The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-01-01
THE NEW YEAR.

The United States enters upon the
new year under conditions vastly diff
ferent from anything that has hith-
erto prevailed and conditions not
dreamed of a few years ago. The
war has wrought great and unfore-
seen changes, especially in our BUSH
ness relations to the remainder of the
world.
It quickly changed this country
from a debtor nation to next to the
chief creditor nation of the earth;
stimulating our foreign trade to such
a degree that in less than five years
our exports increased $50 per cent
and our imports so per cent. In even
less time than that we have absorbed
net, $3.000,0eO,O00 securities. and have
loaned to the Allies about 100000
100000 net. Our national wealth is
estimated to have increased about 40
per cent; our bank deposits about SO
per cent and our bank clearings nearly
90 per cent.
As maritime power we have
leaped almost from the bottom to
good second, having 100000 tons of
shipping already completed and 49,
100000 tons projected. spite of
the diversion OF our economic ener-
gies and the consequent dislocation
of labor, we produced more than half
the worlds supply of copper and oil.
OF steel and cotton we already pro-
duce vastly more than any other ma
ton. We raised larger quantities of
grain and cattle than ever in our his
tory, and Mr.. Hoover has told hls that
we must send not less than 10000
900 tons Of food this year to starry
without causing any scarcity at home.
In truth, the United States has found
itself internationally.
In foreign trade. says Henry Clews
in his Financial Review, we are sure
of great development. Immense
quantities of commodities, crude pro-
ducts and building materials will be
wanted in Europe for reconstruction.
France and Germany can supply but
little. Britain is already well pre-
pared, and is making a prompt start;
but much of her greatly revitaIized
energy will be consumed in the new
development of her own empire. The
United States will, therefore. come in
for liberal share of this new demand.
We, too. are making ambitious plans
for trade development in South Amer
lea and the Far East, and rlany new
opportunities will be opened by this
great war.
Several of our great banking insti-
American branch banks are opening
all over the world. Under the Webb
law, designed to permit combinations
Of exporters, very extensive prepara-
i tons are being made, and many large
industrial corporations have Joined
these organizations. Small concerns
have equal opportunity with the larger
under the Webb law, which was also
| intended to avoid possible conflict
with the Sherman Antitrust lew.
During 1919 we may look for a
large expansion of exports and a very
considerable growth of imports, altho
! the latter, under present conditions,
cannot be expected to keep pace with
the former, and we shall continue to
be a leading creditor nation. The
only means by which these debts can
be settled and by which foreign coun-
| tries can buy our products is thru a
| liberal granting of credit on our part,
also a much wider investment of
American capital in foreign enter
prises. This is a new but necessary
departure, and one that will ulti-
mately lead to an increase of national
prosperity and influence. When war
borrowing is ended we will be in a
! position to grant these credits freely,
having more free capital than any
other country; also having large gold
supplies and growing income from
our foreign holdings, the proceeds of
which to a very considerable extent
can be profitably employed abroad.