The Washington herald., 1908-01-27

mitigated evils, who lament exceedingly
such proofs Of contraction IN trade as
are now before the eyes Of every one,
and who would If they could shut their
eyes absolutely to such circumstances
and st0utly declare them TO be nom
existent
Ground for Optimism.
But in the minds Of the thoughtful and
intelligent public. and, indeed, Of by far
the greater part of our American business
men, the retTenchment and slowing down
that has taken place in our country in
the last few months affords one Of the
best ard suTest grounds Of optimism con-
cerning the general future that can pos
sibly be imagined. Instead of dasbing
ahead ike plunging spectators whose
only motto is After us the deluge," the
people Of the country have taken tu
wearing their old clothes, to revising If
not stopping entirely for the time being
plans Of business expansion involving
"a large borrowing Of money and 10 cut
ting down their expenses and TO saving
? =
can. Even from the point of view Of the
specul4tor IN stocks the certainty that
such process as this is going on is the
most "bullish' argument that can be
framed, and viii surely prompt more
than any other one consideration the
growth Of that investment demand for
securities or of what Wall street stands
IN so much need. What the results of
even comparatively little time OF such
saving devices as these means for the
prosperity Of our country IN the long
run is matter which the history Of our
land IS full Of glowing records; and Ow-
ing TO fortunate conditions with which
everybody is familiar and which chiefly
consist ia the twin factors that there is
absolutely no doubt as to the safety
or the country's currency and that the
agricultural section Of the country which
was formerly the weakest quarter OF the
land IN times Of financial or business
trouble is now almost the strongest, there
Is every reason for the belief that our
time Of trial on the present occasion will
be shorter and less troublesome than il
ever was before.
deduction in Wages Coming.
II is manifest, however. especially in
view of developments since the first Of
the year, that there are two or three
matters that must be frankly and clearly
faced IN the hTSt place. the Iaboring
men Of our country. and especially of our
great railways. must consent 10 a con
siderable reduction IN their wages.
During the last three months the rail-
ways have been enabled to cut down their
expenses to some extent by laying of
men and by working their men for
shorter hours. but these expedients are.
as has now been absolutely demonstrated.
quite insufficient Railway pay schedules
VIII stand for the most part at the in
Hated levels at which they were placed
in the early part Of 1867, and even IL
the reduction in business that has Oc-
CURED We're only half OF what II has
been II would by no means justify a con-
Ilnuance OF this scale Of compensation
1t IS urged, and with considerable justice.
on the part Of laboring men, that they
cannot afford 10 work for as little money
as they used 70 years ago because Of
the current high cost Of living.
All the necessaries OF life undoubtedly
cost much more than they did a few
years since. The answer TO this Is that
Il Is not expected that wages will 60
back 10 the level Of former years. but
that il IS expected that they will be re-
duced in "a certain degree. At any rate,
II the railway business is 10 continue
for q few months more as bad as Il now
is the railway companies will not be in
receipt of enough money TO pay the
present scale OF wages and maintain any
distribution at all 10 their stockholders,
even il they wish 10 do so
In the second place. there must be
some realization Of the truth that the
business 0f the country through 1906 aud
the greater part of I90 twas abnormalIy
active and that a considerable time may
elapse before such activity recurs; nor
indeed does II seem 20 be considered ad-
visable by our best business men that
such state Of strain in the business and
financial world as was witnessed IN this
period should be repeated until the
finances and manufacturing plants OF the
country are in better shape 10 stand il
than they were before