The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-05

there should be trouble There mas III
particular been too much business IN
whicl( the production and distribution or
goods and commodities was facilitated by
too large an amount OF money borrowed at
the banks in proportion to the amount or
the traders capital.
Forward political influences Of the last
year may best be dealt with In the light
Of further events as they occur. a brlef
summary Of the political achievements OF
1918 shows. however, that much dcsir-
able progress has been made from the
unknown to the known. IL progress which
cannot fail to be helpful in the business
and banking community, where nothing
paralyzes effort SO much as uncertainty,
and doubt. The Administration itself Is
no longer an unknown quantity. Much
that IL known about II does not appeal
to the conservatism which Is tho es-
sence Of sound business and sound finance.
but nothing Is more likely than
that the extreme OF political revolution
has already been witnessed. The spec
tacle of depressed business and idle labor
invariably has n SOLDERING effect on po-
litical passion for change In the fashions
of economic effort.
Tariff and currency questions cannot
be considered as settled, but the enact
ment Of tarif and currency legislation
clears the way for such favorable posi-
bilities IN 1914 may contain for values
II the voters abide by the new tariff
schedules business can undoubtedly adj
just itself to their basis, although the ac-
coInnodtton must be attended by enbar-
easements which will amount to more
than annoying Inconvenience. IL the new
banking and currency system IL placed
by President Wilson under the contrNl Of
a Federal Reserve Board constituted OF
able and courageous men, the financial
facilities which It provides may contrib
ute some stimulus to recovery in BUSH
ness and securities when "A permanent
upward trend develops. but its full use
fuiness can hardly be demonstrated I'M
Ill q marked degree OF trade and indus
trial expansion has been attained
Neither taiiT revision nor any other
legislative enactment Will lower the cost
OF living. Nothing will do that as long
as people persist In the mass 10 prefer
"A city existence on the border line of
poverty to competence on the farm but
the material reeds of the American people
can be more easily mnistered TO IT
politics be taken on n more constructive
form. An opening Is presented by the
application OF the Eastern railroads for
permission to make AN advance in freight
rates which. although moderate. would
enhance Their credit decidedly and en-
able them 10 raise the funds with which
20 continue the provision of transportation
facilities on which 40 much American pros
perty has always depended. Another
opening will be given in the legislation
proposed for dealing with the trusts So
called. and 1t is here perhaps that the
most suspicious political portents are dis
Icernible There ~ undoubtedly going to
/ he new law making by Congress cstab-
Fishing Government control and regulation
lover Industrial and trading corporations
| png,aged IN interstate commerce, but the
spirit in which it is undertaken will de-
Itermine whether or not the legislation
Twill he beneficial or the reverse. The
!happen!cEs Of very recent weeks are OF
good augury in this regard.
| Peace In the "War ON Business"
| On the political side and on the bust
ness side testimony has been given of
| an approach to agreement and under
] standing. which Is a token that what has
been called the war on business waged
| In the past decade Is ending In an honor
able peace. Politics at last recognizes
| the difficulty Of framing statutes TO Sc
cure that future of equal economic OPP
portunity which the people have right
| fully demanded. Business recognizes
what the popular determination has
meant and is no longer prepared to con-
test for the logical supremacy OF an
| economic theory as to the merit OF con-
lccntrated corporate combination and con-
!ccntratcd consolidation OF financial power
There Is room here for the arrangement
OF a long lasting treaty between politics
and business which will consist less in
legislation than in the development OF a
mutual understanding. When mems
minds meet in such way as has been
indicated by the arrangements which tho
! Federal Attorney General is now able to
effect out of court for the reorganization
of corporate enterprise and conduct TO
conformity with the spirit OF the inter-
! state commerce laws more than the be-
g!nnngs of a reconciliation between bust
ness and politics has been made. The
| most signal occurrence in this category
was the retirement announced on the
| new years first business day OF the men,
bers OF the firm of J. r. Morgan & Co
| from about score and half OF rail-
| road. Industrial and banking directorates
As might have been expected this ac-
! ton met with prompt Misrepresentation
| In malicious quarters. but II cannot fail
| to be publicly regarded as an open ac-
ceptance by financial and business lead
| crs Of the conditions which will determine
the future of corporate endeavor. Prob
ably there will be legislation against
| what is called interlockinG directorates.
but the Morgan statement shows that
such legislation is hardly needed to end
a situation which had provoked increas-
ing public discomfort. There was reason
| a decade and more ago for the establish
ment OF closer and friendlier relations be-
tween various business and banking In
terests, but those reasons no longer have
controlling force Furthermore the Nor
gan announcement Is token of com
prehension by what is called big bust
ness" OF the essence OF the public protest
which has been responsible for so much
political disturbance. protest which
could only Intellectually and disastrously
frame itself in new laws, but was directed
against the inordinate concentration Of
mi ul nd rrI al