The Washington times., 1912-03-31

the former seems to disregard entirely
the unpleasant labor situation, and the
that stocks have advanced very far ard
very fast, and particularly so in conse-
quence of the fact that the improve
ment has been unattended by any i'm
portant news Developments, and has, in
fact, progressed, for the most part, in
the face of adverse news. Concerning
the future, the attitude of bankers ap-
pears to be one OF hope rather than of
confidence. BY persons who realize that
the change thus far has been one of
sentiment rather than one OF condi-
tions, II is not thought likely that a
very broad speculation will be per-
mitted, for that would carry the mar
ket into the stage Of acute political un-
certainty, the conventions. with loans
expanded and prices ballooned. This
would not be desirable, and, in conse-
quence, even those persons who are ex-
pecting better things look for repress-
Ing Influences from time to time.
Varied News Developments.
The news developments, within the
interval under consideration, were
varied and Of somewhat greater gen.
eral interest than OF late. They cannot
be said to have eXerted much, If any,
influence on prices, and many of the
happenings, such, for instance, as re-
lated to the very much unsettled labor
situation, we're ignored entirely. There
may be, of course, no occasion to bor-
row trouble on this score. for we well
know that strike is always settled In
time, but so many of these disputes are
springing up everywhere, affecting very
many different industries, and they
seem so indicative OF Industrial unrest
of almost national proportions that one
wonders at times if II is wholly wise for
a T1la nf m
wholly out of its reckoning.
When one considers the features from
an economic, not speculative. point
of view, II becomes apparent that In
each instance of a threatened labor
trouble the impelling cause is the same
that Is, additional compensation is de-
manded TO meet the increased cost OF
living. Though this is resisted, in more
instances than otherwise, the matter
has ended by granting the demands. and
the result cannot be other than to ad.
vance the cost of material still more tC
the consumer. A direct case in point is
textile workers OF Fall River. Cotton
goods were put up Immediately. Al
ready manufacturing profits are very
slight as a rule, so such advances SC
impelled may be defended, but how
about the consumer, who gets no in
crease, and is this a condition that be-
tokens healthfIl commercial develop
ment?
A Railway "0bject Lesson"
The problem, OF course, is by nc
means easy of solution, and how 4
will work out eventually 1t is diffcul
to say. Take for instance the present
deadlock over the wage advance ques
ton between the Eastern railroads anG
the Brotherhood OF Locomotive Eng1'
neers. 1t appears quite clear from
the prevailing tendency of railway
operating cost and of gross and ne'
earnings, that there is not sufficient
margin left to permit the railways tC
indulge in further general advances II
wages and leave much, IL anything
for the return upon the invested CAPT
tai, unless rates are advanced; but Il
is equally clear that II the rates art
advanced that the demands for wage
increase would become even more in
sistent and would probably absorb the
bulk of the added revenue.
1t was believed when the Interstate
Commerce Commission found agains
the general rate advances some month:
ago that the matter would rest for &
while, but II seems in fair way to b.
revived and in an unpleasant manner
into effect Chief Stones suggestion
that the country needs "a powerful OBJ
| ject lesson. calculated to teach then
| the absolute necessity Of permitting al
advance In freight rates, 10 the rail-
| ways" In any event this object les
SON. would prove a costly affair; costl!
| II the men struck and failed, through
loss of wages and the disarrangemen
of business; and costly II they won, anC
| thus add further to the high prices o
things. In any event II is the consume
that pays, and the question again rise
II true prosperity Is based upon a highe
cost for everything that man eats o.
drinks or wears?
Steel Corporations Borrowing.
OF matters bearing directly upon Wal
Street and the security market, the mos
| discussed feature of the week was tn
change in the financial policy of th
United States Steel Corporation, con
veyed to the public through the uneN
pected announcement of so, 800 %
| bond issue, secured on the constituen