Stock Exchange was flooded with orders forimmediate realization on stocks and bonds, that came from all parts of Europe. The prices went down very rapidly, the supply of gold was becoming exhausted, and, if it were not for the closing of the New York Stock Exchange, the United States would have had to deal with extremely acute financial difficulties.
From August to November, 1914, the foreign trade of the United States passed through a period of depression. In December, however, this trade began to blossom out, and each succeeding month invariably shows a considerable increase over the corresponding month of the preceding year. The figures for the first eight months of 1915 show the value of exports as $2,231,808,345, while during the corresponding period of 1914, the exports were valued at only $1,311,349,656. During the whole year, the amount of export increased over 1914 by more than $1,500,000,000.
Comparing the amount of export with that of import trade during the time of the war, we obtain figures which are no less significant. During the first eight months of 1915, as we have already seen, the amount of exports was $2,231,808,345. The imports during the same period equalled $1,150,884,760. This leaves a balance of $1,080,923,585 in favor of the United States. During those same eight months the amount of gold exported from the United States was $10,902,690, while the amount imported was $223,828,565. This shows clearly that Europe has been settling her trade balance largely by returning to the United States the American obligations held by European capitalists. Mr. L. F. Loree's recent investigation shows that during the first half of 1915 the railroad stock returned to the United States by European holders, was valued at $480,892,135. During the same period the value of stocks and bonds, other than railroad, returned to America, reached the figure of $140,000,000. Thus, during the first six months of 1915, the value of American paper returned to the United States by European holders was $621,000,000, or $104,000,000 a month. The tempo of the trade between Europe and America has not yet shown any signs of slowing down, and we are therefore justified in assuming that during the year the debt of the United States to Europe has decreased by about $1,500,000,000.
This leads us to the conclusion already quite obvious. The War will concentrate in the United States enormous amounts of capital which will necessarily seek new fields of application. After the War the whole of Europe will have to pass through a
