The sun., 1913-10-13

there has been agRravation of strain. the
unwelcome increas" coming from the
extra European countries. which have
been accustomed to rely on Europ. for
capital and cl edit. During the last year
Europe has had to cut down and finally
almost TO shut on supplies OF money to
such countries and has even had to with
draw funds to some extent from debtor
lands. The result has been that there is
to-day trouble 80 acute in South America
That u IL described as - financial crisis
while almost everywhere else debtor ma
tions are In difficulties. As long az pub
lie and private borrowers could obtain
money on their notes and MORTGAGES they
could maintain the pace Of even extrava-
giant progress but now the question Is
what shape they are In to meet their
obligations II pressure has to be- endured.
and what effect OF strain in the newer
countries will he reflected In strained
Europe.
Economic cause and consequence are
here seen moving In a vicious circ. and
something may occur to break the connec-
tion happily. but this is no time Tor over
weaving reliance on customary assu'np-
tions that everything will worl out all
right. This Is time when things have
Got TO be worked out with all the skilful
diligence and carefulness that can be
brought to bear by the Inanagers Of eco
nomic enterprise and the leaders OF finance.
with all the help that can be lent by the
heads and directors OF government. II is
not going too far TO use the word crisis
In connection with the whole foreign sit
uatiOn. Al such a juncture the aid Of
government can rarely consist Of any
thing more than acts Of political self
denial and abstinence from Interference.
hat this much service. government can
always perform
II ie M time fpr stale ~ the
soothing sayings with when confidence
was reassured during the last year. such
as that there was no trouble -xc-pt the
trouble caused by a foolish popular hoard.
ing OF cash in continental Europe. Can
any comDetent person fail To see that tn.
worlds finances are In state Of grave
disorder, that the brunt OF the task Of
trying to set them right has fallen on
Europe. and that the weight naturally falls
most heavily on the worlds capital OF
finance. London" Less than a quarter of
century ago very much the same kind OF
conditions subjected the Old World to- the
wrench Of most violent distortion OF
business and banking positions. as we'll as
OF speculative and investment commit
ments. The same set Of factors is never
| repeated at two similar periods In the
| sequence OF economic events. and in all
the resemblances there are dinere nces be-
tween the conditions noted to-day and
those Offering In the lat. sos and early
sos. There IL probably far greater
total OF resources now better concentrated
TO cope with emergencies than there was
then. but now. as then. trouble has been
bred OF a most inordinate consumption os
European capital and credit botn Tor the
legitimate and for tn. overspeculat.Ne
| exploitation of the wealth producing pos
sibilities of new countries. There must he
| a tendency toward similar II no, Identical
consequences from similar II not Identical
causes. and European financial energies
are plainly being eNert-d to avert or mini
nike the results of an era OF excessive
economic stimulation facilitated by the
| perfection Of capitalizing processes and of
the machinery for expanding credits.
We have much at stake In the outcomes
or the embarrassments with which Eu-
rope IL struggling. Ourselves borrow
| fng nation We cannot fail to be- affected
by the necessities which may arise in Eu-
| rope. our creditor On perma nent capital
| account I" the extent Of billions OF dollars
Apart from that the perpetuatiOn OF our
foreign markets depends on the persistence
OF foreign buving power. while the free
| dom Of our home market from oppressive
| foreign competition is involved in the
preservation Of the markets already es-
| iablished for the absorption Of the pro-
| huctive capacity OF other lands To what
| extent the state OF the worlds trade. and
| especially the state OF European finance.
has already affected us or IN going to
| atYect us further cannot now be ascer-
| tained or demonstrated: but II IL idle to
| suppose that we have not begun to make
| response to such conditions as have been
Indicated. How much comprehension Of
| this is there at Washington. where Ella bO-
rate programmes are being executed or
framed FOR the purpose Of setting M new
ideas Of government in the. field Of trade.
| industrial and financial end-avor' Very
| little. 1t IL to be feared
There H. absolutely no evidence that
| the Administration and It's supporters in
Congress have begun to recognize the
realities of the world to-day. There is
every evidence that Washington wits, are
| wandering in a world OF unrealit,es popu-
| lated by an exploited mass of struggling
souls thwarted in every way and hound
| TO servitude by class Of more or less
| wicked spirits who have seized power
| through perveIting privileged opportunity Y
TO selfish advantage. There is every evil
| dence that Washington regards the coun-
trys ablest citizens. whether in lines OF
corporate industry Or banking activity. as
| enemies to the public welfare. The Wash
ington atmosphere seems iniamed with
| heated manias that provoke suspicious Of
| traitorous conspiracy in every protest
which Ia voiced against the economic un-
wisdom OF tearing the fabric OF the in
dustrial organization to pieces in a vain
attempt to restore the social order as II
| existed hfty years or more ago.
IL there ever was time calling for
sanity and deliberate procedure in our
high political places II is now. when there
is spread before anxious eyes the un-
mistakable symptoms of worldwide
economic arrangement Of n deep seated
nature Civilization may not he able 10
recover it's equilibrium or restore sta
bilty TO values without painful and
arduOus read djustments from which We
ourselves cannot escape, Nevertheless
assuming that a period OF depressed vol
umes and values may have to intervene
before another era Of expansion the
| ira nsition can he accomplished in one OF
two ways II can he orderly enough and
slow enough to mitigate its hardships or
IL can be so accelerated as to commune
cate a shock to every interest In the land
and recovery from shock may delay dis
astrously the normal recovery from de
preston.
cannot help. For what happens here
we will be ourselves responsible. When
conditions already contribute toward q
lesseninE or loss of that force which
business and finance know as confidence
what wiser course could politics pursue
than prosecute with utmost slOwness
policies OF progress 81 called which dea
directly with the terms and basis OF
economic enterprise What unwisdon
could be greater than to manifest ruth
less purposes to carry out programme