Evening star., 1916-03-19
Explains Large Increase.

onIy DN tne use Oh SupeTIdtiNeS
existing commercial and industrial con-
ditions be adequately described" says
Dun's Weekly Review. This comment
on the situation in the United States
gives some explanation of the large in
crease over the original estimate of
the prospective income tax.
1t seems fair to consider that a read
justment of conditions has occurred.
Immediately following the beginning of
the war in Europe there was a general
prostration of all industries. Soon those
industries which could serve the needs
of the belligerent nations began to
find themselves overwhelmed with or
ders that meant extension of capacity
and great earnings.
Then this prosperity of certain in
du stries resulted in an extension of
prosperity to dormant lines. the gem
c-al trade of the country. which then
the earnings from abroad.
Benefit to Wage Farmers.
wage-earners in busy factories found
themselves with cash to buy necessi-
ties and luxuries, and there was a gen.
eral revival. it is claimed. extending
first to one and then 10 another busi-
ness activity until all or nearly all
were doing their share of the world
production.
Great as are the gains shown by
bank clearings, iron output, untitled
steel tonnage and similar indiceS," con-
tinues Dun's Weekly Review. mere
statistical records no longer fully re-
feet a situation for which there is no
precedent. In some branches and sec
tions the volume of business has reach
ed such vast proportions that further
expansion is dependent upon increased
facilities for both production and dis
tfibution.
'Manufacturers in steel. in textiles
tional contracts which they cannot
handle. either because capacity is al
ready booked far ahead or through in
ability to obtain necessary raw ma
teria1s. The most remarkable feature
is the magnitude of the current demand
in spite of prices that would ordinarily
check il, urgent requests continuing to
be made for immediate deliveries of
leather footwear, dry goods and. eS-
pecially, of steel products.
Probably never before have the re-
quirements for actual use controlled
prices with SO little speculation to an
ests in the steel industry have with
drawn quotations entirely in order to
check the influx of orders which can
not be filed for months to come. while
in textiles. cases are cited where sales
men are being brought in from the
road or instructed to accept new busi-
ness only within certain limitations.
Result OF Extra OemanoS.
Efforts 20 meet the extraordinary
demands call for more machinery.
more manufacturing plants. more stores
and greater facilities for transporta-
tion, as well as for an increased num- =
Der Of workers. But at a time when the
producing and distributing forces of
the country should be running most
smoothly there is complaint OF Il
scarcity of competent hands, of annoy
rug labor troubles and o. the inability
't' the railroads to ke perceptible
'heeIway TO relieve the freight con-
t.cst:on.
car shortages. common enough dar-
iHs the crop-moving period, but uE-
Usual at this season, testify to the
great rush of traffic: and the problems
or transportation are aggravated by
continued storms which have also iu-
tertered with communication"