The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-02


gun to go forward into trade and industry
In fashion demonstrated by the expan-
sion OF cotton exports TO two or three
times the amount OF average shipments
in September.
There was in September little apprecia-
tlou OF tho export trade prospect which
was opening UP, but as October drew near
TO an end this wholly encouraging feature
of the situation did MOI lack emphasis and
understanding. II tho expectations OF
some OF the shrewdest of foreign exchange
bankers are realized the country's foreign
credit balance inside OF year compared
with our customary account In rerent
years WIZ aggregate fully a billion dollars.
Avoidance Of Political Pitfalls.
In the October record of financial Inn
provement there must also be set down
the swift advance made toward tho inau-
guration OF the Federal reserve banking
system, which Is scheduled 70 begin busi-
ness on November 16. There has been
10 much effort TO prevent any severe dis
location OF banking funds or commitments
as an accompaniment 20 the opening or
the reserve banks that the transitlon from
the old system to the new Ia likely 20 be
made without jar or hitch. When II
IL accomplished the country Will have at
It's disposal facilities for the financing Of
trade and industrial recovery tho pos
eibllities OF which are far from adequately
realized.
All our troubles are NOT over with BY
any means, and besides those which origi-
nate In the war we can make trouble
for ourselves. The greatest danger threat
/ ems from political quarters Political
gluttony for popular acclaim may spoil
American achievements during the war
crisis by compelling fantastic departures
from the path OF prudence which has n
the main been followed under the advice
and counsel Of banking and business
leadership. The cotton situation still con-
tRins an element OF political hazard So
also does the establishment of the Fed
eral reserve banking system. which has
been heralded by excessively ostentutious
Treasury advertisement a.; the cuntri-
buttons which the Federal reserve banks
may make TO the supplies Of borrowabie
credit Mr. MCAdoo has a cheap credit
oheession which suggests very great
menace indeed n tho Federal Reserve
Board could conceivnbly suffer itself 20
become a mere annex 20 tho Treasury
administration.
There IT, however. no use IN norrowins
trouble. The chronicle Of the last three
months II more than . warrant for the
hope that the management OF our affairs
will continue 20 be slgnalized by eagacious
respect for the teachings OF experience
Except for the institution or Govern
ment marine insurance bureau almost
, nothing has been done since the out.
|
contemplated or prepared for long before
the war or derived sanction from pre-.
vious practice Banking syndicates Z
deal with phases OF an emergency mr.
familiar IN our annals, and the leg'sla
, ton under which emergency currency wa
issued was put on the statute books sever
, wears ago. The use ~ clearing hous'
certificates is an old device which tint
, has tested.
By keeping within the limits OF 81
perience the country has avoided worl'
Of mischief It has maintained Its cr'dl
: abroad and has facilitated the operation
/ OF those automatic processes OF the none
market and OF business which are fl
more Trustworthy protection for volume
/ and values than any amount ~ govern
l mental interveutions. One OF the mos
= hopeful matters which attracted atten
I ton at the end Of last week was IN
reported message indirectly communicate
! from President Wilson to the bankini
and commercial community that the Al
I ministratlon expects great revival Il
+, American economic life to proceed IRON
" the spontaneous enterprise OF bushes
n men themselves and has no notion tina
= any great or affirmative change can D
wrought by legal pressure from the out
, side
J / The case OF the railroads before IN
q Interstate Commerce Commission does no
z fail outside the foregoing categorie'
j What the Government Is asked to d
there IL TO relieve the railroads fror
= externnl legal pressure in order TO re-
= store spontane.tv 20 business enterprise
l. II the Interstate Commerce Commissio
. | secs the duty deVolviug upon II as y
= seen by practically everybody except agI
n totors who live by denunclation Of IN
= railroads. almost the last obs'aol" vi
g have been removed from the path or IN
- country's progress In business and imam
| a
wav been cleared that. with "A fresh stir
u'us to investment confidence given by th
= adoption Of more liberal policy of "a.
Is road regulation, banking Interests W
= have difficulty in keeping tho stock rs
p change closed no matter what reason
h Offer Cor holding the regular secur't'
70 markets in q further state or fuspehsloh'