Show WHY the following are extracts from an address by geo ceo otis oils smith director united states geological survey american mining congress december 8 pheonix arizona Eu ropes war finds its echo in americas industry what contrast could be greater on the one shore ot of the atlantic all activity seemingly destructive in purpose on tho the other shore every energy erected along constructive lines absolute waste of life and property as opposed to production of wealth and betterment of life even though it Is at a distance that we view the terrible disaster that threatens the whole continent ot of europe optimism seems a lots art yet sooner or later this ephod ot of e catastrophe must be followed by a period of repair and the longer this period Is delayed the greater will be the needs involved in the reconstruction and replacement where war has torn down at terrific speed peace must build up slowly the interruption of international trado trade stopped our exports of cotton find and copper and our imports of dye stuffs and potash whereby several important industries were well nigh paralyzed paraH zed yet startling as has been this disturbance ot of the whole balance of industry certain fundamental facts and laws remain tor for us to build upon and indeed the lower course of foundation stones for optimism has already been laid evidence of business botter betterment ment is before us on every hand and the reasons tor for optimism are many the united states farmer has harvested a five billion dollar crop and there la Is a high price market for all our surplus food stuffs already our grain Is pouring across the Al antle the millions of men who are fighting are not working and yet these hordes of soldiers must be clothed and equipped as well as fed foreign orders have lave started factory operations which at once tends to relieve the stagnation lon in the steam coal trade the steel situation has turned from serious depression to rapid improvement and the whole mineral industry may soon expect to share in this general business improvement today the financial horizon Is soi BO nearly cloudless th that at the prophets of bad weather have little upon which to base their predictions the tha now new federal banking system makes the money reserves mobile as never before and extension of credit Is now possible without the veto power remaining in the hands of a small group of big men still another reason tor for belief in n business betterment is the recognition now becoming widespread ot of the general interdependence of big business and the general public on the one side the people are realizing that they are and have lave been in reality the silent partner in n bis big business and now that there has IBS come the promise of some regulation that will in large part prevent monopolistic centralization the people are interested in getting their share or returns that can come only with operation at a profit on the I 1 other hand the mana manager gerz of the large corporations the trustees of tho investing public are beginning to see that hat a certain financial security goes with public confidence and that the attitude to the public s so 0 tersely ex blessed 30 years ago by a pioneer in railroad financing does not pay dividends today of course optimism Is apt to go 90 to extremes already we are hearing such expressions as trade boam boom or opportunity unparalleled in history and avalanche of prosperity and even hardheaded business men to en are quoted as thus charac characterizing the present situation all ot of talk indicates that ii a period ai 6 t 0 vet er stimulation may threaten us a coa condition that Is somewhat symptomatic of the american temperament the tour four months record however can be summarized thus while european countries have been mobilizing their armies and calling to the field of 0 liat aliat tie their reserves of soldiers nol diers lers america has mobilized its credits and begun to send forward to the market place its vast reserves of foodstuffs food stuffs and mineral products secretary redfield recognizes three periods ot of business conditions as naturally following the declaration ot of war on august I 1 last those of shock stimulation and readjustment these three must bo be expected to affect in the same order all branches of american buz business Iness though the transition from one period to the next may not be simultaneous in all branches thus for several weeks after war was declared the exportation of wheat felt the shock and thousands ot of carloads accumulated at eastern ports with cotton the period of shock has been longer but stimulation of export has now begun with copper the resumption of sales to europe seems slow in coming but cofelt come it must forin tor in the modern world whether at war or at peace tile the red metal Is a necessary ol of life As we look toward th the 0 south routh we find that our commerce with south america for the last tour four years has been one sided to the extent of an unfavorable annual trade balance averaging more than 80 millions of dollars the act that the balance of trade is against the united states in two of the three A B C countries should be taken inken only as an invitation to export more and that 80 millions suggested the chance for further development of trade relations we need mealand meat and hides bides from argentina tin oro ore from bolivia rubber and caltea iota and Vene zuella uella nitrate irom chile platinum from columbia cacao from ecuador wool from peru and uruguay what can we export in exchange to increase industrial prosperity this country needs to export finished rather than crude products and to import raw materials rather than manufactures betterment ot 0 industrial du conditions can co come me best through expansion of manufacturing the increase of the element of labor in the product exported will mean that we are not be bartering away our heritage of natural resources ces but rather that we are using th these ese resources as a basis simply tor for the expenditure of labor which renews itself coming down to bottom facts the united states will by the european war only as the nation makes larger and wise use of its mineral resources foreign markets in the main can be won and held only as the quantity or quality of the made in america product rivals that of the g goods offered by the other producing na nations eions the buyer whether he be in the far east or in south america wants want the most and the best tor for his bis money Y yet e tit it would seem a sate safe rule of national conduct that industry should begin at home and therefore every industrial opportunity in almerea should be improved mp roved it if these opportunities tuni ties are recognized and grasped every one of us can indulge in optimism |