New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-02
Chicago Banker Thinks
Lack of Liquid Capital the
Dominating Feature.
GRADUAL CESSATION
OF SPECULATION
Production and Economy Will in
Time Cure What He Calls
Worldwide Disorder
ny GEORGE VI. REYNOLDS.
President OF Continental and Commercial
National Bank. Chicago.

National Bank. Chicago.
Lack of liquid capital is the dominating
feature the world over at present This
condition is attributable primarily TO the
conversion OF liquid capital into fixed lii
vestments and TO private. corporate and
governmental extravagances. the worst
form OF the latter being due to wars and
preparation for wars. Being country
yet I'm the making. we have at least one
advantage in overcoming the difficulty.
namely. superior natural resources the
development Of which serves to stimulate
production. but I'm other respects we labor
under greater disadvantages than DO
other countries. our currency system is
deficient. railroads are hampered by n
ability TO raise funds. trust agitation and
Investigations impede progress. and the
new tariff is in an experimental stage.
The foregoing are the facts, bat they
should not produce undue alarm for there
has been such orderly liquidation and
gradual cessation of speculation in land,
commodities. stock exchange securities
and worthless promotions, as to eradicate
the causes that lead TO panics. The lndl-
Gator does, however. point to period oi
readjustment We must admit that, or
deceive ourselves. and denying the exist
ence of a thing begets inability to discover
and apply remedies.
After fifteen years Of unprecedented and
almost uninterrupted prosperity it is log
ical TO expect some recession in trade
but we are apt to overdo pessimism as the
pendulum swings backward, and therefore
this is the time TO exhibit calmness ana
determination. lest we become bewildered
and falter i'm solving the problems that
confront US. Production and economy VIII
i'm time cure the worldwide disorder; the
difficulties local to this country are IN
process of treatment The currency Dill
amended and improved. has been passed
and it removes che of the principal causes
Of uncertainty. 1t provides elasticity by
making the commercial assets of the ma
ton available as basis for currency
and a more scientific method of Issuing
currency has never been devised
We all remember the vehemence Win
which shippers fought advances in rates
asked by the railroads several years ago.
The best information Obtainable indicates
that there has been change Of sent-
rnent on this question. Shippers, espe-
cially the larger ones. say they now favor
slightly increased compensation. because
the carriers expenditures for labor and
equipment have been raised 20 a point
where net revenues are no longer suf-
fcient TO maintain the properties and pay
bond interest and dividends.
Next to new banking and currency
system, this is the most important ques-
ton affecting the commercial and indus
trial life of the nation. and il is greatly
TO be desired that serious complications
shall be avoided by granting reasonable
measure of relief
The Sherman Law Settlements.
DISPATCHES from Washington a few
DAYS ago contained the reassuring infor-
nation that President Wilson and his ad-
visers have taken a comprehensive view
of the subject of the investigation and
prosecution Of corporations. and decided
70 settle cases involving infractions, or
supposed infractions, Of the antitrust law
in an amicable way where possible. The
announcement of a determination to APP
ply the principles OF negotiation TO d.f-
ferences between the legal department of
the government and the corporations has
been anxiously awaited for a long time,
and the promised respite from what
seemed TO BIZ a ceaseless airing OF dis
putes in the courts will certainly afforj
opportunity for tine business men of the
nation to meet the changed conditions
arising from tariff and currency legisla-
ton. This action displays a quality Of
craftsmanship that deserves the commen-
dation of every patriotic citizen. The
American Telephone and Telegraph Com
pany settlement under this plan was re-
ceived with favor.
The tariff law has not been in opera
ton long enough TO really determine by
actual test whether it's influence Will be
for an upward or downward movement IN
general business. There seems to be
lingering feeling of uncertainty on this
point but owing TO the great additions
TO the wealth OF the country, the absence
of speculation and the soundness OF I'M
derlyin; conditions, our ability TO sue
cessfully change the tariff is immeasur-
ably greater now than ii was twenty
wears ago. when the last attempt at
substantial reduction was made.
With readjustment under way, the stu
alton is simply one that calls for fair
ness. patience. conservatism and courage
The practice of these virtues by govern
ment officials and private citizens VIII do
far more TO promote the future suprem-
acy and stability of our country than is
generally realized.