New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-01-04
TRADE REVIVAL
CREDITED TO WAR
City Bank Sees Stronger
World Position for
United States.
WARNS OF PERIL
WHEN CONFLICT ENDS
Vast Expenditures, Which Have
No Permanent Economic Value,
Cause Fictitious Prosperity.

with the revival OF industry that has
been largely due TO the demands arts
Ing from the European war, the Ma
tional City Bank. in It's January let
ter. predicts that this country VIII oc-
cuny much stronger position relative
" in international trade and hnancc
A warning is issued. however against
the fictitious prosperity which arises
from, vast expenditures which have no
permanent economic value. Industry
everywhere after the war, u Is empnA-
sized. will have 20 come down 10 the
normal basis. where goods are pro
duced for sale In the market ana
wages necessarily bear a relation 10
the selling value OF the goods. me
circular says. I'M part;
THE war has effected revival or
industry I'm the United States, and gen
eraI opinion the world over holds that
this country will occupy much strong,
er position relatively IN international
trade and finance hereafter. Certainly
il will have bought back n large share
of the securities representing Amer
can properties that have been held
abroad, and very likely the balance oil
PAYMENTS on account of interest ana
dividends will be in our favor but
whether this signifies a gain over what
our position would have been without
the war is n different question.
Aided by Foreign Capital.
I've have prospered in the past by
using foreign capital, and thought there
was advantage in having IT rather IMAM
i'm returning 1t. Had we reached ine
stage where in the natural order TINS
ha J.
had. and if interest rates had found n
nermanent level in this country as low
as i'm England and France, there would
not. under normal conditions. have ocen
such q wholesale return OF our securl-
ties. Our accumulations of new capl-
tai would have gone into new under
takings al home or abroad. instead OF
making shells and other materials o.
warfare during the last year, we VOuId
have made structural steel and lmple-
mepts of industry. and while the I'M
mediate profits might have been less
nobody can doubt that the Wealtn-pro-
ducing capacity of the world would
have been greater in tho latter case
and since the supply Of consumaDle
wealth is always liquid, n hardly can
be questioned that i'm the long run the
people of this country, as well as otneI
countries. would have been better of.
cone of the common grievances
against the labor organizations Is tnat
thew persistcntly endeayor TO restrict
the output, acting upon the mistaken
idea that there is only limited amount
of work 10 be done and that ~ ls good
policy for them to make 1t go az far
and pay as much in wages as possible
The theory that We viii do better IN
trade with Great Britain and Germany
out of the competition is based upon
SIMILAR error upon the supposltion
that there is only limited amount OF
work 10 be done in the world. and only
q limited amount of trade 20 be had;
whereas there is practically no limit 70
the amount Of work TO be done or 10
the amount Of wealth that may be
created.
Development May BE Checked.
"All trade in the last analysis. con
sists of an exchange Of commodities,
and the greater country production
the greater its purchasing power Will
be Great Britain and Germany have
helped to create the trade they have