Saturday news. (Watertown, S.D.) 19??-19??, 1914-09-03
Gains and Losses
AS Result of War
New Commercial and Industrial Era
May Result From the Great
zn@~~~s-s-----e
Struggle in Europe.

Everywhere there seems TO be q
disposition TO believe that, If properly
taken advantage of, the European wal
is likely to result in a tremendous
| gain TO the commercial interests OF
the United States.
An eminent eastern authority. writ
ing for the Alexander Hamilton in.
stitute. sums up the gains and losses
as follows, as published in the New
York Post.
The Losses.
/, The tendency 30 drain gold from
this country, which must be offset by
accommodating reserves, restricting
credits ana avoiding imitation OF cur,
rency.
=. Closure of European markets TO
American securities and sale at low
prices in This country, resulting IN
checking all permanent financing and
stopping new projects and construc-
ton that have not been financed;
probable permanent diversion from
the United States and Canada of large
amounts of European capital which
would otherwise have come to us.
3. Cutting of certain raw mater
ials (Chiefy chemicals) which are es-
sential in some lines of manufacture;
great reduction in European demand
for raw materials, partly manufac-
tured, and manufactured goods, re
sulting in partial readjustments and
in losses.
4. Increase in he cost of living.
The Possible Profits.
Over against the foregoing possible
losses, the writer puts the possible
profits 10 be based upon the follow
ing:
j. Opportunity TO increase the
prestige and banking connections of
America in international financing.
2. Opportunity to enter South Am
erican and Oriental markets and Sc
cure a larger share of this trade.
8. Sale of foodstuffs and military
supplies al high prices in European
markets, resulting in prosperity for
producers Of these goods and for in
dustries which cater TO these produc-
ers.
AS to Raw Materials.
The outlook for Americas raw ma
t~erials, however, lis not SO bright, ac-
cording to Professor Seligman, poll
teal economist at the Columbia uni
versity. The immediate effects upon
the producers Of what are termed raw
materials and grains, so far as the
war lis concerned. will be somewhat
depressing, for the reason that thus
far We have insufficient means for
transporting our surplus foodatuffs
across the seas, consequently our
producers are likely to meet at least
temporary depression from this cause
However, eventually Il carrying
trade will keep pace with develop
ments and as a result the whole
country will experience temporary
prosperity, as Professor Seligman
puts it.
But, in the opinion of this political
economist, even America will have to
help stand the tremendous loseses
incident to a prolonged war. .
Interior Results.
an the first place" says this al
thority, discussing Interior results,
the prodigious destruction of capital
which is to be expected the world
over will also effect the situation
here. As the European countries
would need much of their future sur
plus TO repair the ravages of the war,
there would be SO much the less to
invest in the United States. Our
tempo of progress will therefore be-
come slower. The relative decrease
in the amount of available capital
will mean a higher rate OF interest.
Specifically. also, this will e a
further fall In the price of securities
ana especially bonds, government as
well az railway and industrial. The
tendency of wages, also, throughout
the world will be downward because
dearer capital means less efficient
production, and less efficient produc-
ton tends to a lowering of wages"