At this time Prof. Scott Nearing of Toledo University took the Chairmanship of the Council and branches were organized wherever possible-some of those in New York having Chairmen with such names as L. P. Goldberg, Dr. I. Kaufman, A. C. Wyman, S. E. Fructer, C. A. Schneider, Oscar Alter, etc. The Cincinnati branch was organized by Colon Schett and D. Kiefer, local proGermans, with Rothenberg of Cleveland as the chief speaker. Their literature teemed with such statements as this: "The savage orgy has dragged itself over three of the blackest years that modern history records. . . Sooner or later we must begin the process of stopping this war. Why not now?" How this was to be done was unimportant, apparently; the main thing was to create disaffection, pessimism, division, weakness, amongst American people. A weekly journal commenced issue by the Council on Oct. 10 with extreme Pacificism as its principle and denunciation of everybody and everything except themselves and their own views. A membership at this time of 1,500,000 was claimed with branches in 75 cities. A third organization of this kind was the American Union against Militarism; with its subsidiary American Legal Defence League intended to defend and help supporters who were arrested or who defied the Draft, etc. Its Publicity Bureau in February started a post-card canvass of 100,000 people, asking them if they thought the States should go to war or if they did not prefer a Referendum --and declaring that "for 22 years (before entering the War) President Wilson had given the country an inspiring example of patience and thoughtful deliberation." In June after the War declaration-they published advertisements broadcast over the country opposing private manufacture of munitions and compulsory military training, or service, and demanding a Conference of Neutral Nations to maintain neutral rights! The signers of this document included Jane Addams, Amos Pinchot, Eastman and Maurer, A. A. Berle, and Crystal Eastman. A Civil Liberties Bureau was organized as a centre and defence for conscientious objectors to military service and other affiliated societies were the No-Conscription League and the Federated Union for Democracy while The Blast, edited by Alex. Berkman who was in gaol for sedition, and Mother-Earth of similar repute, were approved organs. Meanwhile many lovers of real peace, of honourable national life, had abandoned or altered their Peace affiliations. Men like C. E. Russell, A. L. Benson, John Spargo, broke with Germancreated and manipulated Socialism; journals such as The Advocate of Peace stood by the war-policy of the nation, while many Leagues and organizations of a War and Nation-first character sprang into existence. Incidents of the year which must be mentioned were the fact of 100 newspapers and magazines being under Government investigation in September as either dangerously Socialist, Pacifist, anarchistic or pro-German; the refusal of Geraldine Farrar, in New York on Feb. 11, an admitted pro-German, to sing the National Anthem; the enforced retirement of Dr. Karl Muck, a Prussian, from the Directorship of the Boston Symphony Orchestra, because of a refusal to play "The Star Spangled Banner"; the decision of the Board of the Metropolitan Opera Co., New York, to ban German songs and release Ober, Kurt, Sembach, Braun and other German singers from their contracts; the strong sentences passed by Judges in different parts of the country upon Pacifists opposing Conscription and the Draft, on the ground of treason. War Production, Trade, Industry and Finance in 1917. The wealth of the United States, according to the official estimates of its Census Bureau, was $43,642,000,000 in 1880, $65,037,000,000 in 1890, $88,517,000,000 in 1900, and $187,739,000,000 in 1912. The increase in the last 12 years was $8,000,000,000 a year and John Skelton Williams, Comptroller of the Currency, stated on May 26, 1917, that the increase during 1914-16 was at the rate of $40,000,000,000 per annum or a total increase of $100,000,000,000 in about three years of the World-war. The surplus earnings of the people in this war period were estimated by Mr. Williams at $20,000,000,000 or twice as much as the 1917 call of war to the Republic. Mr. Williams continued as follows: "Much of this accumulated wealth, produced by over 40,000,000 intelligent workers, has been re-invested in mills and factories, in the enlargement and expansion of business enterprises of all kinds, and in loans to foreign countries, while our deposits in banks have increased by billions. It is believed that the investible earnings or profits of the citizens of the United States are now increasing at the rate of $2,000,000,000 every three months." As to the Banks the total resources of the National and State institutions on May 1, 1917, one month after the American War declaration, were $16,000,000,000 or the greatest ever held, and since July, 1914, the resources of National and State banks together had increased by $8,000,000,000 or more than the total deposits of all the banks of the United Kingdom. According to M. W. Harrison, an official of the American Bankers' Association (N. Y. Times, Apr. 15, 1917), the people of the United States could obtain and utilize, if necessary, $75,000,000,000 for war purposes. In its natural resources the production of the United States in 1917 was as follows: As to Trade the merchandise totals in three calendar War-years, with the annual excess of exports over imports, had been as follows: 1915, $5,333,167,542 and $1,776,074,152; 1916, $7,871,617,266 and $3,089,184,596; 1917, $9,178,000,000 and $3,274,000,000 respectively. The excess imports of gold in 1917 were $166,000,000 compared with $530,000,000 in 1916. The exports of breadstuffs in 1917 totalled $602,241,223 compared with $456,197,826 in 1916; of meat and dairy products $362,415,400 and $281,621,982 respectively; of cotton $575,306,634 and $545,228,684 respectively; of mineral oils $253,027,075 and $201,721,291 respectively. Of course, increased prices and values had a good deal to do with these expanding figures and the London Times' financial writer in its October Supplement estimated that such advances during the 1917 fiscal year in wheat, corn, flour, bacon, hams, sugar, mineral oil, brass plates, copper pigs, steel billets, steel rails, structural steel, cotton cloth, and raw cotton accounted for nearly 75 per cent, of the increased value of the total. As to other trade conditions the National Foreign Trade Convention of 1917, at Pittsburg, approved a statement drawn up by J. A. Farrell, Chairman of its Council, which declared that "to meet world competition United States business must be relieved of disadvantages imposed by legislation and be protected by governmental action from possible discrimination in foreign markets." At the same time the United States should "adopt the principle of a flexible or bargaining tariff." Industry showed great expansion in these War years. The net incomes of the 104 chief American industrial concerns were as follows: 1914, $263,153,892; 1915, $575,045,979; 1916, $1,273,854,854. When President Wilson on July 11, 1917, intimated that the Allies should not be charged a higher price for War supplies than was paid by the United States Government he gave a decided check to undue profits which was increased by succeeding taxation legislation. In the fiscal year of June 30, 1917, 78% of United States exports consisted of manufactured, or partly manufactured, goods, as against 59% in 1914, before the War. The greatest items were iron and steel products of which the 1914 export was $251,480,677 and that of 1917 $1,129,341,616; Explosives, which were $6,272,197 and $802,789,437 respectively; Manufactures of brass, copper, mineral-oil (refined), cotton, chemicals and dyes, motor-cars and leather, totalled $481,000,000 in 1914 and $1,570,000,000 in 1917. Commercial failures in 1917 totalled 13,855 with liabilities of $182,441,371 (R. G. Dun & Co.) compared with 16,993 and $196,212,256, respectively, in 1916. It may be added that a Tariff Commission was created by President Wilson in March with Prof. F. W. Taussig of Harvard University as Chairman to investigate and report upon the trade and tariff policies of other countries. It will be seen that the United States had a splendid financial basis upon which to enter the War; there was nothing small or narrow in the expenditures, Loans, undertakings and popular hopes of the months following April; neither the President, Congress nor the people as a whole, showed the least desire to develop their preliminary operations on anything but the largest scale; beside the figures, which soon developed, the $3,478,000,000 of Civil War expenditure in 1860-5 were trivial. Much of what Great Britain. had gone through in transforming the economic, political, social and general life of an unarmed and peaceful nation into that of a formidable, armed, combatant Power, was faced in 1917 by the United States. During the year W. G. McAdoo, Secretary of the Treasury, suggested to Congress and obtained the power of raising $2,000,000,000 by the sale of War-Savings and Thrift Stamps, and issued Treasury certificates to Nov. 1 totalling $3,388,698,000; the gold monetary stock in the United States on Nov. 1, 1917, was $3,041,500,000 or one-third of the world's total. At the close of the year the annual Report submitted by Mr. McAdoo for distinctly War services included in the year ending June 30, 1918, was, for the Army, $8,668,000,000, for the Navy $1,300,000,000, for purchase of obligations of Foreign Governments $6,115,000,000 and for the Shipping Board $901,000,000.* The total of all estimated Receipts (1917-18) including Liberty Loans, was $12,580,732,800, the similar Expenditures $18,775,919,955— including the Loans to Allies. The Estimates for June 30, 1919 (submitted by Mr. McAdoo on Dec. 3) included $6,615,936,553 for the Army, $1,014,077,503 for the Navy, and $3,504,918,055 for Public Works which were practically all fortifications. The total Receipts were put at $5,176,000,000 and Expenditures-exclusive of Allied Loans-at $12,804,034,440. The actual National Debt on Dec. 31, 1917, however, was only $5,615,000,000. To meet these heavy calls (about $36,000,000,000 for two years of War) new taxation and large borrowings were necessary. The War-tax Revenue Bill, as it finally passed both Houses on Oct. 2, was expected to produce $2,534,000,000 of revenue and included the following estimated returns: Income Tax.. Excess Profits Tax.. $ 851,000,000 1,000,000,000 Wines and Spirits..... Transportation. $193,000,000 $145,000,000 40,000,000 Under the Income Tax returns of 1917 there were recorded over 22,000 millionaires, and of these about 3,700 were multi-millionaires.† Meanwhile the Banking system held an important place in financial War-work. The National Banks were increasing largely in numbers and wideness of distribution and on June 30, 1916, their capital, surplus, and profits, deposits and circulation, totalled $29,358,000,000 or an increase of 15% over 1915. Their lack of cohesion and organized efficiency was, however, a serious matter to which Mr. McAdoo, in his Annual Report for 1917, drew explicit attention as an element of national weakness. He urged them to join the Federal Reserve system and thus consolidate their strength. This system, organized on Nov. 16, 1914, was tested by the War and financial strain and under it the 12 Reserve Banks had increased their Assets from $943,410,000 on Nov. 17, 1916, to $3,012,406,000 on Nov. 16, 1917, with gold holdings of $1,584,328,000. Practically, it formed a Government Bank and acted as banker for the National and State institutions, while the Board in control of the combined operations had a powerful influence upon the general banking policy. As the total resources of United States Banks in May, 1917, was $35,000,000,000 this fact meant much in a financial sense. A statement of the Board on Nov. 28, 1916, had produced a serious effect on Bank investments in Foreign *NOTE.-U.S. Official Bulletin, Dec. 5, 1917. †NOTE.-Report of Commissioner of Inland Revenue. |