BE Beneficial

Washington, Aug. 23.-Daniel c.
poner. for many years statistical ex-
mart of the ways and means commit
40 and an authority on economic
.rhiects. has prepared the following
summary of the important economic
Conditions and changes in the United
gates. brought about by the war in
Europe:
The European war has precipitat-
cd distinct movement in the eco
romic development of the United
States. tho potential benefits Of
which will be realized by our people
regardless of what course that con-
fiet may take or what its ultimate
outcome may be. This movement
begins with a certain shock to the
economic organism. We have been
called upon to liquidate large for
eign holdings of American secur-
titles. Temporarily we have been
cut off from much of our foreign
supply of materials for manufactures
and from important foreign markets
for our surplus food products, raw
materials and manufactures.
This constitutes a disturbance of
normal conditions sufficiently serl-
GUS to cause alterations of the
fundamental industrial organization
and to create new channels of trade.
The ultimate beneficial effect of
such a disturbance is well known
and eyentuates even when the dis
turbance is accompanied by great
disaster and loss, which is clearly
not our case in the present instance.
Our country is in self-contained
and self-supporting state. 1t imports
only SIS worth of goods per capita
annually, and exports in return $25
per capita. This foreign trade is not
large enough compared with our do
nestle commerce to be vitality essen
tial to our national we'll being and
such as it is, the balance is safely in
our favor. The Importance of our
foreign trade, though great, is
therefore easily exaggerated.
But there is no reason to fear any
important stoppagc of our foreign
trade. Shipping is not suspended;
our commerce can be adjusted to the
changed conditions; the machinery
Tor international exchanges remains
Qalmpaired.
Inc circumstances of the war are
such that at the present time the
vessels of all belligerents except Ger
many and Austria, as we'll as the
vessels of all neutral nations, are
Tree to sail on the high seas without
any danger of molestation that need
ueter them, especially in view of the
provision by the several govern
ments of war-risk insurance.
only about one-sixth of the ton
mage OF our foreign trade has been
carried under the flags of nations
"HoSe shipping is now suspended. 1t
Is reasonable to expect that the ship
pins measures now being authorized
:" congress will effectually supply
any vessels needed in addition to
'aose now available. Moreover, it is
" DC noted that cessation of ship
ping between belligerent nations and
Ie establishment of effective block
"ues leaves free many vessels that
may De employed in American trade.
Ready Markets at Hand
Who will take the food products
auo raw materials that we normally
require to export?
onief Of these commodities are
"neat and cotton. Fortunately there
hardly any combination of circum-
sauces probable under which our
"neat and cotton and similar com.
u''ies Will fail of reaching fairly
suequate markets and ommanding
n'ees that will relieve the growing
s'''ons of serious embarrassment
ro'ided the producers will exercise
p'oper patience and cooperation in
n1atketing.
ho world must be fed. Nations
"ni stop fighting before they will
W., p eating. Germany and Austria.
81 81" are not now accessible to our
poiters' are said to he stocked
s'a PROV Isions - considerable
s''oo OF commercial isolation.
~ eiand and France, however, are
~ 30 situated and their ports, as
nj as other ports to which our food
= 'uucts regularly go, are now open
>, our trade. For our exports of
al, products We lose, therefore,
the markets of Germany and
Continued on page four