New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-23
REVIEW OF The
WEEK in FINANCE
Slow Recovery of Business
Demands Freight Rate
Increase Soon.
MONEY EASE STILL
SHOWS TRADE DULL
Uncertainty from Tarlft Reserve
system and Proposed Anti
Trust Laws.


1,,imations as to the fate of the ad-
yanced freight rates filed 10y the taS'-
crn railroads caused violent nuctus
,ion in security prices last week On
....,o,,,ccmcnt of the formal postpone
MON, or the increases for six months
t,,r,bor there was a decline in pracu-
.,l,,. the entire list. Again, ON word
chat tho President had urged a SPEEDY
decision stocks advanced abruptly
,ofol again when this was denied.
T., the present state OF business VII"
.iens Of renewed activity so eagerly
,.uod q month ago not greatly m
,.,.oaeod this rate case may he consid-
o,.1 nc innortant to industry generally
nc - had been shown TO be to the s'o'N
,,orlet The principle Of fair return
n corporations subject to government
control is at stake. Railroads
have fair return If they are TO "'"No
,,,o,or earnings and TO he allowed W
rerrect proper financing. Niileo J"
,..oets are waiting on the orders 80
largely dependent on the roaos poS
rccts In the Executive Manson il 80
approciated that the prosperity OF '"'
conrtrv IS involved with that oil t"e
railroads. .,.,.
That il is to be a matter OF moi'is
,afore industry is at its normal Level IL
NOW more generally accepted. ouCN
case OF money as exists here anu III
r,,,,ono * 10 he accounted for oniy on
tho ground of small demand on CAPT.
tsl for general commercial purposes
IN This country there is added the
necessity of adjustment TO new coi'ul-
lions arising from the remodelled 'aiii''
the new banking system ana the anu
trust legislation now pending at wash
;neton. These may all be matters "i
time as is that great factor in good
wear. successful crops. but faForaOle
freight decision is undoubtedly SOME
thins that can be expedited.
Need Of Actual Pate Advance.
II would not Dc 50 unreasonable as
has been argued if the President dlu
express TO the Interstate Commerce
Commission his opinion Of the neces-
sitv for speedy action in arriving a.
the rate decision. The commission WAS
primarily created as an administrative
body. even though judicial functions
have since been added, 50 II IS FAR
from being hedged from Executive in
reference as is a separate branch IKE
the judiciary. In any event Whatever
may have been the conversation be-
tween the President and the chairman
Of the commission. announcement has
been made that # the railroads will do
! their part the commission Will come 10
a decision before the summer recess.
/ With present needs aggravated by the
I lean years that have passed, the com
mission, il is believed, must grant re-
/ lief in higher rates. in addition to
pointing out ways of eliminating free
services and of introducing economies
and efficiency.
Before crop moving time it is eX-
pected that the new federal reserve
system viii have been established.
/ The national banks have now practi-
cany all gone into the new arrange
ment. Many conservative bankers be-
1 lieve the result of the rediscount pro
/ visions will be innation but this is no,
expected to show itself this year and
until the rearra ngement is complete
! natural doubt over how it is 10 work is
expected to hamper trade
- Tariffs Effects Not Fully Felt.
| In addition, the new tariff is APP
parently due 10 cause more disturbance
, than has yet appeared. Already the
effects Of foreign competition are being
keenly felt in some lines. The needs of
the American market have not yet been
properly gagged. Much material sent
over here does not meet the demand
but foreign shippers should learn be
fore long what is wanted. Until the
November election it is not 10 be eX-
pected that extensive preparation will
be made abroad for production for eX-
port here. Should continuance Of The
policy Of the present administration 3e
assured next fall, or should slackened
demand in Europe make export 10 this
country necessary to meet overhead
charges. then the pressure of foreign
competition will begin 10 be felt az
near its normal strength.
The steel trade is apparently an in
dustry in which the foreign manu-
facturer is not greatly feared, and here
a positive advance is noted Rolling
mills are reported as gradually increas-
ing operations. and orders are gem
orally larger than had been predicted i'm
view OF the heavy increase last month.
The United States Steel Corporation is
receiving ten thousand tons a day more
new business than In January. and last
week was operating al ~ per cent Of