The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-11
Spring Agricultural Conditions
Offer Encouragement to
Hopeful Sentiment.
RECORD WHEAT PROSPECT
Presidents Federal Reserve
Board Appointments a Good
Omen for Politics.

NOT even tne events IN tne MtNi-
can crisis. which was quite OF so much
market Importance as the Government
crop exhibit with its indications of
probable winter wheat yield OF $780,
600. 900 bushels or more.
In every other respect also. the report
was most encouraging. showing Il splendid
state OF the SOIL generally propiSous
weather to date and farm work well adj
vanced. or course 40 early In tho farm
season we have more n crop promise than
a crop prospect and more n hint than a
promise, but II Is wiser in tho United
states 10 reckon on a satisfactory agrl-
cultural year than the contrary just AS IL
Ia wiser to take n chance with success
than to discount failure.
\ degree OF dependency has been pro-
NOTED lately by various factors in the
economic reckoning, which conduces to a
kind OF wilful pessimism that refuses TO
recognize reasons for a recovery of bust
ness and financial confidence. but it is
only such wilful pcssimism that would
refuse to be heartened by the agricultural
augurles of the season. If anything like
suspicious weather attends the farmers
efforts from now to late summer there is
every warrant for believing that the
American harvests of 1914 will be of un-
| precedented abundance. and there Is in
this outlook. IL II is realized. an assur
ancc OF prosperity which will prevail
! nightly against forces making for bust
| ness depression and contraction In values.
There Is nothing which the world so
much needs to-day and nothing which the
| United states so much needs as an album
dance of agricultural commodities. There II
surplus OF assumed wealth. but OF real
wealth. the products of the soil. there has
been II deficiency. This more than any
| thing else has been the cause OF the high
/ cost OF living and the high costs OF doing
business and IL nature is this year kind to
| the farmer business volumes will not only
| grow in consequence of copious harvests.
but margins of profit will DO increased
and supplies of capital available for the
uses of new enterprise will be augmented.
Ii would he undesirable to project for
ward activities enthusiastically on the
| announcement OF crop conditions at this
| time, but incentives are vouchsafed by
the present agricultural portents FOR TAX
| Ing more cheerful view of things than
has been prevalent lately. Troublesome
influences persist. to be sure. There ~
tho Mexican crisis and, politics is far less
constructive than It ought to be in Il
/ land where constructive political endeavor
would count for more than anywhere else
on earth. Still. even In week that
offered fresh occasion for tho unsettle-
ment or business and financial confidence
on political account. there also was
/ granted along with the magnificent crop
J promise Of the May report a political
| token OF vast encouragement.
Tho reference is to President Wilson's
selection of members for the Federal Re-
serve Board, selection that has won
countrywide approval. Here was an
illustration OF how much unnecessary
trouble may be borrowed from politics.
L9&t years currency legislation did not
, during the deliberations OF Congress nor
| In the terms OF the Federal reserve act
/ Itself suggest that the beneficial posi-
/ Dilities OF tho new banking system which
I SET h. ~.
B relied upon.
There was more than an implication
/ last year. strengthened by the recent
manipulations OF the reserve bank organ
! ization committee. that the revolutiouized
I banking organization would be politically
availed OF TO carry out dangerous preJu-
dices against financial centres and used
as an instrument for depressing concen-
| trated wealth. Everything in this cate
CORY depended OF the personnel OF the first
Federal Reserve Board which Is TO estab-
nsh the new banking organization, ad-
minister 1t and give life to the Federal
reserve act. itself nero skeleton 81 a
statute. How agreeably srprehen sion >
have been dispelled Is a very gratifying
matter OF last weeks record,
Nothing which the Administration has
30 FAR done has so commended II to the
spirit OF constructive business and flnan-
c!al endeavor as President wilson,
choice Of appointees for tho Federal
Reserve Board. II is to be very much
more bankers board than might have
been supposed from the omens Of last
years legislative annals. and the desig-
nation OF Paul NJ. Warburg alone is al
most complete guarantee that our great
new banking experiment will be inaugu-
| rated under the most hopeful conditions
| We're his colleagues to be less obviously
M than they arc the guarantees OF Mr..
! Warburg's appointment would be weak
ened. but the scrutiny which has been di-
rected toward them has ELECTED salts
| factory indications that about the ablest
banker in the country who could have
been asked to help in the conduct OF the
| great experiment will have able support
There is not the least trace OF politics In
the way In which President Wilson in
! these appointments has discharged the
/ tremendous duty devoved upon him. and
there is everything in the makeup OF the
board to Justify the belief that "A very
radical d., parture in American finance
| Will be made under conservative super
vision. Nothing could be- more help
I full and hopeful than such Il con-
yiction at THIS time. for IL reenforces the
. optimism derivable from the agricultural
situation. Crops and money are the great
/ factors Of prosperity, and wise manage
/ ment OF the Federal reserve system.
which Will be In working order before
many months are over, insuros n pro-
longcd period Of comfortable monetary
. conditions.
Other reasons OF n general character
/ which can he suggested for refusing
longer to contemplate the future wholly
with forebOdings are contained In the
financial and business situations. The
lowered price level. not only of securities
hut of general prices. is IA price level Of
safety, not of danger If the wages of
labor have not come fown 10 the condl-
tons capital has to meet there IL an
unquestonable tendency toward increased
efficiency OF labor resulting froA the large
reduction Of employment. and this Is
equivalent 10 some lowering OF the wage
scale. Indeed. heightened labor efficiency
Is much more desirable achievement
than lower wages from whatever angle
the labor problem IL considered. In
creased production il more important than
lower costs Quantities of eNchangeable
commodities and goods are what man
kind needs chiefly for economic progress.
II cannot be said that imitation liz alto
! gether out of values In every direction.
but a great deal of uusoundncss has been
eliminated from banking and business pO-
sitions by liquidation and contraction
Moreover, the vision OF hard times must
have taught some lessons which will dis
close themselves in an increased practise
| Of ecousmY and thrift and lcssening
| of extraNacance when trade and Industry
recover from depression
so much for ono side OF tho economic
reckoning. On the other side there are
"a