Evening star., 1915-09-13
War Orders a Help.

spots in the business world. The enor-
nous volume of war orders, covering
munitions and supplies of various
kinds required by the belligerent ma
tions of Europe, has stimulated activity
among certain lines of manufacturing
to the extent that many plants are
operating a percentage of capacity that
a year ago seemed practically impos-
sible.
Naturally this has given fresh i'm
petus to the steel industry. and in time.
should this activity continue, must find
It's reflection in increased railway traf-
i,c- These two may be justly considered
tiic basic industries Of the country. and
\. lille il might be presuminS too much
L. = Ie2ard this increased activity based
war orders as indicative of a great
I.aVe of prosperity. yet it is contribu-
tag much in strengthening our inter
IL. tlonal financial position by piling up
credits abroad and fortifying this coun-
~ an measure, at least, against the
disturbing effects OF the economic re-
adjustment that ultimately must be ex-
perienced as a result of the enormous
destruction of property and life abroad
and the consequent credit contraction.
So long as the credit situation abroad
does not become SO strained as to make
il practically impossible for our manu-
facturers and bankers to accept the
promises to pay by the European ma
tions, the volume of credit does not
exceed American capital Indebtedness to
Europe. this situation. according to the
view of most bankers and manufac-
turers, may be considered satisfactory.
This statement of course is apart from
the speculation in war order stocks
and relates to the material things.
one noticeable feature of the cor
respondence received, however, is the
absence of anything that can he in
terpreted as a prediction Of what is
to come. >houid the war be prolonged.
o. what is to follow a restoration of
peace. In the absence of precedent in
financial history concerning such war
as that going on in Europe, bankers
and business men seem to be bent on
proceeding with caution. and therein
lies the strength of the American posi-
ton. Yet there is in evidence much
OF the courage and spirit that has
manifested itself and dominated in
o:ht.- crises affecting this country
Caution in Evidence.
american captains of finance and in
d;:stry are weighing well their plans for
the future. with due regard for the re-
sourcefulness of the country and the
ability Of American financieIs TO meet
eAigencies they arise, no matter how
disturbing or threatening. The fact that
the acute international crisis of a year
ago was met and surrnounted with less at
tendant disaster than was experienced in
the financial disturbance OF 1907, and
other equally acute situations doubtless
stimulates the hope in the conservative
American business mind, that no metter
what may come out of the war. this coun-
try will meet and rise above it as she
met and rose above the worlds interna-
t!onal exchange dislocation in August and
September OF last year.
There IS evidence in the adyices to
this bank OF notable improvement in
industrial activity in some lines of in :
dustry, but the general business stu
alton continues to be spotted. The
most notable Improvement. however, is
in the steel and iron industry, and
such improvement, under ordinary cir
cumstances, should presage better gen.
oral conditions. Trade conditions in
Iron and steel, according to men Of
wide experience in those industries. are