The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1915-11-19
Business CONDITIONS
ARE NOW excellent
BOTH FOREIGN AND DOMESTIC
DEMANDS ARE VERY
HEAVY.

New York, November l4.-While the
greatest trade activity is still being
seen In orders from abroad, domestic
conditions appear to have developed
an Independent strength which argues
well for the general prosperity Of the
country. Business enterprise has lost
! its timldity and expansion is in pro-
gress. Some fears have been expressed
lest a change in political canditions
abroad might bring about some reac-
ton but, as a rule. optimism prevails
on every side.
In all discussions relating to differ
ent branches OF trade, whether do
mestic or external, the dominant factor
is always the great conflict abroad. At
the outset the principal things that
claimed attention were those growing
out Of restricted imports and OF the
ability to produce and send across the
seas what the belligerents required.
Recently IL has become necessary to
note more particularly the reflex ac-
tion on home conditions of one sided
trade, accompanied by feverish activ-
ity in number OF large Industries, the
establishment OF new ones to make
things hitherto brought in from abroad
and a plethora OF bank resources far
exceeding all possible business require
ments.
One OF the first effects OF the new
conditions has been to overcome the
economical tendencies which had al
most become fixed since the 1907 panic.
The greater employment OF labor at
higher wages and the large profits
I,,t 10
helped to give a remarkable impetus
to retail buying which, In turn. has
extended TO the primary markets. The
increase in demand and broadening OF
purchases have had their natural ef-
feet in raising prices in things to wear
and things to eat In such manner
that every one in this country has felt
the effects Of a struggle thousands of
miles away
Lessons in War Demand.
II Is generally recognized that the
manufacturing capacity OF the indus
trial plants in this country is much in
excess Of the needs OF the population.
The excess varies in different lines, but
the general average has been put at
about 25 per cent, This is one of the
reasons why plants are shut down or
run on reduced time at different per-
iods II an outlet in the foreign field
could be provided for the excess pro-
duction under normal conditions, such
as the prevalence OF the war now af-
fords, the effects would be great in
divers directions
The present experiences show what
has been demonstrated before, over
and over again, that economy and ef-
nciency are both furthered when man
plants are run continuous
ly and at capacity Unit overhead
charges are lessened in such case.
and the labor of men becomes more
productive. II is also possible to keep
intact the most efficient forms OF or
ganizatfon. as well as to purchase sup
plies advantageously for future needs
With the. present productive capacity
of the domestic plants II is absolutely
necessary that foreign trade lie had in
order to find market for the surplus
In order that those plants shall run at
their maximum of economy.
IL this is accomplished IL will mean
that American manufactured products,
whether they be of the metals or tex
tiles, will be produced much cheaper,
and this ought to result in their being
able to meet better any competition
abroad with similar products from for
eign countries BY looping OFF certain
trade evils which have been great
handicap to the profitable operation OF
many kinds OF mills and factories, and |
by an intelligent pursuit of foreign |
trade, II may yet be discovered that
necessary costs OF production here are
little. II any. in excess of those which !
have prevailed abroad. and may prove
to be less than those which must be |
the case after the war in the countries
OF the belligerents.