The Birmingham age-herald., 1914-11-28

able to pay for the establishment of it's plant at Gary out of earnings, and aside from the bonded debt which represented Its Organization it has been free from debt. The Guggenheims make every dol lar of earnings gain something in the way of interest.
 Apparently, Mr Schwab either counts on earnings now in hand or upon pros- pective earnings, for meeting the heavy expenses which the enlargement of his business will entail or else upon very prontable returns upon increased business. That would indicate that he looks with confidence to very large new bushes and of kind which will make handsome profits possible. But if he Is Justified in that belief, then 1t Is fair inference that other large manufacturing interests in the United States may with confidence expect increase, and there can be no great increase in manufacturing industry with out being SOC ner or later reflected in all departments of domestic business.
 What Will Make Prosperity
 Aside from MT. schwab's intimation that he will not be compelled to finance with outside aid such increases as his manu- featuring plants will find necessary to make, the most important feature of his communication seems to be, in the opin- lon of those qualified to judge, his reason for predicting with confidence a great re- vival of American domestic business in all departments. He recognizes the imme- date influence of a favorable kind upon our financial situation which was created by the sudden and enormous demand made by the belligerent and neutral na- tions for commodities produced in the United States. This change in our inter- national trade in our favor MT. Schwab admits was of immediate and controlling influence in securing a return to normal financial conditions so far as the foreign exchange market is concerned But after al this is a one-sided or partial view to take of the new situation as 1t had been suddenly developed and with equal sud- denness has opened up opportunities in the United States. in MT. Schwab's opin- ion. He is the first American business man to refer to our increased foreign trade on immediate account of the war as of no more than incidental although of great importance. He appears to look upon this trade as emergency business and for that reason a condition whose predict.
 The Worlds Markets
 But there Is another condition which, in MT. schwabs view. is regarded as of great importance, and since this communi. cation has been made public it has fre- quently been spoken of as the most val- uable consideration yet publicly 1pAd6 by any leading American business man. The European war will, in his opinion, inevi- tably cause prostration of industry al most complete in Belgium. very great in France. of magnitude in Great Britain, and, of course, of far-reaching extent in Germany. This prostration in industry. together with the time needed to recover from the demoralizatlon of war, will leave many markets throughout the world which hiterto have been controlled by England, Germany and to some extent France, open to the United States. This Is especially true of South America. MT. Schwab speaks by the book when he re- fers to the South American opportunity; in fact, in one portion of his commun4ca- ton he says frankly that among other objects of his recent visit in Europe was the consultation respecting the great for tiflcation work which was now in prog ress in Chilli. With that work Mr. Schwab and his manufacturing company are prom inently identified. Furtherwore, he IA about to engage in extensive mininls in Chilli and speedily will have fleet s,f six steamers whose business it will be to transport iron ore from ths~ Chilean mines. of which MT. schwah.- mas obtained concession. to an America.i seaport Bal
 
 South American countries and some of those of the far east which have hitherto relied upon England and Germany for much the greater part of the products they need VIII almost under compulsion seek the A14rican markets for these com- mooiues That means the establishment or trAde which having once been gained sno)Md be maintained. A trade of that Find differs from the export trade which 1 Ia represented by commodities purchased here for the purpose of carrying on the European war. It is upon the expansion of our trade intercourse with neutral na- tons that MT. Schwab relies for the in- crease maintained for years of American business activity in all departments. MT. 6chwab is not . man who changes his mind without reaso4 or what he believes to be good reason. A year ago, and even in the spring of this year. he had what he thought were excellent reasons for Nbe- 'lieving that American business life would be more or less stagnant for several years. The sudden and world-reaching shift in the center of financial and com- mercial gravity which was caused by tho outbreak of the European war. coupled with what he believed to be a change in the attitude of the American people to- ward business life. now justihes him i'll altering his view, 90 that instead of be- ing somewhat Respondent. he now con fapnaa hf1nNa1f fo ba an Aufhun1n affe m.