The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-07

credit awaiting absorption that 10, sc
much bank lending power TO be employee ed
TO Keep the business world going until
| capital supplies have been recruited. But
regardless OF what may happen in the
, future monetary conditions are given to-
day which according to all precedent
should have only one event.
The effect of a great increase IN the
volume OF funds available to meet de-
mands for credit has always been to ad-
vance prices. Rising prices always in
crease volumes Of trade wherever trading
OF any kind IL done and the process goes
on until credit becomes overextended. The
operation is almost automatic once IL
starts and Its commencement seems now
90 depend only on the revival of suffi-
Client confidence to express itself In a de-
mand for credits for business purposes.
what Confidence waits Upon.
Business men do not need to be assured
now that money will be forthcoming for
business needs. They have only to look
around them 60 see the fact which In inn
pressively evinced by the difficulty that
the Federal reserve system is enoountoring
IN getting business into the new banks
Confidence Is not impaired on account Of
money market fears nor does Il appear
40 he greatly Impaired by the European
war. One OF tho remarkable discover!e
OF two canvasses made throughou, the
country in the last few weeks to ascertain
the state OF business and OF business
opinion is that very little responsibility
is attributed to the war for the Immediate
business depression In the United States
On the contrary there IL a large consensus
IN the business community that because
OF the opportunity furnished by the war
American trade and industry should be
scaling the heights OF prosperous expan-
sion instead OF remaining in the depths
of depression
What does seem to have impaired oon-
fidenoe and so far prevented It's recovery
has been the kind of politics which bust
ness enterprise has had 10 contend against,
and there Ia widespread business opinion
that the return OF confidence depends
on the creation OF new political impress
sion. The manner in which business
affairs have been handled 10y Legislatures
and ENecutivesha done much to take the
heart out OF business men IN the las, few
Years. but while a good many difficulties
which politics has placed IN tho way of
business Will persist a new order OF things
would be denoted by such a solution OF
tho problem OF railroad credit as the Inter
state Commerce Commission has been
asked 70 make
This would do more than anything else
IN the category OF politics 90 put heart
into business again. II would engender
confidence 10 Use the supplies OF credit
which the money market Is to-day so
abundancy able 70 furnish. II would also
tap the reservoirs OF money and set credl;
flowing IN channels now dry Resources
OF lending power In the bankers hands
are not mechanically distributed. Credit
is many sided. In order to get credit the
borrowers title 10 It has to be established.
and because railroad credit provides the
standard from which all other credit =
measured all borrowers will be established
in better credit II the Interstate Commerce
Commissions decision in the Eastern rate
case changes the status Of railroad finance
for the better