The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1916-01-05
Great Banking Authority Warns the Country
Against Prosperity Which May Be Fictitious
NO EcoNonfo VALUE HAVE
Progress OF The world VIII Ne slower
Not only During The War But
After Il.

NEW YORK. Ian. THE National
City Bank In its January circular con-
tinues to found the note Of warning re-
garding Fictitious prosperity" which II
STRUCK several weeks ago. II points out
mat the nations OF Europe are wasting
their substance. and their men in the
hIest struggle now going on. and as an
DER which the bciiigerents are laboring
notes that the expenditures Of Great
oa6 a. nave increased from s2.250.00O.-
~ III tne l4rSt year OF the war TO more
man S6.000.000, 200 per annum at the
present time. II adds that. considering
trade and the vast absorptior Of can't
tai, IL ts remarkable ma the affairs OF
me world are going on as we'll as they
After comparing the bank statements
81 the great European nations for 1915.
800, anu 1913 and commenting on the
ssehenuous Quantities Of goods which
the Allies are purchasing IN this coun-
~. Mplch have had much TO
az MIN our suddenly renewed prosperi-
IL is EVIDENT that there must y.
a4nlething fictitious In u prosperity
winch arises from cast expenditures
~hlch have so permanent economic val
ue and which come In part from a .av~u
hausted. A %spendthrift is not enjoying
real prosperity While he H. d~fssinatfng
his inheritance. We know that the coun,
large amounts OF Americaa secnritiies
and are poorer in capital bv having done
~ S9ne OF them have borrowed eN-
poorer for these OBLIGATIONS.
Check On Progress Seen
a'ieeNsf, heaNy. losses may b- SUI
Tered within the %belligerent countries
without buying or selling abroad. There
Us an exhaustton OF merchandise stocks.
unless they are replenished. and there
Is a wearing out. deterioration and ab-
Solescence OF equipment. structures aud
every kind OF property unless repairs
m the savers OF capital and owners OF
property, N are the leaders and or
sahi1ers or industry. pledge their credit
LOT me support OF the Governments. and
!atsr have 10 pay most OF the taxes en-
Salled by me war, the effect VIII be the
OF their advances. and will leave them
with less capital FOR conducting indus
Wy and ior the advancement OF indus
therefore,. the progress OF the world
VIII ne slower, not only during the war
out atter the war. because Of the diver
SION OF capital TO unproductive uses and
the pledge or anticipated income for
years ahead. The greates loss by the
war undoubtedly is In this check uron
normal progress. rather than i'm a refro-
grade movement from the position oc-
Supised by the world when the war be-
Referring 10 the results OF the Euro
rean war IN this country. the circular
avs
The war has effected a revival Of in.
dustry In the United States. and general
opinion the world over holds that this
colhtFy VIII occupy a much stronger po-
sltion relatively in International trade
ana finance hereafter. Certainly 10 WI,
nave bough back "A large share OF the
securities representing American prom
ertles that have been held abroad and
very likely the balance of PAYMENTS on
account OF interest and dividends will he
IN our favor. But whether this signifies
eHin over what our position would
nave been withou the war is "A different
question.
use OF Foreign Capital.
We nave p~rospered In the past by rs.
lhg foreign capital and though there was
adNanlage In having 81 rather than in
returning u. Had we reached the stage
where In the natural order this womb
no longer be truet Even n We had. and
I interest rates had found "a
ieNel IN this country as low as in Eng
land and France. there would not undo =
normal conditions have been such a
wholesale return OF our securitiez our
accumulation Of new capital would have
gene into new undertaking. al home or
obtoad. instead Of making shells and
other materials Of warfare during me
past year we would have made str1r-
tural steel and Implements Of Industry
and while the Immediate profits might
nave been less nobody can doubt that
the wealth producing capacity OF the
world would have been greater in fbe
latter case. and since the aurpiv OF con.
sumahle wealth is always liquid ~ hard
~ can be questioned that in the long
run the people OF this country a. woi
a. other countries would have been bet