The Washington herald., 1915-01-01
Caldwell Hardy,
President Norfolk National Bank,
Norfolk, Va.

l. While most of the legislation passed
in the last two years was inevitably
necessary in order to clear up a generally
complicated business situation, which had
resulted from policies which were subject
to grave criticisms, it has paved the way
for the transaction of business on much
healthier and more legitimate lines, both
so far as individuals and public corpora
tiOns are concerned. This having been
accomplished, the assurances which we
have of a rest from political agitation
and business Legislation are to my mind
encouraging. and l look for a steadily
increasing trade recovery. The recently
announced increase ofRrates allowed TO
the railroads is the nj It important ad-
dition that could possibly have been
made to the restoration Of normal con-
ditiOns. the only regret being that the
decision was not suffi :iently liberal.
>. Continuation of the European war.
whether for six months or longer. will
naturally create continued demand for
foodstuffs, clothing, and other material
from this country, possibly ovcrstlmu-
lating business in certain lines and max
ing inevitable more or less reaction in
these directions as soOn as peace should
be declared. Anv-Pn elcipated improve
ment in trade conditions in this country,
particularly if we can open up trade
to South America and in other direc-
4 llOQE, ought 10 ItuuCe - Il HllllllllN Nlil
the effects of the reaction from a Cessa-
ton of European war purchases.
>. l anticipate permanent and lasting
benefits from the operation of the new
banking system. l think We shall con-
tinue to have fairly good demand for
money without excessive rates. The re-
discount feature of the new system will
always be a reliance against any eN-
cessivc pinch in the money market, but
should be avaiIed of with conservatism.
Experience only can demonstrate how 1t
will work but the assurance that 1t is
available will free every business COM
munity from the nightmare Of limited
bank accommodations, which has SO often
demoraIized business and helped to up
set trade conditions.
/. The increase in railroad rates ought
to place our investment securities on
much safer basis. and forestall any Sc
riousIy heavy European liquidation, with
the possibility that 1t may induce fur
ther European buying, due to increased
confidence among European investors.
While our country will get whatever
benefit is to be derived from the un-
I fortunate war on the other side, We
ought, however, not to lose sight of the
I fact that the terrible losses and de-
struction caused by it have to be paid
! for and absorbed, and eventually we
must expect TO contribute indirectly or
proportion of these.
Questions Asked Railway Men.
The questions submitted to the rail-
way presidents by the Evening Post
were:
What do you look for as the domi-
nant influences on railway affairs in
the coming twelvemOnth? Do you eN-
pect 1915 to be a good or a bad year
from the railroad viewpoint? What
should be the trend OF gross and net
earnings?
Is it not true that the enforced econ
omies OF the past eight or ten months
will cause unusually heavy purchases
of rails, equipment. and supplies during
the next twelve months? To what ex-
tent. in your opinion, has the railroad
situation in general been helped and
to what extent injured by government
regulation up to the present date?
What changes, IL any. should be made
/ in the existing system and machinery
I of rate-regulatiOn
Among the answers are the follow
4 ing.