The Birmingham age-herald., 1914-10-14

heavy increases of pay rolls by indus trial organizations within the past four weeks. One example will probably be sufficient. One of the largest of Amer iean industrial organizations found for the past year that it's weekly pay rolls average about 5000, pay roll that re- fiected business depression. That was not 50 per cent of the pay rolls of the organ ization In times of good business. In one week the pay rolls increased to nearly S20,00o and last week approximated $50, O00 There is another side of the feature. The various plants of this organization have recalled employees who were necessarily laid off and have put upon full time others who have been working only three days week. Some of the plants are fairly swamped with the business that has suddenly come. almost all of it rep- resenting orders which have been received from one or another of the nations across the sea which are now at war.
 The knit goods industry is now being Tn like manner stimulated and if it could be also reported that the cotton manu- featuring and print goods industries were also driven 10 their utmost capacity then II could be said with truth that the tex tile industry of the Unled States was stimulated to degree never before re- corded.
 Big Orders and Big Payment
 Only few O fthe large orders which have been received by our industrial man. agers from representatives of nations across the sea have become matters of public knowledge. The news respecting these orders has leaked out, generally to the regret of those who are interestd in them
 the clearing house will reveal the magni- tude in dollars and cents of many of these orders. The transactions are carried on upon the spot cash basis, Russia, for instance. pays for the goods purchased by her as soon as they are delivered to the steamer or to her representative. Rus sia assumes all of the risk, pays the insurance and is taking as little risk as possible by asking that the commodi- ties be shipped by way of the Pacific.
 Russia is prompt pay and so, in fact, are the other nations of Europe which are beginning to buy so heavily of Amer ican commodities. The manner in which payments are made leads to the suspicion that Russia, Japan, Italy. England and France have established fiscal agencies in New York through whose hands the drafts which are drawn in payment for commodities are passed on the way to the clearing house or the banks.
 It is inconceivable that these money transactions, which are large and that the heavy exports which are likely to in- crease during the fall and early winter should be without any effect upon our in- ternational financial relations.
 The Question of Gold
 Every manager of the foreign exchange departments of the larger New York banking institutions feels some apprehen- sion about the gold situation This is not entirely due to the foreign exchange prob lem. For it is known in the best informed financial circles that China is now con templating establishing her money sys- tenn upon a gold basis. Preliminary ne- gotfations or plans for adopting the gold tasis are and have been for some time under consideration by the government of China. Probably the conditions created by the European war will cause delay of the preparation made by China for estab- fishing her money system upon the gold basis. But at the first convenient oppor- tunity China will, according to the views frankly given by the foreign exchange ex- perts, undertake to shift from the silver to the gold basis.
 This will entail a draining of gold from other countries toward China and princi- pally frc-'l the United States. The amount involved will be large, so large that it may seriously effect international money market situation. Ultimately the change lioiil tue SllNeT to the gold DaSlS Tn China will be of advantage, but for time it may seriously interfere with international money operations.
 New Fields
 For this reason, every report of an en- largement of gold mining operations or the discovery of new gold fields is well comed by the banking authorities There could not have been a more gratifying an- ncuncement from the gold point of view than the one which came from Alaska recently which reported the discoveries of new and apparently rich deposits of gold The hope is strong that Mexico and Amer lea will contribute within a few years to the worlds store of gold in such appre- ciable amounts as will aid in restoring the equilibrium which must necessarily be as soon as possible after the European war is ended and which, furthermore, will en- able China to shift from the silver to the gold basis. Hints come to Kew York that when Russia can turn her attention from war to peace sufficient transportation from the large cities of Russia to the Siberian gold fields will be established. There is no doubt that if the recent re- ports fro mAlaska are found to have been Justified the needed transportation to the new gold field will be secured
 The authorities here say that within the next 10 or 15 years there will be needed a great increase in the yearly output of gold if normal conditions are to be re-es- tablished.