The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-31
GENERAL WAR HEAVY
BLOW TO US. TRADE
Business Men Fear StagnatiOn
Of Industry and Big Jump
I'm Cost Of Living.
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Business men OF the United States con-
template great European war with
grave forebodings.
Representatives OF 2 dozen branches OF
trade seen yesterday expressed the opinion
that the effect OF n great conflict Will
be manifest here in retarded activities
and a much higher cost OF living.
Az expressed by one man. the destruc-
ton by war OF immense capital would
mean that young country like the
United States would be shut on from the
assistance it receives normally from
abroad Fear OF a general war finds us
compelled 10 buy back our own securities
which Europe Is forced to sell. and while
We may pay in wheat and other staples
the vast sums thus withdrawn will leave
all other mediums of trade unsupported.
Prices abroad will fix local prices, II
was said. Wheat. corn, beef products,
packing products generally, cloth suitable
for armies and other supplies sugar,
medicines will be higher in price because
OF increased demand. but they will be
higher in thu United States also Cotton
coffee, dry goods. iron and steel will
have vastly Curtailed market, which Will
directly affect conditions in This country
The belief Is prevalent everywhere that
despite the ominous outlook there Will be
no general European war 1t was argued
that Its consequences would be so de-
moralzing TO the world At large. as well
as 10 the countries actively engaged that
after the usual diplomatic huffing true
, wisdom will manifest itself and financial
catastrophe be averted SO far as the
conflict between Austria and Servia alone
was concerned all agreed that Its effect
would not he perceptible.
ut is almost unbelievable that there
can be a great European war in this day.
said Claus Spreckes, president Of the
Federal Sugar Refining Company. The
consequences would he so serious. not only
! to the participants but to all the world.
that 1t would demoralze all business
everywhere and We would be long In re-
covering from H.
The effect OF such a war on sugar would
he TO send sugar prices soaring. I am
not now considorins merely a local war
between Servia and Austria, but a gen
eral European affair
Ninety per cent. OF the sugar beet used
/ by Europe for the manufacture OF its
sugar comes from the territory which
would be the scene OF strife. The harvesting
Of this crop takes place In the latter
! part OF September and Indications are that
heavy lighting would begin about that
| time Then the men needed to harvest
the crops would he In the army. They
would fight over the territory where In
ordinary times they would harvest, for
| the battles OF this war would not be
/ fought In the cities.
: The sugar beet CROP Of Europe would
be practically annhilated and that would
: cause 4 tremendous shortage to be made
up by Cuba, Java and the United States
II would result practically In sugar
-.
90 up very high not only abroad but "a
the consumers In the United States Vir.
tually a 90 per cent. production would
have to supply a 100 per cent consump.
ton"
Edward Cudahy Of Chicago. presiden
of the packing company OF that name
said
while the present supply OF cattl
IL adequate to meet any normal demands
in the event OF general European war
our foreign markets would be democrat
lied. American meat packers would hav
to pay abnormal prices for cattle. ant
necessarily prices for meat would ad
vance"
Charles Robe of Robe BROTHERS. pro
vision packers and lard refincrs said
ANY benefit "A few lines of bushes
may receive from great European wa
will he more than outwcghed by IN
general damage to business. II will b.
most unfortunate for the United state
II war does come. but | have not los
hope that wisdom will prevail and
general conflict will be averted.
THE direct effect of European wa
will be to raise the prices of stapl
articles of food not only for export bu
for home consumption. In meats tn
United states has become an importe
from Argentina and we must pay tn
price, depending upon the ability o
ocean carriers to bring II to us or :
take il abroad That VII be seriou
problem, for II is n question whether o
not the very few American ships woul
he able to carry supplies abroad, par
tlcuarly II they are regarded as con
trabrand Of war. and It is further ques
; ton what other nation will have tn
mower to do so Whatever is done III
United States will pay the price Europ
must pay, less the carrying charges"
George A. Post. president OF the Ran
, way Business Association. the nationa
I organization OF manufacturing. mercantil
and engineering concerns dealing wit
I the railroads, said
, Carrying materials 70 the seaboard "a
4 export to beligerents may bring Amer
can railroads some revenue and to som
degree such material may be among tn