The Washington herald., 1914-12-27
Business and LeTisIatiOn.


ing factor in ali plans for legislation at the present
session of Congress is the business situation.
Doubtless the business situation depends in turn,
to great extent upon the war Developments in
Europe. If signs of peace should become strong
tomorrow, it would be reasonable expectation
that business-in the United States would improve
decidedly. There ought to be, at any rate, an in
stantaneous turn for the better in our commodity
markets. We, are inclined to attach some import
ance to the seeming indications that a union OF
the Balkan states is in process of formation
against Austria and that the Austrian people them
selves getting tired of the war. Contrariwise,
the warlike determination of the other combatants
unabated; and as we look at it there is moth
ing that canereally be called break in the war
clouds
Meantime, although business conditions in our
country are, perhaps, better than they were a
couple of months ago. they still unsatisfactory.
Indeed, it must be said that in some respects the
pace of business, which was accelerated shortly
after the election, has again slackened 1t is plain
that the country is still in state of business
rest and timorousness; and while it is in such a
state the people will not favor the passage of any
legislation that will exercise further injurious
influence upon business affairs.
We think that there has taken place in the busi-
ness world something of the same sort of reaction
that has taken place in security markets after
the display of strength following the recent re-
opening of eur stock exchanges. People say
ing that while the fear of panic and ruin has disap-
peared it is still dangerous to make plans and to
go ahead with enterprise at a normal rate while
the war in Europe is kept up. Thus, unemploy-
ment throughout the country is about as great at
the present moment as it has been at any time
this year. Occasionally mill or factory takes on
a few more hands, but this does not often occur.
Certain companies engaged in the business of
manufacturing railway equipment are beginning to
prepare for the execution of the larger orders
which they hope will be placed by the railroad
companies the result of the favorable action of
the Interstate Commerce Commission in the rate
case But the railroad companies say that whereas
their chief trouble up to the present time has been
their allure to show adequate amount of net
earnings, their trouble is now that gross earnings
are heavily falling off.
In New York City the report comes from
authoritative sources concerning business in the
great retail stores there that the Christmas trade
was off about 10 per cent. The heads of many of
these stores say that the number of shoppers was
up to the average and the number of packages sold
the same, but that the amount of individual pur-
chases was smaller, making loss in the total
volume of business. In other words, just as many
went to the stores for Christmas buying
but they spent less money per individual than in
a normal year. 1t is also said that people bought
about the same articles heretofore but selected
a cheaper quality.
Such improvement as has taken place in the
cotton trade is mostly in the increased exports of
cotton. There be no more pleasing develop
ment if this improvement is continued Still, do
mestic cotton mills do not seem to be buying raw
material at any greater rate and the entire cotton
trade is confronted by the fundamental proposition
that probably 100000 bales of cotton-almost
one-third the, entire crop-wil have to be carried
over to another year from this years crop If the
requisite amount of capital be obtained to take
care of the surplus, all will be we'll But there
seems to be some doubt whether the requisite
amount of capital can be obtained to carry" cot
ton as speculation at ruling prices.
1t is said that one matter that is hurting US
good deal is the losses that we are sustaining in
our trade with neutral nations, such as Italy and
Switzerland, Norway and Sweden, which are TAX
ing part in the war but which cannot buy goods
freely because of the interference with neutral
trade by the warning nations, principally Great
Britain. All these neutral nations have a reason
able fear that they too may be involved in the
war before it stops and that it will be we'll to put
navian countries for instance, are desirous of ae
cumulating large stores of foodstuffs Italy wants
to have hand much greater quantity of cop
per metal than she does normally. 1t can be seen
at a glance that the policy which Great Britain
has pursued of placing obstacles in the way of pur
chases by these nations of commodities of the kind
described has intensified our business depression
The State Departments record shows that up to
the present time the British navy has held up BOO
ships carrying American cargoes to neutral coun-
tries The goods carried have been chiefly oil,
copper, -four, grain, meats and timed meats.
But apart from these special matters the truth
is that our people are economizing. They not
spending much money they normally do
Business suffers from the fact and will suffer from
it for long time to come; and while this is so
politicians if they wise, will cease troubling
the business world. We believe that those who
really deserve to be called political leaders
thoroughly understand the fact.