Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-02-18

ton OF war supplies caused the country
to fall behind in normal development
and in the increase of wealth in forms
serving the usual peace-time needs Of
the population. 1t caused the building
of a great feet of vessels at cost of
about $1,000, 100000, which since the
war has turned out to be a liability
rather than an asset, but the railroads
were not kept up to the growth of
the country's needs, house-building and
public improvements fell behind, and
much of the industrial development for
war purposes proved to be of COMPARE
lively little practical use for other pur-
poses. The recent action of a great
British corporation, Vickers Limited,
in writing down its capital by the
equivalent sum of about 100000 600 IL
illustrates the policy which has been
found necessary by many corporations
which expanded to do war work.
Finally, the violent Auctuation of
prices and the interference with normal
trade disorganized industry. disrupted
the price and wage relations between
the several industrial groups of the
population, with the result that the reg
ular flow of trade was disturbed, and
great loss OF employment and pro-
duction was experienced. The relations
between debtors and creditors, prices
and property values, were seriously at
fected, much injustice and hardship re-
sulting.
We have referred to these general
conditions in other issues of this Let
ter. and have received numerous COM
munications indicating that Our COM
ments were received abroad with in
credulity. Herewith is an extract from
letter which comes to us from Paris,
and which probably gives fair idea
Of the views commonly held abroad
1t is written by Frenchman, an active
man of affairs, not in public life. We
would be glad to give it in full II its
length did not forbid, but will say that
although evidently written under the
conviction that France is being harshly
treated, it shows a disposition on the
part of the writer to be not intention
ally unfair. He says, in part:
| don't presume for one moment. that
the vaults of the Federal Reserve Banks
are filed with artificial sold.-that all
the investments of the American people
In the various banks, saving institutions
and Industrial enterprises in the y. D.
and Europe have quite imaginery titles.
and that the gigantic profits made during
the war and the aftermath have evaporat-
ed in smoked Candidly speaking. the In
crement of the actual American wealth 10
really not based upon such faliacious
hypothesis.
] will also grant you the privilege to
accept the figures of tho american war
expenditure upon it's face value. upon the
proviso, that the heavy Losses incurred
by the shipping board 10 included In this
figure. TO my mind, these losses In the
greatest part should not be put upon war
expenditure. II 10 Q notorious fact that
these losses arc only due through the un.
skillful mana cement, the 'unbusinesslike
competition with the English and other
European shipowners. For its unfortunate
to blame.
As regards the situation OF the asrieul..
tural classes, / can only refer to the rss
ports of the Federal Trade Commission.
Vol. ! and T. We find the. high prices
paid for all the cereals during the war
and since: the same remarks apply Tor
rice, cotton. live stock, etc. The high
pr1coe Oothlneo mas oNeIsoo scs $50
time the economical and political crisis
Of the farmers union.
We know also that the Chicago packers
became in the same time more wealthy
and powerful The Cuba cane planters
and the American sugar rehners were
stuffed with gold. Il will only recall the
purchase made by Mr.. Mckenna. Chan
cellor of the Exchequer. OF s00.oVo' tons
raw sugar at double the current price.
and immediately after the outbreak OF
the war;, The American coal mine own
ers made substantial profits. The ship
builders have also made huge profits. many
ships were sold to Europe. whilst the
manufacturers Of war materials were prac-
tically ehoked with profits. The many
commission firms, exporting all kind of
Commodities to the whole world. have
made substantial profits. In short, the
wears Of the war were raining with an
othey kind of mama, - the forty days
+, The desert for the children Of Israel
The suggestion that this country
should not include It's losses upon ship
ping in its war costs, on the ground
that the losses have been due to bad
management, suggests an inquiry as to
whether the war costs, debts and finan-
cial embarrassment of other coun-
tries have not been to some extent In
creased by bad management? We pre-
fer, however, to confne the discussion
to the original question, whether the
United States on the whole pro6ted BY