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_.