The sun., 1913-12-22

the old system to the new II must be
noted, however, that for some time there
will be confusion in the banking world
while bankers and their stockholders and
counsel are deciding whether to come in
under the new law II must also be noted
that the economic body has been afflicted
with u weakening malady and might suf-
fer from stimulation. We have other
countries than our own to consider in this
connection and the course Of foreign
events will play n considerable part in
the circumstances which attend the iilaug-
uration Of the new financial system In
our own land.
The point s well worth making be-
cause of the infiationary purpose which
has pervaded the councils Of Congress in
deliberating currency legislation, and be-
cause OF the appeal to inflationst senti-
ment which has been made AN argument
with business circles and speculative mar
kets for support to the legislative move-
mcnt. The whole world. including our.
selves, has been for many months Suf.
fcring from nothing else than imitation.
During several years there has been too
cheap and available commodity OF
credit. and IL IL a question II the cure for
excessive initiation has been completed. II
the credit markets are not now in a con-
valesccnt stage. or even If they are, the
injection of fresh innationary processes
might work infinite harm.
In any case the disturbance through
which the world has been passing has had
, it's fundamental cause in an exhaustion
| OF capital supplies and it does not appear
| that anything like II balance has been
| struck between the state of capital and
| the demands upon it. The foreign invest
| incnt markets are overloaded and our own
capital market Is none too strong, judg-
ing from the fashion in which public
BORROWINGS are pressing upon II and fore
ing the rate for capital steadily higher
| at the expense Of trade and industrial
| needs.
| While a new banking and currency
| system may enlarge the capacites of the
| credit market there is one thing which il
| cannot do No law can eXt.mporize or
| manufacture capital That is something
| which has to lie created out OF the in.
| crrment of wealth resulting from produc.
| tive effort Nor does row fiscal legisla-
! ton mal, crops II IL easy enough 10
! ma anuf ictur. currency with which TO III
| the land but this only stimulates "A de.
| ma nd for commodities and the world IN
| been suffering from comparative
| scarcity of agricultural commodities AS
| we'll as from a dearth of capitsl in late
years \ deficiency OF commodities and
| a redundancy of credit or currency can
only spell disaster and there il no remetl, !,
| for such conditions as the world has been
| facing save the remedy OF hard work.
which produces more commodities and
less extraVagance All the lasting good
that may hc acco,Opli shed bv new c,ir.
reucv legislation is the Assistance which
| il may render toward real productive Of
fort There is magic in the suggestion
of imitation. but IL is n kind of camblir q
magic which ends in disillusionnent and
hard times for the masses of people
Politics supplied mos; of the dominant
Influences of the past financial week.
=
fairly authentic r.port something NOR.
than an irupllcotion Of , prohab,e gran,
of rate increases 10 the Eastern railroads
hu, of more significance because NOR.
definite was the settlement of the GOV.
.rrn.nt litigation against the American