The sun., 1913-12-29

Telephone and Telegraph Company had
made its peace with the Government by
agreeing to divest Itself of its interest in
telegraph lines and to establish conncc-
tions with independent telephone COM
pahies was one of the prime impulses In
the rallying trend Of the stock market
Wall Street was filled with a mass Of
subsequent rumor and report about
negotiations undertaken by other large
scale corporations to bring their organixa-
tions and operations into conformity with
the interstate commerce laws as they
have been defined by the courts. Official
intimations at Washington encouraged
such contectures. many Of which were
doubtless improbable. but there could be
no mistaking the hope OF the financial
community that all these circumstances
justified the Interpretation of President
Wilson's statement about the constitu-
tion of peace and its corollaries as some
thing like Il proclamation that the war Of
politics on business was over. or course
this implied not only a governmental
recognition OF the dangers inherent In
pursuing business effort with everlasting
| litigation hut also n reciprocal recogni-
tion by the managers of corporate in
dustry of what all the popular turmoil Of
a decade of agitation against the trusts,
| railroad and industrial, had signified.
\ happy event Of a very dangerous
| crisis will have been contrived II the
Administrations plan OF peaceful COM
promise with corporate industry Is meas
urably successful 1t may well succeed
because ON the one hand the spreading
adoption Of profit sharing schemes and
Of other devices for. according to the
laborer, larger share in the produc,
Of his toll testifies to the perception b,
the newer generation Of business mer
that the popular will toward business Is
wholly incapable Of definite embodiment,
/ at "a na lao, tln.
hand there Is evidence in political avow.
ais that tarH revision and currency re.
form go far enough for the present In
| disturbing business conditions. that no
litical weather vanes have caught q shift,
In the breeze OF public sentinen, and
that the wind Is not blowing from tn,
radical quarters from which II has helt
SO long. II both politics and busines,
have learned the real lesson Of the late
turbulent years there Is good ground fol
compromising differences under the Ad
ministrations constitution Of peace.
| Increased efficiency In every department
OF business is necessary both to an in
| crease OF labor's share In the profits o.
production and to preserve the incremen,
OF capital. Fitness rather than sze II
the real test Of economic units. Non,
OF these things can be easily defined IL
terms OF an act OF Congress or a Stat.
Legislature. What has been needed mos
to bring about pacfcaton OF the polit
cal conditions OF business has been pre-
cisely that which Is now hinted at in tn,
Developments Of the last few weeks: com
prehens.on on the political side OF tn,
popular desire that business should prov,
its worth by its efficiency and not by tn.
magnitude OF It's units hedgcd about Will
| agreements that initiated against efii
| cheney and supported by privileges which
protected inefficiency; comprehension OF
h,tc ell 90 thA tut, -.
popular distrust Of economic power de
void OF political responsibility and Of tn,
| certainty that no limited number Of me,
would be allowed 10 buy UP and through
purchase inherit the earth or any sub
| stantial portion thereof.
The new banking AM currency law ha
been for some time recognized as a pros
lpective factor Of beneficial import. Tn
mere passage Of such law does not get u
anywhere. The act 10 not self-operative
| 1t must be made 10 work and great co
operative effort will be required to maxi
It work well. II II does work well Amer
lean enterprise will be wonderfully as
sisted in the progressive exploitation o
wealth creating opportunity. Nor coul,
such a law take effect at a more auspi
cious time. The transition from the ol,
financial system 20 the new will be vastl,
| facilitated by the fact that bankin;
positions and the business situation
are in more or less thoroughly liqui
dated state. The country Is or befor
long will be on solid ground for tn
change.
In many respects the currency law jus
enacted fails to satisfy intelligent demand
for an improved financial organization
and mischevous possibilities are later,
in many OF its provisions At the sam
time the Indispensable cooperation Of a.
interests for the establishment OF the ne'
than seemed probable before the currenc
bill received its final shaping In the Sen
ate and In the Congressional conferenc
committee. At the eleventh hour on
vicious feature after another was elm
mated or so qualified as TO make II CON
lparatively innocuous and the Admnistra
tion leaders engaged in this praiseworth
task rewarded the efforts OF every frlen
OF banking and currency reform who ha
sought to help the legislation to a desi,
able conclusion No thanks are owing b
the country to the tepid rose water squirt
OF criticism which were directed agains
the bill from quarters altogether u
anxious for any legislation at all. but ar
| owing rather to the criticisms which hay
been branded as hostile and destructiv,
Save for such well deserved and extrem
! criticisms the nev law would unQucs
tionably have been far less acceptabl
and far more dangerous measure tina
1t is.
II President Wilson Is able to obta
i, the men Of character and ability win
should compose the Federal Reserve Boar
: there ls every reason to believe that tn
new financial organization will be O
: great advantage to the country in tn
long run. The Federal reserve act
: not n heaven born miracle OF Sound cor
> structive legislation" as 1t has been dc
scribed in some comment, but II does as
beginning. for 1t can be made to serv
: a useful purpose. Tho best thing about
IL the loyal disposition which has bee
widely manifested by banking and bus
ness interests to reconcile differences q
opinion respecting It's merits and de-
: merits and unite for Its successful opera
tion.
While 1913 draws toward It's end wit
more cheerful vista In all direction
than could be seen not long since man
OF its problems and perplexities will cor
tinue into the new year. The more opt
mistic expectations that are being ir
dulged by Wall Street are a gratifyin
. augury but they are bound to be ten
: pered by recognition OF the more or les
, , adverse factors that remain. 1t Is sti
, too early to make deductions about tn
effect OF tariff revision on tho trade an
: industrial recovery OF profitable volume
and price levels. or about tho extent I
which general business has qualified itse
. to meet the competitive conditions whic
are imposed by the new tarif schedule
and by such rearrangement Of corporal
. organization as may be in progress unde
, the prevailing conceptions of the popula
L.. l.s< anNA