The daily morning journal and courier., 1907-11-11
Monday, November II, 1907.
THE GENERAL SITUATION.

THE GENERAL SITUATION.
 It may be several weeks, possibly months, before that state of confidence is revived which was everywhere felt six months ago, but nevertheless it is not an exaggeration to assert that the general situation throughout the coun- try, is steadily improving, Men are re- covering from that feeling of appre- hension which naturally overlook them when they did not know the ex- tent to which the assaults on capital were to be carried. This does not necessarily mean the attitude of the federal administration, though that was of course included in the general estimate of things, but it does mean consideration of the one hundred and one things which count towards the weakening of public confidence when once the slump begins.
 We are strongly inclined to the be- lief that the action of the directors of the New York, New Haven and Hart ford Railroad Company in issuing de- benture bonds instead of new stock will increase confidence in it's manage ment. There were several reasons which it may be assumed encouraged the directors in this step. It enables the company to make large saving in safeguarding itself against future needs while placing on the market at the same time security which is guarantee of it's soundness. It is of course obvious that the original plans of the company would have been car ried out and stock issued had not the financial market been overtaken by distress. The fall in the value of the New Haven stock made new program necessary and 1t was to devise pro- gram that would have in support of it the best experience of men that the stockholders wisely left the problem to the directors at their recent meeting The holders of rights who secured them by purchase may feel themselves aggrieved, but it is difficult to see how the railroad company can be held re- sponsible for rights which had not been created even though in ninety- nine times out of a hundred the mar ket in rights would have been undis- turbed The company has in fact been confronted with condition, not the- ory, and that 1t has met it in manner to offer the market bonds which are non-taxable and legal for institutions of savings to buy is of itself a new source of general encouragement. Stockholders of the road can get one debenture for every three shares of stock held by them. The great major fly of them will take advantage of the offer, but whether they take up all the issue or not it will be satisfactorily disposed of. That goes almost without saying.
 But this is not the only promising sign of the times as they relate to local interests. There is no disturbance in the industrial world save that which naturally and logically follows in the wake of disturbance in the money market If the commanding power of the New Haven Railroad company, for example, can aid in the restoration of general confidence it's influence will be felt in 8 variety of directions and the producers of Connecticut and of all New England will go on with theil plans of development which have con- cerned them for so long a time. That the truth of this is recognized by mer in control of local savings banks is shown by the recommendation to be made by the trustees of the three loca savings banks that the rate of interest on all deposits be maintained at four pel cent. The meaning of this act is that the homogeneous of these banks ot savings realize the steps which mus be taken to stem the current of appre. hension. It carries to every small de. positor, for whom the institutions O, savings exist, the assurance that tn, men in charge of them, who serv, without pay and who have only il mind the reinforcement of the wage earner, and who enjoy public conf dence, are ready to take any eours, which can be justified by human ex perience, and which is likely t, strengthen the conditions. In fact tn, act has its altruistic side at a tim when altruism is more or less restrict ed in its operation. By attracting nor deposits to the savings banks they no only perform service for the thrift wage -earner in increasing his savings
 but they permit these reservoirs O
 money to perform the function thei
 creation in part contemplates. In ad
 dition, too, they set the seal of disap