New-York tribune., 1918-03-10
Warning Nations
Consolidate All
Industrial Units
Swiss Bank Review Sketches
Tendency Toward Economic
Cooperation Abroad

In the tremendous competition dur
ing 1917 between the two great groups
of European belligerents striking
further integration of economic re-
sources took place, according to the
Swiss Bank Corporations review of
the year.
There has been a decided tenden-
cy," the review states, in summarizing
the economic strategy of the warning
nations, "to increase the industrial
output by the concentration and stand
ardization of production. Small fac
tories and works have been gradually
eliminated from government contracts,
and have consequently been obliged to
close; the scarcity of raw materials
has compelled others to restrict their
output. In such cases the tendency has
been to contne the production to GER
tain factories and to close up others,
instead of distributing material on an
eQuaDle basis so as to allow all of
them to continue working. This has
cost of production and to economize
fuel and labor.
"Side by side with this concentra-
ton, which may almost be called
obligatory, there exists very decided
voluntary movement in the direction
of cooperation. Small works are being
taken over by larger ones and large
works are amalgamating. Scarcity Of
hands and economy in manufacture are
the principal factors which call for
these combinations. Furthermore, the
captains of industry, seeing that they
have interests in common and would
no longer compete with one another,
are more DISPOSED to entertain the
idea of these combinations, which may
prove advantageous to them when the
war is over
"Standardizatio has been another
and very important method of increas =
ing the industrial output, and has been
introduced not only for work in con
nection with government requirements
but also for that of the civilian popu-
lation. The difficulties Of production
have been greatly increased by the
lack of sufficient means of transport
by land and by sea. AS neither side
has SO far succeeded in forcing a def
mite issue by battle, both groups en-
dcavor to emphasize the military effort
by economic pressure. more easily
achieved, it is thought, by interruption
of the ways of communications"
Neutrals' Exchanges Improve
After discussing the decline in the
foreign exchanges of the belligerents,
which arose from adjustments to war
necessities, the review adds: "The
Spanish, Dutch, Scandinavian and
! Swiss exchanges have maintained a
rising tendency. This advantage, how
ever, is rather the result of the tempo
rary weakness of the commercial and
industrial organizations Of the bellig-
erents, due to war conditions, than to
any increase in the economic strength
of those countries. Such rise in the
exchanges is not an unqualified
blessing, for it carries with it as many
disadvantages as advantages. To state
the truth, the only real benefit neutral
countries have derived from it is to
have been able to buy back, under ia
vorable conditions, securities they had
placed abroad AS far as commerce
and industry are concerned, the disad-
vantages of the rise in exchange are
distinctly preponderant, for it is an
other factor which helps to render eX-
ports more and more difficult.
''As to the future, it is evident that
the longer the war lasts the greater
will become the discrepancy between
the neutral exchanges and those Of the
| belligerent countries. Loans contracted
from time to time in neutral countries,
as we'll as other measures adopted to
| steady the exchanges, can have only a
temporary effect. At best credits but
allow the governments which obtain
them to adjust their payments to neu-
trail countries on the best terms avail
able, but trade in general cannot de-
rive any benefit therefrom. The only
/ permanent improvement in the eX-
changes is that which would result
from an increase in the exports to the
neutral countries concerned. The pros
rect of peace probably will cause the
exchange to incline toward the normal
basis in the ratio presented by the
actual rate of exchange between Great
Britain and America"
From the point Of view of Great
Britain, whose conditions were studied
by the Swiss Banks London branch,
commercial conditions throughout the
world are fully discussed.
"The production and distribution of
breadstutfs," it says, "is the gravest
problem of the hour. The outstanding
feature of the situation is the big re-
ducton in the worlds output of wheat.
Scarcity of labor and of horses, occa-
stoned by the mobilization, have great
ly reduced the planted area, especially
in Europe, while, on the other hand
the shortage and poor value of ferti
lzers have conduced to decrease in
the yield per acre throughout the world.
The effect of these factors has been
still more keenly felt by the inexperi-
ence of such labor as was available, by
the high price and the frequently poor
quality of seed. 1t must, however, not
be overlooked that in agricultural mat
ters much depends on the weather. In
England, where the interests of agr-
culture have for long time past been
subordinate to those of industry, the
corn BILL, introduced last April, marked d
a complete change of policy. This
measure proved highly successful, and
Great Britain is the only belligerent
country able to show an increased yield
of wheat for 1917, compared with that
of 1916.
Military Demands Pressing
"The outlook of the sugar trade is
uncertain. The colonial cane sugar has