Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-04-19
BUSINESS OF ATLANTIC
COAST LONG PREPARED
FOR EVENT OF WAR
Continued from page one)

I'm Sncial interviews which he gave 20
the Star.Bulletfn on preparation th
war Is as follows:
Capacity Engaged for Months
The council Of defense has beer
busy for many months planning for
the organization Of the cohntrys in
dustries to support the army and navy
in the event Of war, and the resources
placed at its command are very great
The immediate requirements OF the
government VIII not in themselves
amount to a very large percentage OF
the aggregate capacity, but coming at
time when capacity is already en-
gagged for months ahead the effect is
to make the situation more difficult
Tor private buyers. This Is particu'
larry the case in the steel industry
and with special reference 70 ship
plates. There is the most urgent de-
mani for plates for merchant ships,
and the mills are sold up on their ont
Lut fer into 1918. but the government
Will have the first call il it wants it.
The whole industrial! situation has
frightened Up, for besides the capacity
taken up by government orders the
imminence of government orders has
given a spur to other business. AS is
always the casa when new demands
develop there is { scramble all around
to cover future requirements. 1t is
evident that the productive capacity
of this country will be used TO the
limit throughout this year, and until
the war requirements are done with.
In view Of the national emergency II
is time to sound warning for pa
triotic reasons against all unnecessary
undertakings Or expenditures which
will divert labor or money from the
most important uses. Work which
can 20 over to smother year should be
postponed in The common interest.
The war needs should have the first
call on the industries. For economic
reasons also, this is no time for capt.
tai investments which can be made
later.
Subgetibe"For Loans"
l. ''One CT the most important phases
of preparednes3 is readiness 10 sur
scribe for the loans Which Will be or
fered by our own AMI the allied gov
ernments. The Federal Reserve Bear1
has issued. q statement, explaining
that its announcement of last No
MEMBERS was misunderstood! 1t not
only says that the taking of foreign
loans is proper method Of balancing
the exchanges. but encourages all
banks to carry such securities IN mod
crate amounts, and to assist in placing
them with the public.
In view of much that has been sad
of the ability OF the banks to take
great government loan, 1t is wen to-
emphasize the fact that it is far from
desirable TO have the loans taken by
private parties. The economic differ:
ence between having the banks create
new credit and having the public use
the bank credit already existent was
set out ut length in this publication
last month: in connection with British
government Borrowings. II the banks
create new credit. the effect will be-
to initiate the situation and increase
the reserve requirements. Moreover,
the bank situation should be kept free
and strong to deal with the business
situation. The late British loan was
floated without bank subscriptions and
bank subscriptions to the late sl5D.,
out, zoe Canada loan we're all declin-
ed when il was found that the lean
could be filled without them.
Taking Bonds Patriotic Service
THE banks should subscribe as the
board suggests, but chiefly with a
view to distribution. and the Amerii
can public should be prepared to take
the bonds as patriotic service. Saw
ing for the loans should be in order
here as it has been abroad. There are
protests against economy on the
ground that it may disarrange husi-
ness and perhaps occasion losses and
in some quarters.
There is but slight danger of unem-
ployment while the war lasts, and It
will only he possible to supply labor
where it is most needed by releasing
IL elsewhere. Business is inevitably
disturbed by war, and everybody must
adjust his affairs to the needs of the
hour. When the labor supply Is ut
terly Inadequate is no time to make
work On the plea of keep