The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-23

| corporate bonds ana public obliGatione
Otherwise the slackness Of investmen
Inquiry has matched the inertia Of tn
stock market and the irregular dulnes
OF trade and Industry. About the easies
securities to sell to-day seem to be thos'
issued by our various governmental sub
| divisions. especially the bonds Of munici
palities. Unless one has paid some at
| tention to the subject one In astonishet
at discovering the increasing proportions
which Government financing bears to al
new security promotions. A recent tabu
| iation OF figures shows that from 1906
| to 1913 the total amount Of public obi
| cations In the United States increased
by more than $500. 100000 to an aggre
gate Of $3.50, 100000 last year. Altogether
in the years from 1906 to 1913 the out
put Of public securities amounted e
! s5,165.000,000. or not very far from hall
| AZ much as the total Of corporate hnan
cling In the same period. The long rang,
economic aspects OF these figures are
dsquieting. The public expenditure de-
| noted represents an economic waste fol
the most part, as the drain on capita
| supplies IL not drain for productive
purposes. Nevertheless without looking
from this exhibit a conclusion propi
tious for values Public enterprise o,
the sort spells employment OF labor and
consumption Of materials. This means
bug ness and II cannot be doubted that
very considerable contribution to the
maintenance OF trade and industry ID
being made by the use OF funds for wha,
are called public improvements.
II could be wished that in other re-
spects even such qualified satisfactions
might be dscerned in public affairs. The
outlook for the years business seems to
depend far more than 1t should on the
vicissitudes of politics How permanent
change for the bstter can be wrough,
In the field OF values by a constructive
turn OF domestic politics Is a question
Our fortunes are inextricably bound up
with Europe's. AMI all the foreign factors
which have been expressing themselves In
European Industrial depression and trade
contraction are likely to impede recovery
here still, when our huge resourceful
country. populated with the most energetic
race in the world proceeds to move
forward II communicates powerful i'm
pulses to all other lands and there 10 every
indication that at some signal OF politics
American enterprise could become most
industriously progressive.
To tho extent that our polttics has
helped to cause contraction and depres-
sion OF volumes and values and has been
a restraint on improvement the impede
ment Ia not betokened By Issues Of our
foreign relations, such az arc contained
the Mexican imbroglio The business
problems OF politics have been posed BY
the programme Of domestic legislation
ana administrative action which has been
Shaping ever since a year ago. Doubtless
the unsettlements of tariff revision could
be forgotten as restraining factor on ac-
count or the prospective benefits OF the
inomentous measure OF banking and cur
rency reform which was enacted last
year. but IL has not been any one feature
OF the political programme which ha.
heIped 10 fetter American enterprise II
mas been the general harassment of bust
ness by political projects. Of Interference
with business activities illustrated in
Government law suits and in the pro-
posaI OF new laws demonstrative OF a
triumphant radicalism altogether lacking
=" comprehension or what constructive
business ofrort costs This il what ba.
made politics an adverse influence. and
signs that retreat from the extreme OF
raulcal advance was under way would
probably DO translated promptly into
terms of business forward march.
for PROOF II is only necessary TO OBJ
serve the painful anxiety with which the
determination or the Eastern railroad
rate case Is awaited. There Is some room
ior criticising the notion that the world
Uade Is hanging on the Interstate Com
ln' &c Commissions decision, but the en-.
n'' American business community is an.
paEently persuaded that concession OF A
principle which would permit the railroad
rate structure to adapt itself to the cir
cumstances OF the railroad Industry wouia
release dormant economic energies from
All restraints Too much expectation
may be hanging on the outcome of the
rare case but the expectation itself can.
not be doubted. IL was strikngly dem.
- Ia t,tr, %
market 10 strength toward the end OF
last week, when railroad shares rallied
prlskly on further limitations that Presi-
uent wilson would be disappointed II the
interstate Commerce Commission should
rule against the railroads Only n few
weeks ago the Presidents interest IN
The matter ELECTED from the commission
q statement of intention to use all possi-
bic despatch In reaching a decision, and
the latest exhibition OF the Administra-
ions concern was promptly construed by
Wall Street as encouraging the view tina,
me railroads were winning their hard
hrht for Justice.
The prompt response Of rising prices In
the stock market on an expansion OF trad.
ing was no surprise to observers who had
noted lately the tokens of Il sold on,
condition and the evidence that stocks
would be found in scanty supply II any
extensive ana important demand for them
should appear. As corresponding posi-
uon exists In commerce and manufacture
the state of the stock market could DOR.
tend swift general business recovery
If assurances OF constructive instead o,
destructive politics were conveyed to the
business community by the Official tighten,
ing Of the burden Of oppressive regula
ton OF rates which the great transporta
ton Industry has had to bear