Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-12-31
1917
Economic Strain on Europe and
Sequel to Our Entry Into War

Events of this yeai' followed one an
other in order wholly determined by
developments OF the war. They may be
grouped as follows:
First Continuance Of the war in Eu-
rope with varying fortunes; the sub
marine campaign; the retreat OF Hin
denburg. The Russian revolution. fol-
lowed by political chaos. the Bolshevik
usurpation, and the negotiations for
separate peace by Russia The defeat
of Italy and the renewed activity of
Germany on the western front.
Second. Tightening of the economic
strain in Europe, enormous increase
In paper money issues, Russia adding
$4,000. 100000, Germany $1,720.00O. 900.
and Franco $1,000, 100000. Yet a war
loan Of S4,s43,5OO,0OO ioated by England
in February, the largest single Issue of
the war.
Third. Entry OF the United tates into
the war. Prompt introduction of con-
scription, with natural effect on the la
| Dor question.
violent rise IN commodity prices. due
! largely to our own Governments new
demands. coming on top of the needs OF
our allies. Wheat at $3.50 per bushel
in May, against Sl.l9 in 1916; steel AT
500 per ton in June, against sac In
1916; cotton at 3lA cents a pound in
November. as against llA cents II
1916: all of these prices being the
highest since Civil War days.
As a consequence. imposition of maxi.
mum prices on many products, either by
absolute Government order or by agree
ment between Government and pro
ducers $47.50 being fxed for steel
r2,2O for wheat of this years crop anC
S2 for that OF next years.
Fifth. An American wheat crop barrel!
100000 bushels above the deflcien
yield of 1915 ard, except for that season
/ the smallest in half dozen years.
sixth. All records broken early in tn
year in this country's monthly iron pro
duction and export trade. necreas
later to a smaller monthly figure thai
the year before, due to previous over
working of mill capacity and to diver
: sion of shipping facilities to our ow
> army transportation.
= Seventh. Mobilization Of railway fa
= cllities under war board of railwa
: managers to meet the unprecedente
> business resulting from governments
Z and commercial demands. Gross earn
/, ings which have surpassed all precedent
!, but such increase in expenses for labo
, and material, after the spring month";
= as brought net earnings well below 1917
: Eighth. Enactment Of a revenue Law
!. after SIX months of debate with wild
divergence of taxation plans betwee
House and Senate), which was est
8, mated TO produce $2,534S7O 900 OF th'
d amount, $s5l,O0O.O00 being levied o
y incomes and $1,000. 100000 on exces
e profits.
It Two large Government war loans
{ one of which. offered in June at Q
IS per cent, applied for $4,000, 900, 900 an
x received applications for $3,035, ,226,s $50
re the other offered in October, asking Il
~ S3, ,0OO, 900. 900 and recely ng tenders
y $46l7532, 900. Advances OF credit
m our Government 10 its allies, which,
l. the end OF the year. had reached S2,77i
~ Ninth. Extremely violent movement
M the neutral European exchanges again
" New York in the last half of the yeal
which was generally aecr!bed 20 9;
IN partial embargo on exports to Europea
II neutral markets contiguous TO Gle
DO many, but which, IN fact, resulted fro
- purchase of sterling bills In those ma
ly kets at the low prices current, resa
B. OF them in New York at the high
he "pegged price" and transfer OF the pr
On ceeds from New York TO the neutr
es markets. A gold import moveme
~ which, beginning the year with Rvera
n monthly arrivals Of nearly 100000, 90
-, decreased rapidly after we went to wa
n through suspension with our consent
England's gold shipments To- US, Il
nc ports OF gold, which rose from {i55,7Ol
900 in 1915, TO 1871, ,c00,000 IN 1917. Pr
ho hibition, BY executive decree In SepteI