The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-12-11
FACTS VS.. THEORY.

themselves.
FACTS VS.. THEORY.
At tho outbreak of the war, the
theory was held that the conflict must
Of necessity be short because the ex-
penditures were SO great that they
could not be long continued. The
money. 1t was thought, could not pos
sibly be raised to keep the treasures
going more than a few months. We
know now. SAYS the bulletin issued by
the National City Bank of New York,
that something was wrong about that
theory, for after four years of war all
Of the governments were spending
money at a higher rate than at any
previous time. and the war did not
come to an end for want of money.
The error in that theory seems to
have been in supposing that the ex-
penditures, Yould, come from a res
ervoir of pfeviopsly stored-up wealth.
which would Aoon be exhausted, but
the war, tor the most part, consisted
Of things produced from day to day
while the war was going on. All
wealth at last il in the form of prop
erty or goods OF some kind. The
only wealth destruction that takes
place is Of property, and it gives a
clearer idea OF the losses to think or
them in terms OF property than to
think OF them An terms of money. If
is consuming or destroying 1t is not
getting worse off. 1t maybe consum-
ing what it ought to be accommodating,
but this occurs even in time Of peace,
and is another proposition.
The truth Is. continues the bulletin,
that during the war the energies OF the
belligerent countries were concentrated
upon producing a stream of supplies
and equipment for the war, all of
peared. That was economic waste
| truly, Of something that might have be-
come capital. but it never was capital. 1t
was waste of energy which from the
economic standpoint might have been
better employed. 1t was a real waste,
and we hope the world will have wis
dom enough to avoid its repetition in
the future, but except as country's
ability to produce flow of economic
economically than it was before.
Much of this war waste was offset
by the increased energy. economies
and more complete employment of the
| people. including the entrance of wo-
men into industry. Moreover. this ex-
pansion Of industry and the practice
of economy extended all over the
world. The neutral countries by in
creasing their production. by consum-
| ing less and by putting check upon
their development work have helped
the warning countries to bear their
burdens. The effect is spread over the
world.
In some countries there has been a
destruction Of industrial equipment
and in ali some impairment by wear
and tear and neglected upkeep, but
there have been also important addi-
| lions to capacity thru new works con-
structed to supply war needs but
which are adaptable to make peace
goods. Furthermore under the pres.
sure of war needs there has been q
development of knowledge and OF
methods in industry which will per-
manently increase production. These
gains must be taken into the reckon
ing, and when ala factors are consid
cred a. probably will be found thai
none of these countries Is going to b,
a very long time in reaching its pre-
war production, provided there is nc
disturbance of industry. If social dis
order prevails of course the flow O.
products will be cut off, as in Russia