Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-07-18

81 0ltlOn OF mluQ IHTOuShOuI Liz
United States, and, perhaps no
where more in evidence than in WASH
ington, toward economy, desire to
make one dollar do the work of two.
while one is placed in bank to add to
the savings and earn interest.
With prices for comodities where they
are the only way to accomplish this
economical feat Is by going without
the things that the second dollar would
purchase, by prolonging the life of GER
tain lines of merchandise and by doing
without, where absolute necessity does
not demand expenditure.
And the merchant and manufacturer
must suffer. The economical streak is
in evidence in large cities and in small
towns.
Bank clearings, the barometer of
business, show about per cent de-
crease, outside of New York city, and
II per cent in the nations metropolis,
due largely to the decrease in stock
speculation attending the withdrawal
Of the public from Wall street, after a
fitful fever of speculation in war stocks
and specialties.
All statistics covering the progress Of
business, railroad earnings, clearings.
etc. are made in comparison with the
restricted activities of year ago,
when the production of munitions and
war goods had not started to swell the
volume of business.
Railroads of the United States have
quite generally shown. increase in net
earnings, but these have been attained
only by the use of rigid economies,
often too great for proper mainte-
nance of road and equipment. but often
forced as means of escaping default
on interest with possible court pro-
ceedings.
The railroads of the country need the
heavy traffic Of merchandise that at
tends prosperity to enable them to meet
all necessary expenditures and reha bill
tate themselves.
m-* !: ::
railroads in sections, but their execu-
ton is generally so centralized as to
localities of factories that hauls are
comparatively short and few roads
profit from transportation to port of
shipment.
Perhaps all signs fail in war time.
The iron and steel trade has always
been the barometer of business, but
for once 1t is not a true gauge. Pro-
duction TO go to 80 per cent of capacity
has caused no great satisfaction. for 1t
means that foreign orders are numer-
Gus, largely for engines of destruction,
while constructive energies in the
United States fail to give the usual
response.
Failures have been more numerous
in the commercial world and many
small business concerns have gone to
the wall. For the calendar half year
ended June 80 the number of failures,
1919. was the largest ever reported
and the liabilities were but slightly
less than for the first six months of
1908, the high-record half-year. For
the first half of 1914 the failures num-
bered 1859.
Wall street has been acting well. all
things considered. but here again it is
the stock of corporations making war
supplies that show special activity and
brokers find it especially hard to create
sentiment favorable to the rails. even
with great crops rapidly maturing.
European legislation is beginning to
be more important feature as the
governments engaged in prosecuting
through public loans and profitable
home investments.
Wall street hesitates, in high grade
investments, because OF the low pres
sure of business, the difficulty of rail-
roads in making dividends and the
rapid exhaustion and destruction of
the wealth Of the warning nations with
the uncertainties as to the end and
the erect before and after 1t Is reached.
The crippling of Europe to the point
of bankruptcy cannot be good thing
for the near future of the United
States, though with its great home
market and an entirely different state
of mind business should be greatly
improved once this feeling of uneasi-
ness and ultra economy Is dispelled.
Short term maturities on commercial
paper are favored by the federal board
in making of rates. But it is possible
months maturity, carry it in their
vaults for three months or longer and
then offer It for rediscount at the re-
gional reserve bank from the period
that it still has to run to maturity.
The reserve board especially favors aid
TO crop moving and country banks gen.
orally. BY using paper as indicated,
periods Of stringency. II they develop.
the bridging process is decidedly easy.
Because Of the ability to do this MEM
Der banks are now willing to lend over
the year, where formerly to October or
November was the limit. and 1t will not
be necessary to provide for increasing