AMERICA AND THE WAR.

New Zealand Herald, Volume LII, Issue 16026, 18 September 1915, Page 8

AMERICA AND THE WAR.

MUNITIONS FOR ALLIES.

HUGE ORDERS AND FIGURES.

EXTENSIVE CONTRACTS.

There is much uncertainty about many of the war orders placed in America, says the New York correspondent of the Melbourne Argus, because in some instances the value of them is exaggerated, in the interest of speculation, and in others it is concealed, to promote the purposes of the manufacturing companies or to prevent demands ' for higher wages. It may be." he says, " that the grand total of orders definitely placed since the beginning of the war, and of those for which negotiations are still pending, amounts to 1,500,000,000d01., but a very large part of the arms and ammunition arranged for is still unmanufactured. Contracts for 3,000,000 rifles can be traced, but few have been delivered.

" Great quantities of shrapnel have been ordered but not much has been shipped. Russia has sought more than 60,000 railway cars and 200,000 tons of steel rails, but there is great congestion at Vladivostock for want of cars and locomotives which have not arrived. Russia asked the Pullman Company to erect a plant in that country for the manufacture of 30,000 cars, but the company declined to do so. There are very large contracts for powder. One company's exceeds 60,000,000d01. One of our locomotive companies has -orders amounting to 100,000.000d01., but they include arms and shrapnel. Great Britain, Italy, and France are still buying horses. Our exports of horses and mules in the eleven months ending with May were ' 301,829, valued at 65,000,000d01. Our typesetting machine manufacturers are mating gunsights, and the makers of typewriters have turned to the production of 10.000.000d01. worth of fuses.

" While our exports of what is used on the battlefield hare been large, they do not account for the great excess of exports over imports in the fiscal year which closed with June. That excess was 1,094,422,792 dol., a sum greater by 428,000,000d0L than any preceding annual excess. The tide turned in September last, for in August the excess was on the side of the imports. But in the fiscal -year our imports fell off. showing a loss of 219.000,000d0L This was due to the war. And the exports of foodstuffs rose (in eleven months) to 724,000,000d0L from only 281,000,000d01. in the preceding year.

Stock Market Operations. "Our stock market continues to be dominated by the shares of what are called war order companies. Railroad securities are neglected. tor some of these war shares there have been extraordinary advances. The upward movement has recently been emphasised The price of the Bethlehem Steti Company's common stock, on which there has never been a dividend, has risen in nine months from 26 to 275. This is on orders amounting to £150,000, but President Schwab virtually says that no dividend will be declared this year. Wild speculation in the shares of the Crucible Steel Company, which were selling at 18 in May, carried the price to 68, and there has been a gain of 20 points since the publication of a discouraging statement i v the chairman of the company's board. Here is a corporation that has not been paying dividends on its common stock, and that owes three years* cumulative dividends, or 7,200,000d01., on its preferred stack. It has orders for 15,000,000d0L, on which its profits may be 5,000,C00d01., but this officer says lie cannot sej that dividends can be paid ' for a good many years to come.' The speculative public, however, could not be restrained.

"Some of thA war stocks are not listed on our Stock Exchange, but are bought and sold in what is called the kerb market. Shares of the Electric Boat Company, which owns valuable submarine patents, were selling last winter at lldol. The price to-day in the kerb market was 365. In one day there was a gain of 53 points, and 100 points were added in another. This company ln« recently taken large orders for submarine motor machinery and for very fast motorboats, which, armed, are to be used against submarines. The shares of one leading powder company have advanced from 100 to 700. Speculation in war stocks has not been affected unfavourably by our Government's latest -Note to Germany, although some of our people think it may lead to war. The movement of stock prices indicated popular approval of its emphasis.

Canadian Government's Loan.

" The Canadian Government's loan 45,000, 000d01., in one and two year 5 per cent, notes, free of all Canadian taxes, and convertible into twenty bonds enjoying the same privilege,* was very quickly negotiated here last week, and subscriptions were for three times the amount. The rate, 5 per cent, (one year notes sold at par. and two year notes at 99J), is that which was fixed for about 90,000,000d0L of loans previously procured here by Canadian provinces and cities. The British Government has not decided as to what course it will take for establishing a large credit here to pay for war supplies. This 5 per cent rate suggests that an offer of British notes here at a lower rate might be unsuccessful to some extent. And probably exemption from income tax would be required. There are objections, r-f course, to such exemption, and to offers at a rate below that of the recent great war loan in England."