Peace and the Demand for Money.

Professor Sprague, of Harvard, a leading authority on finance and a practical economist, has stated recently that the war, instead of reducing by destruction the capital investment of the belligerent nations, has in a large measure actually increased it. He believes that outside of the actual war zone the great question after the war will be, What use can we make of this gigantic industrial machinery?

Compared with this problem, rehabilitation of the wasted area will be a comparatively simple matter, one which will require work rather than an economic solution.

This theory intimates, therefore, that peace will bring about a possible stagnation in industry due to over development of mechanical equipment and to diminution of able-bodied workers. As ac corollary it anticipates a considerable supply of available money, reasonably low interest rates, and a substantial home demand for Government obligations obtainable to yield from 5 per cent to 7 per cent, as at present. --The Outlook.