The Washington times., 1915-08-01

Almost since the very inauguration
of the great European war speculation
has run rife as to the effect which the
struggle was having both upon COM
mercial and financial conditions In the
United States and the several nations
directly involved In the conflict.
a year has now been concluded since
the first pail Of the war clouds settled
over this country. the appearance OF
which were marked by the closing OF
the New York Stock Exchange on July
80 1914 The elapsed period has FURNISH
ed an opportunity for the measuring
by approximation OF the results upon
world trade.
Exclusive Of Italy, which only came
into the war at the end OF the tenth
north, the war loans OF the combatants.
repre- senting approximately the govern
mental expenditures, have aggregated
about SIS, $50, 900 .OOo The total indebted
ness Of these countries at the begin
ning OF the war approximsted $780,
0OO, O0O, a large part OF which was rep
resented In investments In railways ana
revenue producing utilities. thus indl-
eating that the debt which must be car
ried py taxation has been more than
doubled.
BY the war international trade has
been interrupted and largely dlsorGan-
ICED. The German merchant heets. sec.
ond largest or the world, are out o.
commission. and aireaoy ABOUT t.Uu' @
tons OF shipping have been destroyed.
10 this 2 per cent Of the worlds ton,
mage must be added the loss entalleo
by internment and the commander OF
ships for war service, which brings the
total loss to commercial service up 70
Is per cent. Time lost through detours
made necessary by mined fie!os ana war
zones reduces the efficiency to 10 per
can't .,,
This generalization Of international.
trade, coupled with the withdrawal or
men from industry. has sent the costs
of production ana living expenses soar.
Ing. The London Statist shows mat
commodity .rices in London for food-
41.6 pei cent higher than IN June, 1919.
while materials for manufacture aver
aged PAT higher.
great war debts taxes in the warning
Countries have been increased. and are
ever becoming more burdensome.
While these conditions have been ere
United States serious problems which
continue to give concern TO this nation
and its bankers. Those presented by
the accruing balances IN the foreisn
imports in 0 in June by Sl57.oooooo despite
the fact that the movement of grain
and cotton were at a low ebb. At the
end of the fiscal year. June 30. the net
credit balance on merchandise account
was 81 ,bs4 ,i22. 1872. with exports of G,.Ss.-
643, ,432 and imports of l,674. 22O. I4O. The
exports were SAGA 900 COO above the pre-
vious years record. and imports slo.-
700 000 below.
When the war broke the United States
found itself confronted with serious
lack Of merchantmen to transport the
the wharves of it's ports. To meet the
8 tuation Congress enacted a bill. Au-
gust Is. 1914. admitting foreisn-built
vessels to American registry. Under
that act up to July "a, $50 foreign built
vessels with 52s. .4oS gross tons. had taken
The first direct effects Of the war
were felt upon the New York Stock Ex-
change. the leading security market of
the Western Hemisphere. When the
fact that war could not be avoided, and
it's extent was indicated prices began
to crumble In that market. and on the
morning OF Friday. July 81. the board OF
governors announced the closing OF the
exchange.
On December 8 tho exchange was re-
opened under restricted trading. Then
came the reports Of vast war orders.
! and the soaring Of grain prices which
led to the resumption Of unrestricted
| trading and marked the launching of
| tho boom which has carried many Issues
| to phenomenal levels. The principal
effect Of the war upon the stock ex-
change is reflected In the changes which
have been recorded by the ordnance and
Industrial stocks whose companies have
been accredited with large orders for
munitions.