Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1916-05-31
PROSPERITY AND THE WAR.

1t is the habit of some politicians
TO say that but for the war this
country and its industries would be
PROSTATE. 1t is undeniably true that
war has given tremendous stimulus
to certain lines of production, no.
tably the manufacture OF war NUM-
tons. Bnt this is an endeavor wldcfl
engages only a relatively few men.
The industries OF Iowa are going fun
blast yet there is only p single mu-
|nitions contract being filled IN the
state and only two or three other
contracts having relation to war. The
war does not explain the capacity
output Of 9Iowa's factories any more
than it explains the beehive industry
Of the east. }ltl3 \ tt
The truth is, as all who deal with
fundamentals know, that the country
is prosperous because it has an
abundance of money, to be procured
on easy terms. Whatever else is to
be said about democratic theories of
money, it is admitted that the guam
titive theory Of money is sound-the
more money in circulation the more
the prosperity. With the money
supply secure, through the operation
of the currency law, against sudden
contractions and Invitations, and the
crisis produced by paralysis of the
European system Of credit safely
passed, there is no reason to doubt
that the nation is in for an unbroken
era Of prosperity.
The opinion that this prosperity is
in no wise contingent upon the con-
tinuance of war is not furthered by
partisan zeal. Indeed, the identical
thought is voiced repeatedly in fl
nancial quarters. Here, for instance,
is a paragraph from letter On the
investment situation from the very
reputable firm of Knauth, Nachod &
Kuhne:
"The feeling is growing that
American prosperity will survive the
vicissitudes of war and the uncer-
tainties of the presidential campaign.
The country is less radical than it
was. The average wage Garner is in
better financial position than he
ever has been. Business is active
and most lines are showing good
gains over last year. The imp ortant
Industries are no longer dependent
upon war orders as basis Of pros
perity. Domestic inquiry is enlarging
to such an extent as to offset the
losses in foreign orders. Specula-
ton is on the wane. The average
American business man is taking as
few risks as he can. Some Of the
savings banks are showing large
gains in deposits. The hardships OF
the war abroad and tension over the
controversy between the American
and the German governments had a
SOLDERING effect upon. all classes OF
people. The consequence is that al.
though the country is doing highly
prosperous business and some indus
tries are showing record earnings,
people are living cautiously and cor
porations are conducting their bust
ness on a high scale Of efficiency.
The United States Steel corporation
has today the largest untitled order
tonnage that it ever had and it's
earnings are far in excess of those
ever shown before"
There is only one thing which can
interfere with speedy realization on
cur opportunities, and that is a cam
paign designed to promote suspicion
ana distrust, which we are sure to
have as a part Of the presidential
campaign. 1t is fortunate for bust
ness that the fall election can't be
put off a few years. Yet if business
is wise it will ignore the croakings OF
politicians and make hay while the
sun shines, accepting the tcdays as
criterions Of the tomorrows.-Louls
Murphey, in Des Moinss Register and
Leader.