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Taranaki Daily News, 30 March 1916, Page 4

AMERTCAX WAR-PROFITS. Although it ig generally known that America has been reaping a golden harvest in consequence of the war, few people realise to what an enormous extent she has been scooping in the money by means of a most profitable trade, not only with the countries which are at war, but also with neutrals. The principal exports which have been em riching the United States are foodstuffs, war •materials (including automobiles), army clothing, and horses. It is estimated that America's exports for 1015 would be £790,000,000, as against £422,725,000 in 1914. The mere difference in value does not, however, indicate the extent of the profits made, for it must be remembered that the prices charged for goods last year were war prices. Ihe export values of wheat and oats were more than doubled, while those for beef and bacon were almost trebled. Thus, a fifty per cent, increased output of wheat gave a return in cash of an additional 120 per cent., so that the American traders have every reason to regard the war as a veritable gold mine. The returns show that over one-third of America's exports went to Britain •( £192,000,000), her next best customer being France (£80,000,000), and then Italy ( £44,500,000). A glance at the table giving America's trade with Britain and the Continent for the first ten months of 1915 shows that as compared with the corresponding period of 1914 there was an increase of 106 per cent., the value rising from £-201,000,000 to £415,000,000. Foodstuffs rose frojn 74 millions to IGO millions, manufactures from 97 millions to 182 millions, and miscellaneous from one million to 20 .millions. There- was an exceptionally large rise in the export of military munitions during the same period, the increase being; roughly, £21,000,000, while the value of automobiles exported exceeded that of the previous year by over nine millions, army clothing and other wool manufactures showing a rise of between four and five millions, and horses over fourteen millions. Naturally such extensive purchases disorganised the rate of American exchange, and it became necessary to readjust this by means of a loan, the shipment of gold, and the sale of securities from Britain to America. The war caught Britain unprepared, and it was America's opportunity, but the lessons conveyed by the compulsory transactions should be taken to heart. In the first place Britain should henceforth hold at least a year's supply of wheat and flour and as much frozen meat as possible, but the one great need is for the Empire to be self-contained, so as not to be obliged to pay ruinous prices in an emergency like the present. Fortunately the acuteness of the foodstuffs problem no longer exists, for Canada, Australia, and India have all been favored with good harvests. At the same time the dominions should utilise their resources to the utmost, both as regards primary products and industries, as well as in manufacturing and storing war material. The British Empire ought not to be dependent on outside sources, and its money would be productive of far greater benefits if retained than by shipping it to America. The trend of opinion in every part of the Empire is certainly running: in the desired direction, and it is to be lieped that after the war these import-! ant matters will receive the attention | they deserve.