Valdez daily prospector., 1916-10-24
BUSINESS SITUATION REVIEWED.

dHCG Ol dCItNS DuSthCoo It is believed that. in those countries where general trade is booming at present, business will not only remain active but will continue to expand. It is daily reaching new high ground. Figures showing the volume of in dustry are unprecedented. It is inn possible to measure the future by anything in the past, so far as com- mercial activity is concerned. In the circumstances one would think that great caution would be exercised in all transactions. On the contrary, more confidence is manifested by bus mess men generally, than has been the case before in number of years. Merchants and manufacturers seem to have reached the conclusion that as long as the war lasts there will be an unceasing demand for iron, steel, copper, leather goods, automobiles, foodstuffs and such other things as are being supplied by neutral coun- tries to the belligerents, to say noth- ing of the constantly growing domes- tic demands for these products in the countries producing them. There are no indications of cessation of hos tilities, but the opinion obtains that when peace does come it will come quickly and with very little warning. What will happen then is matter of conjecture; but it is noted that there is, just now, less discussion, in busi- ness circles; regarding the probable end of the war, than there was some time ago. Consequently business ia moving ahead as if it had complete ly adjusted itself to war conditions.
 The most disturbing development in the commercial world is the con tinually climbing prices of commodi- ties. It is conservatively estimated that the average of commodity prices is fully 35 per cent higher than two years ago. Some people are inclined to make the figure even larger. It is certain that rates are still ascending and without any probability of an early check.
 Various remedies have been pro- posed to meet the situation, but none has been deemed satisfactory. Plac- ing an embargo on foodstuff ship ments from the United States would probably make prices tumble but !t would prove disastrous to many innO- cent people in other lands, and would be reactionary upon business in the United States. This proposition has been discussed in some quarters, but has not met with general favor. The conviction is growing that the na- tions of the world are interdependent. There can be no genuine prosperity in one quarter of the earth that is not shared by the rest of the world. Con- sequently, there cannot be hard times and disaster in one part of the world in which the whole people do not to some extent participate.
 The prosperity now enjoyed by the neutral countries is more or less arti- ficial. It is, nevertheless, a good thing that good business is being experience ed by them, for it will the better en- able them to supply the needs of the war-ridden countries, both new and after the war has ceasec The stream of gold flowing into the United States from other lands is unceasing and il seems that the United States is very largely profiting by the war. To a certain extent this is true.
 When, however, the war is over, and reconstruction throughout Eu- rope begins, the gold currert will doubtless turn toward Europe. The accumulation of wealth in the Uni ted States then will be of vast bene- fit in the European rehabilitation pro- gram. It may mean lower commod- ity prices and less industrial activity in the neutral countries, but in the end, the evening-up process will be beneficial to all-Christian Science Monitor.