The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-17
in the cost OF LIVING
PROFIT.

FhOFIT.
"i-opportuni,y to ircreas. tho prestige
sud banking connections Of America In in.
ternational financing
Opportunity 20 enter South American
and Oriental markets and secure a larger
.hsr. OF this trade.
"5-Sa,e Of foodsturs and military SUD.
plies at high prices in European markets.
resulting in prosperity for producers of
these goods and for Industries which cater
to these producers"
Speaking OF the opportunities OF Amer
lean bankers In the situation which has
been presented by the war Dean johnson
says:
New York is to-day the financial CAPT.
tai OF the world.
up to the outbreak OF the war the
currents OF international trade flowed
through London. and the London bill OF
exchange was the accepted standard Of
payment the world over But the ter
rible finger Of war has been laid upon tho
imposing financial structures OF Europe
and they have shrivelled under its touch
1T Is likely that the bankers 81 South
America and the Orient will increase their
deposits in New York--the only sate haven
for the moment--and that the New York
bill OF exchange will Temporarily take the
place OF the London bill. Wise and con-
certed action on the part OF the bankers
OF the United States and on the part OF
tho national Government will enable the
New York bankers TO meet all tho de-
mands of international commerce and to
t,ta
Of European nations for American gold
cannot safely be met but the demands
OF commerce outside the stricken territory
should b. met"
Vast Readjustments,
New York bankers have no desire to
take advantage OF the difficulties OF their
English brethren. and In the long run Il
Is to be hoped that London will regain
her financial strength and prestige. Yet
there Is likely to be a residue OF perma-
nent gain for New York bankers and for
American exporters. Enduring financial
and trade relations with many countries
now almost closed to American products
will be established.
For the present, however, We are con-
fronted by a closed market for securities,
with no definite prospect of its being re-
opened. Broadly speaking, only hand to
mouth financing In possible. New prof.
Gets therefore or any other capital ex-
penditures are out OF the question. Con-
struction that has already been financed
may be carried on and there may be iso-
lated cases OF new financing. but they
will he exceptional"
Dean Johnson saws that II the war had
broken out In a period OF expansion in
stead OF toward the close OF period OF
liquidation it's effects would have been
far worse
zng our industries, reducing losses to
a minimum and taking advantage OF new
opportunities,
THE industry that seems most likely
10 prosper Is agriculture The battling
nations will demand wheat. -four live
stock. dressed meat and canned goods at
any price"
THE general expectation Is that the
war will he short, but there IL no clear
cut line OF reasoning that leads TO that
conclusion. Assuming that the German
Empire IL well stocked with provisions
and Is able TO raise Its own food supplies
for next year behind protected frontiers
and assuming that England and France
are able TO command the seas and bring In
foodsturs from abroad, tho war may he
indefinitely prolonged.
Each man must analyzC his own bust
ness at once, make M his mind whether
nc will garner benefits or suffer rcverses
ana take steps 10 meet the situation"
Dean johnson evidently believes that
Germany has long been anticipating and
preparing for war calling attention In his
article 10 the fact that the gold holdings
OF the Imperial Bank OF Germany in
creased from sl9A 900 900 AT the beginning
Of 1918 TO $685., 5000 on July II, 1914.
Following the lead Of Germany" he
says, 9TH" banks ~ France and Russia
also piled up vast stocks OF gold The
extraordinary pressure for gold on the
part or the great governmental banks Of
Europe, beginning carly IN 1918, Is re-
gard"d as highly Significant by those who
believe that ono of the world Powers dc.
iiberstely planned and promoted this
war"