The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1915-06-11
Our Share In the War
Y/HETlI it he peace orwar fit the United
v States, and eaeh days delayis having a

escape from the far2reaching effects Of the un-
paraeled slaughter and destruction across the
Atlantic. Such is the opinion Of Henry Clews,
who, writing on May u, sums up the international
situation as it stands and as he believes it will
stand. Escape from the injurious effects of Eu-
ropes Armageddon is impossible" he writes.
whether we like to make the admission or not,
American business affairs are dominated by this
terrible cataclysm more than by any other single
influence. While the struggle is on we will bene-
fit in some respects as long as we maintain our
position Of neutrality and isolation. BY so doing,
we enabled to supply many OF the necessities
which the belligerents must have but cannot them
selves produce, except in insufficient quantities
The manufacture of implements of destruction on
such vast scale as is now going on in this coun-j
try is depressing and not inspiring. Nevertheless,
war materials must be had ; and the more readily
they are supplied ting quicker will the contestants
either come to their senses be exhausted. The
output of military supplies, particularly ammuni-
ton, in the United States is simply appalingi and
must run into the hundreds of millions some est9
mates being as high as $500O00OOO, although
many of the published amounts undoubtedly
exaggerated by duplication. In consequence of
these orders exports continue, to expand trem-
endously, and shipments on account of recent or
ders will be much heavier in the summer and au-
tumn than now. Our imports meantime have suf-
fered material contraction, so that one of our
leading government officials has been led to state
that the current fiscal year will show excess
of about a billion dollars in exports. This is
fabulous balance, and is only one of numerous
evidences of serious arrangement in the worlds
international trade which must now be still fur
Their disturbed by entrance of Italy into the con-
test Such huge balance can be adjusted in sew
eral ways, by gold imports, by merchandise i'm
ports by security imports or by granting credits
until any or all of these means of settlement are
available. Gold we do not need our present sup
ply being $l89OOOOOOO, which is undesirably
large. Merchandise imports are and will be in
evitably restrained by stoppage of production
abroad. Security imports not probable on
large scale under present conditions. The grant
ing of credits to foreign nations has already been
very extensive and promises to continue indef
initely
Thus it happens, that the war has created in
ternational banking movements of supreme inter
est, which intelligent opinion as to the future
OF business i'll this country afford to ignore.
This war, which will cost Europe untold billions,
not to speak of incacuable human misery, is being
principally financed by England, whose financial
resources are proving vastly beyond all possible
expectation. In addition to her own huge OUTLAWS,
she has made enormous loans to the Allies France,
Russia and Belgium, without yet showing the
least sign of undue strain. In all probability she
has loaned big sums to Italy, and Rumania if she
enters the war may soon be asking for needed
loans which Germany has refused London
change is selling at a very much smaller discount
than that of any other financial center in Europe.
As the end OF the struggle is not yet in sight,
further expenditures this same vast scale are
inevitable; and for months to come England's vast
financial abilities will be wholly absorbed in war
finance London will thus have little to spare fo
ordinary investments, and the world will be com
PEELED to turn t. New York as the only important
financial center free to finance war or not at its
pleasure. As a matter of fact we are already
giving the bcligercns very material financial aid.
Important credits have been granted to the Allies
much If not all of which is being expended here
lin munitions of war. The aid thus extended by
the United States to Europe emphasizes our grow
ing independence and strength in international
finance. Such aid, needless to say, will be a very
important factor in fastening end of the war.
This is its chief justification from either moral
financial point of view.
"Our new banking system not only increases
our financial resources and enables us to meet
emergencies at home, but it places on the high
plane in international finance to which we are
now fully entitled 1t is not only steadying and
equalizing money rates at home, but it is already
facilitating the entrance of the American banker
into foreign enterprises, the fruit of which in due
season will be large growth in foreign orders
for American producers When the war is over,
our opportunity will be more apparent than now.
AS people we have not yet realized the great OPP
portunties which this awful struggle will open to
America. In reality facing a era
Some OF the greatest nations of the world will
have to endure a considerable period of economic
exhaustion. When peace comes, Europe will be
obliged to look outside for supplies and nowhere
Al l. l.