Bridgeton pioneer., 1917-06-21
NEW BUSINESS ENERGY

If any stimulus were needed to put
ginger into the business situation il
was provided in large measure by
the oversubscription to the two bill
lion Liberty Loan bond offering. One
of the beneficial things is that money
which has been boarded has been
brought from hiding places and put
where it will not only serve the pur-
poses of the Government in war time,
but by becoming available for circu-
lation will help business men gener-
ally. The advance in interest rates
last week was due to the shifting of
large sums for the purpose of meet
ing payments on the loan, to pay
ments of income taxes, and to prep
aration for the big disbursements
for the payment of interest and divi-
dends in July, and the additional pay
ment of eighteen per cent. which will
be made upon the Liberty bond sub
scription on June %. Money rates
are likely to continue firm until funds
are released in July, but the firm rates
will have more effect upon specula-
tion than upon mercantile and manu-
featuring interests.
The extent to which the allies will
rely upon this country to supply mu-
nitions is shown by the abandonment
of construction plans for the largest
munition plant which has been pro-
jected in England. The making of
ordnance and munitions to supply our
own needs and those of our allies will
create industrial activity here as long
as the war lasts. Speeding up oper-
ations in the shipyards to clear the
way for work upon Government con-
tracts will also make for greater ac-
tivity in the industrial world, espec-
tally as steel enters largely into the
construction of ships. Activity in one
branch of business begets activity in
other branches. Owing to the de-
mands made upon the United States
Steel Corporation, the management
has decided to extend eleven millions
of dollars in enlarging the plants Of
the corporation in Alabama. This
is simply an illustration of what is
going on all over the country in the
way of enlarging capacity to meet
growing requirements
Large orders for the army and ma
Wy have kept the cotton mills busy.
More raw cotton was consumed in
May than in any month in the history
of the trade. According to the Census
Bureau, $3.50 bales were consumed
in that month. The war budget bill
was signed by the President last
week This carries an appropriation
of over three and one-quarter billions
of dollars to provide for the army and
navy, sum far in excess Of the pro-
ceeds of the Government bonds Just
sold. The Government has loaned to
the allies nearly one-half of the pro-
ceeds of the loan. Taxation will in
eiihC piONluC Ou6 anu one
half billions, but the Governments
expenditures are upon a scale which
may make necessary the sale of more
bonds before the year is out. These
unprecedented expenditures are re-
lied upon to keep business humming
in this country.
Hearings and arguments before the
Interstate Commerce Commission
have been concluded in the applica
ton of the railroads for an increase
in freight rates and a decision should
not long be delayed, as the commits
sion has very thorough understand
ing of the situation. An opinion is.
anticipated next week. Without de-
lay, plans are being made for a sup
ply of 100000 additional freight cars
which will cost probably $150000, 900,
and to handle this additional equip
ment more locomotives will be re-
quired. Thus the car builders and
the locomotive shops will have all
they can handle in the way of new or
ders very shortly.