The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-05-12
.st amount Of munitions and war sup.

More than in any previous war. 1t
Is essential that the productive capa-
city OF the country be modified as
nearly as possible for war purposes.
The great struggle is being fought in
the foundry. in the steel mill. in the
textile mill, in the shipyard and in
the various industries furnishing ma
! terial and supplies to be used by the
army The way in which American
| Industry functions in furnishing a
! steadily increasing supply Of NUM-
tlons Will determine to a great extent
the outcome of the struggle.
The aH-important question before
| leaders of American industry is how
we can best adapt our energy TO the
task of increasing our output. Our
I industrial life is SO complex and so
sensitive that it becomes a very diff
| cult task to make this adjustment
without impairing the prosperity OF
i the country. The great danger is tina I
under the urgent pressure OF the war
such adjustments may be made with
too little consideration as to how they
may effect our whole industrial fabric.
In making them we should not lose
! sight of the problems which peace al
so will bring
/ From the outbreak of the European
war in 1914 to our own deca ration OF
| war, our Industrial situation under
went great change. We were the
one, big, free neutral market in which
munitions and other products could
/ be bought, and those who were able
| 10 come and get our goods eagerly
| did so. They entered our market with
! an insistent buying demand. ba Cked
| by A vast purchasing power Con-
tracts were let and new manufactur-
ing concerns were formed. Prices
moved upward in certain commodities
affected by this abnormal, war-creat-
ed demand, and under the prospects
OF large and handsome profits, a new
/ industrial boom was inaugurated. Our
capacity for producing munitions was
/ constantly increased, and the boom
soon spread to other lines of business
/ not directly related TO war purposes.
! 1t has been estimated that the total
volume of our trade, as measured by
/ traffic carried by our railroads. in
creased approximate IS per cent
during that period
! In view of the fact that we were a
: neutral nation, and there was no ne
! cessity for US 10 discriminate between
war esse ntials and non essentials, an
/ important increase took place in the
development OF industries defined as
I non-essentials. The prosperity which
] the first three years Of the war
/ brought to this country and the re-
sulting activity in practically all in
dustries necessarily increased the de-
mand for all kinds Of comm 3dities
! The Difficulties of Rcadj istment.
/ The fact that our declaration OF
war came in the midst Of Suen an I'M
restricted Industrial boom Hss made
! the problem Of rea djustins cur in
dustries to war conditions all the
more difficult. II We had entered the
/ conflict a the time Of industrial de-
/ preston In which there VS. consid
cradle unemployment and il which
/ industries manufacturing ia:slries had
/ been running with decrea sed output.
the adjustment to VAR conditions
would have been much simpler, be
cause such surplus productive "a pa =
city could haye been utilized directly
in the foductlou of commodities for
war ~ses without impairing existing
IL Jstry.
THE business outlook during the
Arst seven months preceding he out
break OF the European war eas as un-
certain in the United States a. it va
abroad. Enterprise was at Il low ebb
and all the principal branches OF bust
ness were depressed This general
condition was clearly indicated by the
federal census of nufaetures IN
! 1914. The percentage OF increase in
the value OF products was le>~ in the
! five years preceding the war. or the
period of 1909 10 1914 thaa during
sAe previous manufactures census
4 period OF 1se4 TO 1909. 1ae same
general condition OF affairs existed
in other leading commercial end in
dustrial nations.
Before the end Of the y inter- a
tendency toward more favora BILE con-
ditions became noticeable. Great Bri
tain, France, Russia and Italy began
TO purchase from US foodstuffs, live
stock and raw materials, and placed
large contracts for future delivery OF
war and industrial supplies OF all
kinds Under these influences. during
/ the first half OF 1915. the Industries
I directly affected by war orders began
| to expand, and by the third quarter
I Of the year the demand for ali com
modites was on such a scale that
every line OF industrial enterprise was
stimulated. Domestic trad became
very active, and foreign trade reach
cd heretofore unknow proportions,
The total amount OF bank Earrings
/ increased from $1,000. 600 600 in
1914. i 100000 100000 IN 1917.
During This time there was an i'm
portant expansion OF American IN
GAstiSs anu fortunately american
factories learned, through that period
OF experimentation. how TO make
munitions successfully. Our indus
trial expansion. in fact. has bean such
that our capacity for the production
OF war supplies now is u2eq DIS led.
But there are extremists who would
have our whole industrial life cen
tered upon The production u war pro-
ducts to the practical exclusion OF all
else. In the speed and furry or mar
tial times they do not LOOK beyond
their immediate task. For the serious
student of American industry and an
ance. who sees UNEMPLOYED Sista.s of
opportunities for. and the future re-
sponsii ilities Of America. IL is clear
that this extreme is just as dangerous,
IL followed to g logical COR fusion, as
its opposite, namely, business as us
uai."
Tie adjusting of industry to war
irust not be so sweeping that the gen
erdi organization for production will
be destroyed. We have the great
necessity forced upon us To adjust in
dustry SO as to supply the required
amount OF war products; but We have
also great responsibility imposed
upon us in the maintenance q our
Industrial orga nixation for the future.
How Shall We Draw the inc
II Is quite generally stated, that our
industrial problem is maini>i that of
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