New Britain herald., 1914-08-22

 worse conditions than yet seen.
 A fair idea of the effects of the war on the United States can now be had. As the demoralization of the first shock passes away, it is seen that German commerce and industry will suffer more than any other. The United States will temporarily suffer from the loss of German imports. These, however, will in due season be compensated for by supplies ob- .tained from other countries and by the creation of new or stimulus of old industries in this country. This may or may not revive the tariff as an issue. Our steel industry will ulti- mately also benefit, for many of the orders which at one time went to Germany will now be filled in Ameri- ca Our cotton mills may reasonably expect larger orders for export, which will somewhat offset the loss of Ger man purchases of raw cotton. Ger many transacted a very large trade with South America, much of which she will lose to the United States. The American sugar industry will also profit largely by the temporary loss of the German supply. The worst of the shock of war in this country has already been felt. We may see it's later effects in high prlces of food, while the dislocation of industry will temporarily increase the number of unemployed. Ultimately, however, our industries will receive great impetus, and if any country in the world can possibly benefit from the colossal dis aster now hanging over Europe, it will be the United States, which is happi- ly free of all foreign entanglements and should absolutely keep so.
 Under Severe Strain.
 Considering the abnormal condi- tions which have prevailed since the European nations became engaged in a death struggle, ,ne banking fn- terests throughout the country have handled their affairs remarkably we'll; neverthless, it goes without saying that the banks are under a severe strain to provide for the legitimate wants of their customers and every measure calculated to relieve the sit uation should be resorted to. Tn about two months time it. is under stood that the federal banking sys- tenn will be in operation. It should 1 be started in a much shorter time, if possible, for the simple reason that when this becomes fact the National banks throughout the country will be permitted to reduce their reserve re- i quirements quite considerably. It Is ! estimated that the deposits of coun- ! try banks amount to about $26OO,- l OOO,O00. Under the new lew the re- ] serve on these deposits will be re- ! duced from 15 to 12 per cent. which : will release $78,00O,00O The depos- its of National banks in reserve cities are placed ta $2,000.000,00O. Under , the new law the reserve will be re- i duced from 25 to 5 percent, which will further leases $200,000,000. Depos- its of National banks in central re- serve cities are. say, $1,6OO, 100000; the reserve requirements of these banks will be reduced from 25 to IS per cent, which means an additional reduction in reserves of $112,OOO,0OO. From these figures it will be seen that the total amount to be thus released to the National banks under the law Will be s39O,0O0,OOO. If there ever was Justifiable occasion in the f1nar- clal aHalrs of this country which calleo TOT prompt action 1t is prob aDly now. To my mind, therefore, 1t would undoubtedly be wise IT some means could be found to p,,t in oper- ation that part of the law which would permit of reduction in re- serve requirements of the National banks. This would certs.niy pur rne country on an easier and more com fortable financial footing than arv other plan that could pc at nrese,t devised, besides enabling the hanks l to increase their call loan facilities which, at present is an essential need. 1
 Death of Commerce.
 This war will probably prove which l is the mightier. It is to be hoped that 1 1t will destroy the use of the sword and make the power of the pen ever lasting. If so, this will be the las