New Britain herald., 1916-01-04
ES WARNING OF MISE PROSPERITY
fork Bank Points to EXpendi-
 s With no Economic Value

# Ork, Jan. 4.-The National Bank in it's January circular con- to sound the note of warning Hing fictitious prosperity" which $ck several weeks ago. It points %bt the nations of Europe are %g their substance and their men M great struggle now going on, a an illustration of the enormous #nnder which the belligerents are
 g notes that the expenditures Nat Britain have increased from 100000 in the first year of the $ more than 6,000,000,0 per N at the present time. It adds & Considering the interruption of V industry and trade and the
 bsorption of capital, it is re- $ole that the affairs of the world
 Ing on as well as they do. IF comparing the bank state & of the great European nations # 5, 1914 and 1913 and comment < the tremendous quantities of
 (which the Allies are purchasing 8 country, which purchases have #lch to do with our suddenly re- 8 prosperity, the circular says. $ Something Fictitious.
 8s evident that there must be 8ing fictitious in prosperity, # arises from vast expenditures # have no permanent economic #nd which come in part from a #1p fund which may be eventual < usted. A spendthrift IS not en- a real prosperity while he is dis #g his inheritance. We know E e countries engaged in the war < Il sold large amounts of Ameri-
 &curities and are poorer in cap-
 having done so. Some of them Borrowed extensively in this Fly and are the poorer for these Y ions.
 reoyer, heavy losses may be suf-
 within the belligerent countries
 buying or selling abroad.
 is an exhaustion of merchandise
 unless they are rep1enished l,
 ere is a wearing out, ,deteriora- End obsolescence of equipment, #Ires and every kind of property & repairs and replaceme ents are
 Moreover if the savers of cap Y d owners of property, who are #derS and organizers of industry, 2 their credit for the support of &%xr7 1o +o # ost of the taxes entailed by the %ne effect will be the same as the Nation of a large part of their #es, and will leave them with
 pital for conducting industry @r the advancement of industry 8hey had before.
 # Progress Will Be Slower.
 Serefore the progress of the world M slower not only. during the war Mter the war because of the diver #f capital to unproductive uses @ e pledge of anticipated income Ears ahead. The greatest loss by Ear undoubtedly is in this check #n ormaI progress rather than in #Dssrade movement from the posi- Occupied by the world when the Began.
 &erring to the results of the Eu- %n war in this country, the cir 8says: 8e war has effected a revival of 8ry in the United States and gen. &pinion the world over hold that
 country will occupy a much Fer position relatively in interna- H trade and finance hereafter. ! 8nly it will have bought back a share of the securities represent American properties that have sheld abroad and very likely the 4ce of payments on account of in- and dividends will be in our fa- But whether this signified again 5what our position would have without the war is different son. .-....
 s Use Foreign Capital.
 Se have prospered in the past by a foreign capital and thought was advantage in having ii N than in returning it. Had we Sed the stage where in the natural S this would no longer be true if we had, and if interest rates Found a permanent level in this Try as low as in England and &e. there would not under nor Conditions have been such Q ksale return of our securities Aaccumu1ations of new capita N have gone into new undertak- aat home or abroad. Instead o1 Rng shells and other materials o- Ire during the past year WI h have made structural steel ant Ements of industry, and while the Idiate profits might have beer hobody can doubt that the wealth being capacity of the world would been greater in the latter case since the supply of consumab1t Eh. isg always liquid it hardly car that in the long TUT people of this country as well a! b countries would have beer E off"
 lis pointed out that one of the hon grievances against the labor hs is that they consistently en. pr to restrict the output, actine be mistaken idea that there is
 a limited amount Of work to bt
 and that it is good policy fol
 to make it go as far and pay Iuch in wages as possible. The -v that we shall do better in trade
 Germany and Great Britain ou