Arizona republican., 1914-10-11
CLUB NOTES

of it's income from import tax. Some of this loss might have been averted had the United States been possessed of an adequate merchant marine Congress, in the first days of trans oceanic shipping shortage, realizing that our stringent navigation laws precluded American registered boats from competing with vessels sailing under the more favorable European registration, hastened to enact legis- lation tending to encourage American registry of vessels owned by Ameri- can citizens or corporations controll- ed by Americans. However, compli- cations arose: not only our neces- sary adherence to StrictT neutrality preventing us from shipping supplies to belligerent nations, but as well the danger attendant to neutral ships laden with cargoes to other neutral nations being obliged to traverse seas net worked with explosive mines So that. even with the encourage ment of more liberal registry laws and government insurance of cargOes, ship owners still hesitate in the midst of war, to make any radical changes in their former policy Thus, an American merchant marine is still visionary and our over-sea trade is confined to the open channel estab- lished between England and America.
 This much for our ability to de- liver to the European foreign mar ket. any increased output of our in dustries for which the exigencies Of war might create a demand
 consideration of our ability to deliver to Latin America brings us to the credit system. Heretofore our credit to these and other smaller foreign countries has been extended through our medium of exchange with England, who now is reking in every ounce of gold upon which she can lay her hands. Over half of Latin American imports during 1913 came from countries either now at war or under embargo of war, and these inn ports consisted mostly of manufac- tured products which the industries of the United States could supply. Over half of Latin American exports were of raw materials to European markets. a considerable portion of which the United States could take over and use in their manufactories. There is, accordingly, in round num-
 bers, about billion ana a half an
 nual business awaiting re-adjustment, and if the financial and commercial
 interests of the United States can work out a mutually satisfactory plan of additional exchange between
 this country ard America of raw and manufactured products, United States industries will have benefited from that source as re-
 suit of the war.
 Internally, United States industry does not seem vet to have been de- leteriously effected by the war, talk
 ing as the barometer of the volume of trade the bank clearings, which sys- tenn as It is conducted in the United States, is said to be the most sensi- tive and accurate record of the vol tune of trade possessed by any coun- try. This record for August shows that outside of New York; where the Stock and Cotton Exchanges arc closed. the total turnover of business. representing wealth -creating indus tries, agricultural pursuits, and mer- ! chandising was only AS per cent less
 than last year, and by eliminating Boston, Chicago and all southern ci- i ties which are not affected by the | closing of the Stock and Cotton EX- 1 changes, the diminution in total clear 1 ings for August 1914 in comparison
 with August 1913, is brought to 2g per cent, which goes to show that
 our industries have not been put out of business. True, we hope to ex- pand them, but expansion demands 1 time, and in these early days, if man.
 ufacturers have been awakened to d ! necessity for equipping for expansion
 and if domestic demand has been
 stimulated, the first steps have been
 taken toward an increased industrial
 output.
 l The iron production shows an in crease during August. and the number
 of idle freight cars was decreased The shoe and harness manufactorios
 are running at capacity, a condition
 unknown heretofore. Increased de-
 mand for explosives has benefited 1 the powder trust The embargo on sugar imports has sent the price of i sugar soaring. which should boost
 the sugar beet industry to an effort i to supply the import shortage inci-