The Washington herald., 1914-09-12
THE SCANTY
PROFITS OF WAR

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Ever since. the war began men have
been writing and figuring about the
classes of, people and industries in the
United states that will gain a profit from
4 the European war. The impression seems
TO be quite widespread that there are a
great number of people and a great many
industries in this country which will
benefit directly from the war. and that,
possibly, these benefits will counterbal-
ance or exceed the inevitable losses that
will fall upon other classes of people and
Industries.
Broadly speaking the class of people
and industries that have already bene-
flied or that will benefit directly from
the war are, first Of all, the producers
Of raw material that enters into world
wide consumption, like wheat. corn.
meat. and sugar; and. second, those peO-
! pie engaged in manufacturing in the
United States in competition with manu-
facturers OF similar goods in England.
Germany, Austria, etc.
Let us take sugar as an illustration.
There is a constant daily market for
sugar all over the world. England alone
needs about 175, 900 tons Of sugar a month,
and produces none Of it, Ordinarily,
England gets that sugar from the beet
sugar producers of Germany, France,
and Austria. When the war broke out
this market was, Of course, Immediately
cut off, and England became a buyer Of
sugar from Cuba and competed directly
with American refiners. AS a result Of
that, there was an advance in the price
of sugar which was probably the most
striking advance Of all. The people who
benefited directly were the Cuban plant
ers, many OF whom had been on the
verge Of bankruptcy for years, and who
badly needed such windfall. and those
lucky spectators who happened to have
in hand large supply OF sugar. It is
said that single dealer in New Yory
happened to have on hand sugar which
increased in value about $780, in two
days
1t has always been the experience of
the world that in time OF widespread war
the producers OF foodstuffs are the prin-
cipal benefciaries. Our agricultural
classes, with the exception of the cotton
grower, are. therefore. libely to be the
benetciaries in this war In the last
week Of August the exports Of wheat to
Europe were nearly 10, 0o0. 900 bushels, and
the price received was, OF course. a very
high price. Something more than a mill
lion dollars Of extra net profit was prob
ably gained by the people who produced
that wheat as compared with what they
would have received had there been no
war.
1t is not so easy to illustrate the
second class of people who will derive
a direct benefit from the war. There
Is little toy factory In Brooklyn, N
T. which has been a limplng affair for
many years. It was never able to COM
pete successfully with the German pr,,-
ducers of mechanical toys, because the
latter not only appeared to display more
inventive genius in working out new pro-
ducts, but also put their products on
the markets at prices that the American
manufacturer could not meet on account
OF the difference IN the cost Of labor and
the material This manufacturer has on
hand at the present time a considerable
surplus left over from previous unsuocess-
full years, and his plant Is working day
ana night en- orders for The winter trade
He expects to make a fortune in this
one season. and will probably succeed
In doing so II the shipment of European
goods into that market be suspended long
enough.
1t must not be supposed that all lines Of |
imported goods are benefited in the same |
way. Thus the mills which manufacture |
textiles are not supposed to be booking !
very large orders as a result of the tenn |
porary suspension Of shipments from the |
English mills. II Is considered likely, |
in fact that the English shipments will |
be resumed long before American mar |
kets could do much in the way Of break |
Ing into the market for high-grade WOOL |
ems Similarly a great many acids used /
IN manufacturing come from Austria and
other parts of Central Europe. These
acids can be manufactured in the United |
States. and will be, II it should be neces-
sary, but the additional cost of manu-
featuring in this country makes IT I'M
safe for capital TO venture into the busi-
ness because II conditions made the re-
sumption of manufacturing In Europe
possible in the near future, any capital