ECONOMIC WORTH OF WAR ORDERS
A banker pointed out recently that too much stress might be laid on the fact that the extra business being done by arms and ammunition making concerns is of a temporary sort. The profits entailed, he said, would not prove to be simply an unexpected inflow of cash to be distributed to stockholders and considered merely as a gift of fortune. The extraordinary earnings would be used in part to strengthen the position of many companies for the future, funded debts in the way of long term issues as well as temporary loans would be liquidated and working capital sufficient for increased manufacturing needs would be laid aside. Knowledge of this far-reaching value of war orders, the banker thought, was receiving more consideration from thoughtful investors than the desire for big extra dividends.
New York Times.