The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1915-05-27

~ vfDENcE Of the way In which
the war has stimulated bust
- ness IN this country Is seen
upon all sides During the past ave
or AK months suc concerns as the
Bethlehem steel corporation. the
American Locomotive Co.. IN West
inahcusp Electric Co. and the Dupont
Pow6er Co. have booked orders Cor
heavy ordnance. small arms nnd am
munition a%ssrcgeting hundreds OF
millions Of dollars. This extraordl-
nary Hood OF business has rendered
necessary the quick construction OF
extensive additions 20 the plants VI
the concerns In question We read.
for example. that the Bridgeport
Arms Co. which is said to have
enough orders on hand 10 keep Il
busy turning out s.00e army rifles a
day for a long time to come. Is erect
ing new works which win consist Of.
az least nine buildings zach 20 be 90
feet By SOC feet in area and five
stories los height. the total to house
no fewer than 10000 additional EN-
ployes This L. more or less typical
Of what other concerns which make
munitions Of war are doing. Millions
upon millions Of dollars Of liquid
capital is being transformed into
nxcd capital. as II the present IN
precedented demand for Instruments
Of war were to last for generations.
SO great Is the demand for the vari-
Gus kinds OF machinery required in
the manufacture Of these things that
even secondhand machines are read
ny disposed OF. II Ii not surprising.
therefore. that all this has given rise
60 a demand for skilled labor which
has resulted In something bordering
upon scarcity In other lines of busi-
ness.
II IN doubtful In the opinion Of the
Boston Commercial Bulletin, II the
receipt OF these enormous war riders
Is going to be an unmixed blessing.
with the termination Of hostilities.
says the Bulletin. " there will be, OF
course, a cesr tion OF the foreign de-
mand for munitions OF war. where
upon thousands OF men will be forced
TO seek employment In other lines.
and millions Of Fixed capital will be
reduced TO idleness. II Is this latter
/ phenomenon which is always the
most conspicuous upEhot Of a pro-
tracted era OF abnormal prosperity
in any line OF business and which
retards economic recovery. Present
and prospective profits blind Invest
ors TO the fact hat the time will
come when they viii have TO write
or a substantial part OF the capital
they are nov investing In additions
TO plant, and IL may well turn out
when the final reckoning Is made
that the balance Is on the wrong
side OF the ledger. II a million dol
lars he invested In a plant which has
10 he permanently shut down and
perhaps strapped after running for
only a year or two, the dividends
paid while the plant was in opera
ton are by no means To be consid-
cred as profits.
This is one eason why the Com
mercial Bulletin has declined to be-
come eiated over tho vigorous uplif'
which the war has impaired TO bust
ness In the United States. We can
not build a permanent edifiee OF
prosperity on the woes Of the res'
OF mankind. and the higher the edi'
lice is reared the severer will be this
collapse WHEN the foundation Is re-
moved. Earring though u be. We De
lIieye that such n note Of warning
cannot be sounded too frequently ol
TOO emphatically. The first inQnir!
which an investor who Is asked q
put his money INTO a manufacturin'
l~enterprise might be expected 70 max
Is whether the demand for the articl
which Il Is proposed 90 manufao'or
Is temporary or permanent Yet 10
day we are witnessing h spectacl
lof heavy investments Of capital d
inc manufacture OF articles the pres
ent abnormal demand Tor which ma
cease within six months Is ther
mot good reason, therefore for vie"
ing the OUTCOME Of the fererish ac
luyity among ammunition fircarm
land ordnance manufacturers wit
growing concern