The sun., 1916-12-14
WORLD GAINING IN
EFFICIENCY BY WAR
George E. Roberts Says Indus
try Benefits by the Speed
ing Up Process.

What the world Is losing through lack
~ Is more than making up in increased
Industrial efficiency due to the tremen-
dous pressure under which the countries
engaged In the struggle are working. ac-
cordinG to George L. Roberts OF the Ma
tional City Bank. speaking yesterday at
a luncheon Of the Iowa Society in the
Lawyers Club. Contrary to the usually
accepted beliefs. he asserted the amount
Of productive property that has been
destroyed Is very small.
The war Is not limited. as eminent men
believed It would be. Mr.. Roberts said.
by the enormous financial burdens that
have been imposed. Indebtedness is not
SO significant Rs It was thought It would
be and the war has become mainly a
matter Of Industrial organization.
when we look over the situation" the
banker continued. I'VE see that the
amount Of productive property destroyed
as compared with the total amount In
the warning nations Is very small. Great
Britain M Germany are practically UNI
touched and In some important lines their
capacity has actually been increased.
The enormous consumption which Is 60
ing on IL for the most part Of things Of
current production. 1t is a consumption
Of powder and ball and OF motor cars
and sasolene. Of food and clothing apd
war supplies.
Speeded to the Limit.
And all over the world. in neutral as
we'll as in the warning countries. there is
RnnrnNnna ArfiNifV In nrDtt1nnO thngR
things. There Is complete employment
everywhere. men working long hours,
women BY the millions are entering In
dustry. new machinery and new methods
are being devised and installed and in
dustry Is speeded up to the limit. II is
these things which all the world is work
Ing day and night to produce that are
being destroyed. and to the extent tina
the world produces each day what It
consumes hat day It is not worse of
than 1t was the day before.
I'VE must remember that the world
Is normally gaining in wealth and pro.
ductive capacity. II can suffer very
great losses during the war and not be
actually worse of than at the beginning
OF the war.
Industry is being recognized upon
more efficient basis. We know as indi.
viduals that Il Is not always possible tC
tSii bStiiVi All SNcht tuat III lts'il sSNilf
to be q misfortune may not have n train
OF events that are beneficial.
Danger In Prosperity.
W are having what on the surfac,
of things looks like a very wonderful
prosperity. l will q further and sa,
that despite some drawbacks II is "A yer,
widespread prosperity. but unfortunatel,
it Is not based on permanent condition.
and some features OF II are in them
selves a menace to the future.
Our people are generally gratihet
over the importation OF gold. And ye
you use gold without labor. ant
We are not getting more labor. Whe,
all the productive forces Of a country ar
already in full action you annot make
country richer by pouring gold In.
There Is every reason to expect
large movement OF gold out Of the coun
try after the war. and II this gold ha
become engaged as the basis OF credi
the fabric Of credit and of business upol
which 1t rests will have to come dowr
Undoubtedly there will be a considerab,
volume OF foreign business following tn
war that will be in effect an extension o
the war demand. but l cannot get rid O
the conviction that there will have to b
a period of REIMBURSEMENT for the genera
business situation soon after the war.