New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1915-06-05
WORST EFFECTS OF
WAR DISCOUNTED
By America Believe Our Most Sa.
gacious Business Leaders
Especial to the Ierald.)

II.
1t proved quite in line with intelH-
gent and fair-n1inded opinion. The
United States Steel corporation is not
a monopoly, for it's competitors have
been growing faster than itself. The
charge of watered stock is offset by
the large investments in plant made
out of earnings, and the Tennessee
Coal and Iron purchase is not re-
garded as improper. The former
price-fixing policy is criticised, but has
already been abolished, and control
of this feature is referred to the fed
eral trade commission which is now
coming into power. The whole de-
cision in in line with recent decisions
by the supreme court in the celebrat-
ed Standard Oil and Tobacco cases.
The Lusitania incident is now on
the fair road to settlement. The best
evidence is overwhelmingly against
the reports that she was an armed
vessel. The statement that she was
an auxiliary to the British navy is also
untrue for while the admiralty held
an option on the ship, yet as that
option had not been exercised, she
could in no sense be classed as be-
longing to the British navy. Both
legally and actually she was nothing
but peaceful merchantmen acting
fully within recognized law and Gus
tom. When Germany learns the
true facts, as she undoubtedly will
under ambassador Won Bernst orff's re-
cent arrangement with the president,
the way for final adjustment OF this
problem should be comparatively easy.
The Cheerful View.
Another satisfactory development of
the week has been a growing conf
dence that the American business com
1l1unity is determined to take as calm
and cheerful view of the situation
as possible. President Wilson's an
nouncement regarding Mexico, al
though it plainly suggests a posi-
bility of Intervention, caused scarcely
a ripple. A year ago such a mes
sage from the White House would
have severely shocked the whole fl
nancial fabric. Our relations with
Germany for the last few weeks have
been seriously strained and full of
ugly possibilities. Yet the whole
country has maintained a remarkable
degree of calmness and self-restraint.
This was not because the serious pos
lized. But fine confidence has de-
veloped in the American people as a
whole; confidence in our own re-
sources and abilities, also in him who
guides the ship of state, and above
all, confidence in the attitude of jus
tice and humanity which America has
assumed toward the warning nations
of Europe. In keeping with this
growing steadiness of temper, Amer
lean business men are becoming ac-
customed to hard knocks. Many of
our most sagacious business leaders
ebelieve that America has discounted
the worst effects of the war, so far
as concerns ourselves; and that while
shocks are still to be expected because !
of the many remaining uncertainties
their effects will not be severe or
lasting. The call of the German am
bassador upon President Wilson |
showed mutual effort to preserve
preserve pleasant International rela- !
tions: and this comparatively trivial |
incident was sufficient to give the mar
oct quite lift;. indicating quicker
responsiveness to good news than to
bad.
Excess of Exports.
The ten months of foreign trade
exports over imports amounting to
over s851.O00,O0O This violent de-
rangement of our foreign trade prom
Uses to continue until the war is over.
and it is estimated that for the twelve
months of the current fiscal year the
excess of exports will reach about
one billion dollars. Means of adj
iustment are already being actively
discussed To draw large sums of !
gold from Europe is both impossible
and inadvisable under present condi-
tions DANGEROUS imitation here !
might easily follow. "-.
Should We grant credits, for pur-
cl1ases of war supplies, that VIII only
delay final payments. If we import
securities, American railroad shares
will be preferred to any foreign goy-
eminent issues. We have already
loaned considerable sum-about
100000, OO0-to foreign governments,
especially to Canada, France, Argen-
tina, Russia, Switzerland, Norway,
etc. These borrowings might easily
have been enlarged. but American
lenders are not very eager to grant
accomm odations in these directions.
The war is imposing a very serious
strain upon all the beiigerants Of
Europe except England Good au
thorities estimate that the first year
of the war will cost about ST., 5OO,-
100000, or nearly 1900, 10000 per
rnonth. This is a staggering and al
most incomprehensible sum, and
will doubtless impose a very serious
burden upon the resources of some
nations for years to come. If the
weaker ones escape reputation, they
will indeed be fortunate. England
shows the least sign of strain, al
though financing the Allies to a very
{ on sid ra ble extent in addition, to