Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-05-04
THE COST OF EUROPE'S WAR
Is the Economic Waste of War; FalIacy?-The Answer
Can Be Obtained by Mixing Sense
With Optimism.

THE prophecy was made in the early
L weeks of the present strife that it's
magnitude and its mighty destructive
ness would speedily bring the fighting
nations, or at least some of them, to
the end OF their economic ropes, and
that they would be forced, accordingly,
to an early peace. Thus far the course
of events has not given the strongest
eral governments have never found 1t
easier to raise money. In Germany CO.
operative credit had been developed be-
fore the war to such a point that 1t
constituted one of the chief distinctions
of German efficiency, and it has since
been utilized with startling success by
a government whose second war loan
reached a total of s2,225, 100000, the
worlds record.
1t is quite as remarkable a fact that
the quantity of money lying idle in
negotiate huge loans in London with
out disturbing rates. OF conditions in
England a well-known financial writer
says: "The shipbuildlng industry was
never so prosperous, there is relatively
little unemployment In London, the
wooden mills are working double time,
the iron works are busy, and the de-
mand for coal exceeds the output of
the mines" The same writer adds.
and his belief seems to be we'll based
on information which has recently be-
come public through several reliable
sources that 'even IN Germany busl-
ness conditions in general are good
Capital and Gumption
AS for the neutral countries, the
United States has begun a new era Of
prosperity such as It has never known
before, and in considering the late hesi-
tation and calamity bowling we have
to consider also the characteristics OF
domestic politics. Argentina is worse
off. Argentina is tanning a wilderness,
as America had to do, and is stlll eX-
ceedingly dependent on foreign capital
Her situation is by no means inevita-
bly, hopeless, for there is plenty OF
loose capital for all her needs II only
Its owners can be inoculated with suffi-
cient gumption to lend her assistance.
American gumption, perhaps, would be
Just as efficacious in Argentina as the
end of the European war. If capital
is liquid in Europe II looks like inn
a.. IL, A
TO blame the war for whatever he fails
to do. But there are certain psychology
ical elements in the situation which
are plain as a pikestafr.
History contains some interesting
suggestions concerning the relation of
war and business. It was predicted
that the Napoleonio wars would leave
Europe bankrupt. but Europe. while
paying off its debts. grew rich so fast
that in Macaulay's words, ''the growth
could almost be discerned by the eye"
After the Franco Prussian War, the
world believed that France would be
overwhelmed by the immense indem-
nifty imposed upon the nation. but the
country SO easily paid on ana so rap
idly advanced in prosperity that only
the strategy Of Emperor William /,
who on this occasion accomplished Bis
marcl1s severest defeat, prevented the
Iron Chancellor from sending his
armies forth again to crush completely
the fortunes or France. Our clvil War
and the Spanish American War were
each followed IN this country by an
almost miraculous business expansion.
It is dangerously easy 20 rest argu-
msnts on historical chronology, ana
one q those critics Of the theory that