OCR Text |
Show WHAT THE BUSINESS. OUTLOOK PROMISES. Reviewing business conditions, Henry Clews makes the tfollowing observations: "General business has slowed down somewhat, bank clearings now running run-ning only about 20 per cent ahead of last year, as against 40 and 50 per cent ahead of few weeks ago. Nevertheless, Nev-ertheless, trade has been more active than usual at this season; and. as summer draws to a close, all indications indica-tions point to an active fall trade. A most important factor in this connec- tlon is tho immensely Increased purchasing pur-chasing abilities of the masses, resulting re-sulting from the activo employment of many classes of labor at unusually high wages. ' The war, the stoppage of emigration and tho great demand for hands in many plants have created a serious scarcity of labor: the result being that labor as a class is unpre-cpdentedly unpre-cpdentedly prosperous and Inclined to spend freely and demand still higher wages. The strikes of today aro incited in-cited by prosperity and not by wage reductions; they are a part of the gen-oral gen-oral inflationary movement which is spreading over the whole world, and which has apparently not yet run its full course. One of the results of the war has been to immensoly stimulate tho industrial activity that would in any event have developed in this country, coun-try, though in a much less degree. This war stimulus will extend for some time yot. some authorities saying say-ing tho war will last for another year at least. The progress of the Allies is exceedingly formidable, but slow; and the resisting powers of tho Central Powers are doubtless much greater than commonly supposed; as the Allies Al-lies progress, the more desperate the resistance they will have to encounter. encoun-ter. The managers or our Industrial plants are. therefore, calculating upon a continuance of this all-powerful stimulus of war orders, which in turn induces continued heavy exports, huge trade balances, gold Imports and further fur-ther foreign credits, loans or bond Issues. For another year at- least, New York promises to be the only free money market in the world, and this means a further prolongation of financial, industrial and commercial activity, increased to a still higher degree by an enormous gold supply and the new banking system, both of which have permitted a huge but sound expansion of credit. Beyond question, the war Is impressing its effects ef-fects upon this country more and more as time progresses, and Inflation must continue until credit contraction is enforced: either through exhaustion or the close of the war, which would pormlt Europe to recall a portion of its gold- For the time being the war is quite powerful enough to offset an unsatisfactory harvest, a disturbed labor situation, a threatening poMtieal campaign and a flood of anxVMcs which . concern the managers of bier business. There are u.i.Le enough iir-hirTvc " u-" 5 1 " , -"'' ii f -""her unreasoning enthusiasm; nevertheless the &enei. business ouciook is promising, prom-ising, credit ls sound and confidence in the future Is undisturbed. on |