The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-12-31

! ne come out decisfyeIy for sound
j banking and currency act there would
be a good chance OF success. Senti-
favor of central bank, provided i.
J. is safeguarded from Wall street con
troll. 1t is not probable. however. that
anything will be done without urgent
pressure from the business commun.
I lily; nor is any ac-son expected or de
sired during the special session OF
i congress to be called for revising the
4 tariff.
Serious Railroad Problems.
I Everything the railroad buys, par
ticularly labor. has advanced serious
/ II; while the only thing railroads
/ have to sell, transportation, has re-
/ NAMED practically stationary For
three-quarters of the year the roads
endured period Of light traffic. Dur
| ing the last quarter there wat a graft
flying increase of revenue, thanks to
big harvest, and the roads are clos
I ing the year under somewhat better
conditions. Whether this will CON
tinue or not is predetermined. Suf-
fee it to say, the railroads are not
yet ont OF the woods by any means.
| Traffic conditions are such as to In
perativeiy cali for large amounts OF
new capital for improvements. But
political conditions are not particulars
~ encouraging to investors in rail-
road shares. and the higher rates of
Interest demanded simply add TO tho
burdens from which they cannot es-
cape. Their only hope is either a
permanent increase in gross earnings
or permission to advance rates suffi-
GENTLY to at least partially compen-
safe for enlarged expenses. Some so
luton of railroad problems must be
found during the coming year, and
II the interstate commerce commits
sion persists in its present policy Of
holding down the railroads. it will
have to shoulder the responsibility OF
Inadequate facilities later on. Be
tween stubbornly repressive inter-
state commission which cripples the
companies on the one hand, and the
creation OF conditions favorable to
agitation for government ownership
on the other, the path OF our grea.
railroad managers is far from being
strewn with roses.
The High Cost Of Living.
The problem of high prices still
monopclizes public atten ion, and the
cost OF living has become quite as i'm
portant factor in business life as
IN private life. Opinions as to the
causes OF high prices are of course
divided; not few authorities. partic-
ularfy those Of theoretical habit OF
mind, clinging to the theory that gold
Is the main cause. While the increase
In the gold supply must have some In
fiuence upon values, Its effects are
grossly exaggerated II must be re-
Iaembered that gold is not the chief
basis OF credit. Infinitely more credit
lis based upon salable property than
upon gold. Moreover, It is doubtful
II the Increase in gold supply has
more than kept pace with the worlds
rapidly increasing requirements. The
steamship and the cable hare wonder.
| fully consolidated the business world.
so that today industrial activity is
/ Worldwide on scale never before
l experienced. Great Britain. Germany
and all the other Industrial nations
have been enjoying q boom even
gre1ter than the United States. There
mas ben an enormous expansion OF
credit in consequence, an expansion
which some authorities believe to be
out OF al proportion to the Increase
/ OF the gold supply What would
/ paitry increase of one or two hundred
millions in The latter amount to along
/ side Of the tremendous expansion OF
the worlds credit? More gold has
/ been used in the arts, and several ma
tons have recently come under the
I gold standard. Moreover, India has
been boarding gold on an unprece-
i ~f<.4bSd tsN14C. LlET idW1iS ON
| this account during the pas. eight
/ years have been estimated at over
! Sfe0 100000. The Balkan-Turkish war
has also caused considerable hoard
! Ing The real causes for higher prices
have been: Demand outrunming sup
/ ply rise in land values the world
over; advance in the cost of labor:
higher standards OF living; increased
] taxation, and several other minor In
1 fiuences. The best cure is increases
produc len The supply OF many com
! modittes and conyeniences is still be-
I low demand It Is difficult to find in
stances where there is oversupply OF
any sort. The worlds trade Is still
unusually active, and there are no
/ signs Of cessation. A period OF rising
! values is very apt to be one of more
or less public unrest until consumers
have been able to adjust themselves
to the new conditions. Labor agita-
re In