The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-04

general implications OF the vote received
particular stress from the unmlstnkable
symptoms Of reaction in such communities
OF former radlcallsm as Wisconsin and
oregon, where variety of bewlldering
constitutional changes were rejected, and
In Missouri where referendum over
whelningly defeated full crew railroad
bill The Wilson Administration has ad-
vertlscd that its programme OF lcglsla-
tive reconstruction OF business has been
practically completed. but while Il has
committed the country to unsettling ex-
periments. the public Is evidently. In a
mood to compel swift alteration or amend
mcnt IT the experiments do not work
well.
Trade and industry were hard hit by
the war. especially as even before the
war the factors OF domestic politics had
betn contributing to contraction and de-
preston. But tho ornamental sound
ness OF American business and its essen
tial vitality have been proved in the war
crisis and In one department. OF activity
a big forward movement Is under way.
The country's foreign trade bids fair to
attain unprecedented Dimensions in the
coming months and yield an export bal
ance which. when added to the funds
conserved through the cutting of OF a
large total OF obligations Customarlly
accumulated abroad annually, will prob
In the International money market
The railroads have suffered In the de-
preston OF general business. but thew
have learned lessons as TO tho pussihlli-
ties OF economy which will be valuable n
tn" time " restored general prosperity,
and the Interstate Commerce Commission
has made n big break with the past pol-
Icy OF oppressive Government regulation
OF corporate affairs, The Interstate Com
Werce Commissions change OF attitude
Ia unquestlonably related with the change
or political sentiment which has been
widely evinced. but In reversing itself In
the Eastern rate case the commission took
ana gave 20 all other similar bodies
cue ts TO the new treatment OF invested
capital which public opinion would eX.
uect.
Underlying everything else In the Geo.
nOmIc catalogue is the wholly SltisflC. nry
oltturn ~ last years agricultural season
Two bumper crops were raised. the pro-
duCt'on OF cotton and wheat breaking all
records. Cotton prices have been hurt
by tho trade ana Industrial dlslocations
Of the war but Il II probable that before
the accidental surplus OF the staple In
absorbed cotton will sell at figure
which will make at least a good average
for tho crop. Tho total value OF all
American farm products In 1914 has Just
been placed by the Agricultural Depart
ment AZ se.s73.oO0 600. an aggregate OF
Ssa 900 900 I'm excess OF the previous roc.
ord amount IN 1918. and this huge sum IL
reached with the inclusion OF an unprec-
eicated yield Of cotton At prices below
the cost OF production. our greatest in
dus'ry Is agriculture, and these figures
spell agricultural prosperity IN the main
hut what Is more the country as q whole
gets the benefit OF IA colossal quantity OF
Agricultural commodities
The signal event OF III money market.
apart from the recovery OF financial
equilibrium in tho las; quarter OF 1914,
Was the est4bli shmeut OF the Federal re-
Sc We banking syst m. This will disclose
defects as time goes on. but they can be
rcmedi"d. At present, and although the
STATE Of trade and finance Sc ms 20 make
the Federal rserve banks a tifth wheel In
the financial coach. the Inauguration Of
the new system has render q valua BILE
service In broadening the basis OF con-
tidence and In contributing directly 10 the
enlarged clplcities of thc money mark. I
20 accommodate general business recovery
ana expansion.
Money rates have fallen 20 l-vels Of ex-
trcmc eAse ald still cheaper money IL In
prospect. From war panic heights which
threatened 70 pump every dollar Of Eoh
out OF the country foreign exchange has
collapsed until all forms of remittance
are IN our favor and the iudica ions are
that before long our bankers will he IN a
position whera they can command gold
importltionS /; they are either necessary
or eXpedlcnt. The New York Stock EN-
change, the Country's primary securities
mllk-t. has reopcued with certain pro-
teCt.ye restrictions after a suspension
without pT-rcdel; and the dealings since
resumption have proved that the Euro
pcan holders % several billion dollars
worth OF our stocks and bonds are any
thing hut DESTROYS OF liau.datlug them
Could any review or the husiu IS si'-
uatlou and prospect NJ tho outse; OF the
new year conclude more htly than by =
reference 20 the eyideHc- afforded, by tho
tack Of foreign selling pressure In our
stock market, OF the judgment which dis
ress,l Europe has formed OF the Amer
.Can outlook