Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1916-08-17

There can be no doubt that, from a |
business point of view, the American
policy OF neutrality has been richly JUST
fled by the two years of the Esfopeah
war now virtually ended. When the
storm burst in the first week of August.
1914, causing panic in every financial
enter and forcing the suspension OF trad
ing on the stock exchanges Tor MANY
months, it was by no means so Clear as
it is now that nonpartlcipatlon IN .he
war was the best business policy 1or
America. A considerable period had TO
elapse before the economic effect OIL tne
European struggle on this country coula
be surely estimated. The original phe-
nomena We're not reassurlng. MOI oh.S
were tn. stock exchanges and other
speculative markets closed, but the cottoh
export trade was paralyzed and the price
Of cotton cut in two, gold was eNpofteu
in large amounts. call money rose as nlsn
as I per cent. The fear that England ana
France. would liauidate immense holdings
OF American securities, deprlVlnS US u
our gold supply kept the stock markets
closed until the winter OF l9l4-l9lo' VI uii-
til it became apparent that our eApof.
trade would be large enough to protect
our position and even give us some con-
troll of the international exchanges.
The United States was exceedingly 1of-
| tunate in the summer of 1914 in having
| harvested unprecedently large crops ana
! our wheat especially began at once 10
! move to Europe in enormous quantities
I aft high prices. These shipments were the
l beginning of the most wonderful period OF
foreign trade America has ever eXper-
,enced. for the crops of 1915 We're also IN
the bumper class. 1t was not, however
anti the foreign demand for war supples'
especially munitions, assumed the dlmen-
/ sions of a phenomenal ~conlnerclai WING
fall that one realized the fact that the
European wal meant unprecedented pros.
nerity for the United States. The SECOND
wear of the war, now ended, has fully con-
firmed the most sanguine forecasts OF
last summer as to trade activity, the EN-
p!oyment Of labor and the strengther1n
of our money markets. Foreign tradt
figures for the last fiscal year have lately
been published and scarcely need to bt
referred to again. The trade figures o
two years ending June 80, however, which
approximate the whole war period. sum
marize the results. Considered IN tn
ight of the apprehensions of the autumn
of 1914, when our gold supply was threat
ened by q drain to England, the excess o
SO, 200, 900, 900, of exports over imports II
the two years seems fabulous. Since tn
gold movement turned in our favor, o.
account of our mounting exports q mer
chandise, we have imported, net for tn
two years, gold to the amount abou
1926. 00O, 600. In the same period, Amerlc
has brought back it's foreign held securl
} ties to an amount approaching $4,000,
600, 900; and it has loaned to belllgerer
. and neutral governments abroad no les
,, than 81, $40, 900, 900, establishing itself a
[ the credit and money center of the worlt
with a currency system solidly based o
! a huge accumulation of gold.
!. A detailed study Of the facts woul
L carry one to great lengths. Suffice 1t
= say that profits and earnings of all kin
have risen to uneXalnpled heights. Agr
culture was never rewarded so richl
Labor was never paid such high wage
Railroad earnings were never large
Bank clearings have climbed to unpr'
cedented levels. Earnings of industri
b companies may be Illustrated, broad
speaking, by the report CT the Unite
States steel corporation for the secor