The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-18
Costtrned from rum Page.

10 left for all the other running ex-
penscs OF the Government.
A single dreadnought. such as the one
that England recently launched. costs
nearly $15.O0O,000 equipped and about
81 900 900 a year to maintain. In fact.
n II inch gun is said TO cost over
$4,000 and shots therefrom about
81 900 a crack. And yet the race
continues, and for each dreadnought
which England builds Germany, France.
the United States arc the rest of the
nations think that they must build one
likewise.
This OF course If a tremendous drain
on business, and especially on the money
market. There is only a limited amount
Of capital, and what Is tied up In bat
tleships, Notifications and armies Is not
available for building factories and
handling legitimate commerce. Hence
coupled with the race for automobiles 1
add the race for armaments-the two
big As-as important causes OF present
world conditions.
Now let us return to conditions in the
different nations. As We have consid-
cred above the three nations In the En-
tente. let us consider the three nations
in the Triple Alliance. The most promi-
nent of these Is Germany.
Germany.
For the last several years business in
Germany has been increasing by leaps
and bounds, constantly establishing new
records. This however. has led TO an un-
wholesome fundamental position. and a
thorough relaxation IL now absolutely
necessary before business is again on a
sound basis.
The silk industry Is quiet now and
prices of materials are declining. The
textile industry is in a state Of depres-
sion. and the latest reports from the
woolen trade show that mills are run-
ming on a restricted scale Of production
Buyers are acting very cautiously and
are purchasing only from hand to mouth
They are demanding low prices and get
ting them.
The dissolution of the German cemen,
syndicate caused a fall in the price al
cement and this industry has quieted
down. The leading iron, steel and Goa
companies also report considerable
decrease in earnings, and In some case.
the payment of dividends may be sus.
pended. The outlook for winter cereals
Is fairly good, although this can hard,
outweigh the unfavorable industrial
situation and business should continue
To decline.
Stock prices, while showing substan
tial decline from the high OF 1912. ar,
hardly at level which is attractive. ant
it Is probable that they will declin,
somewhat further in dscounting tn,
trade recession. The average price o
ten representative securities is now 20.
per cent. compared with 2s2 per cent
m September. 1912. and 1872 per cent. IL
December, 1902.
Austria.
The case of Austria Hungary is some.
what different from the other European
countries. 1t has already experienced
to "A great extent a commercial ant
financial crisis which was precipitatec
last year by the Balkan war. Com
mercial conditions In Bulgaria offer
have a great influence on Austria, a,
this country is Austrias leading market
In the latter country the great in
dustres have been depressed for a Ions
time. This Is especially noticeable il
the iron and steel trades, which car
generally be taken as the barometer %
the economic situation. Again. tn
building trade Is depressed Throughout
the country. and this applies TO all in
dustries connected Herewith. In man!
cases buildings have been left half com
peted for the want of available funds.
Tie continued demand in militar!
circles for ornaments ana war loan
and more men to serve in the army ha
resulted in the emigration of an un
paraleled number Of men who woul,
I -.
been required TO serve in the army.
Stock prices are depressed and Their
is practically no business being done OF
the Boerse. The average price Of Aus
trian securities is now about us pc
cent, compared with III per cent i
December, 1912. and 1i7 per cent. i
October, 1885,
Conditions in Italy are somewha
similar To those in Austria Hungar,
Business, however, has been more thor
oughly llquidated, as Italy has been !
more or less of state of depression f.
the last three years. With relaXatio
Of the worldwide monetary stringency
feel that trade should begin to show
substantial Improvement
In this country. however, the politicl
situation. as well AS that of labor,
continually in Il state OF ferment, an
II Is question whether labor general
Is as we'll liquidated as most OF tn
mercantile lines. IL must not be fol
gotten. however. that Italy has bee
blessed by bountiful crops. and in tn
nation, which Is essentially an agrlcu
tural country. this means "A large ir
crease in new wealth and Is badl
needed in Italy. Again, savings bank