The Washington times., 1917-03-25
Crisis Reflected by State of
Doubt, Hesitation, and
Mental Confusion.
BUT SITUATION is ACCEPTED
Mobilization of Industrial, Fl
nancial, and Military Re-
sources Heartily Indorsed.

tai confusion, but with IL all there
was a resigned acceptance OF the fact
and hearty Endorsement OF Industrial,
financial, military, and naval mobil-
ization.
The week was ushered in by the
sinking of three American vessels by
German submarines This malignant
act of g pirate nation cornered by the
might of the world driven to
righteous wrath. aligns against her
the most powerful country financially
and the strongest potentially In physi-
cal resources. It Is not to be. expect
ed, perhaps, that the Berlin govern
ment in purblindness OF desperation
should fully realize that such Is the
case, although there may be some dim
consciousness that one enemy more
will tend to hasten the end of the con-
fiict.
The effect here is sobering. Until
President Wilson decided to advance
the date of the assembling of the
special session of Congress, originally
set for April 16, little more import
ance was. attached to the latest sink
ings than to those that had gone be-
fore, at least, so far as their precipi-
tating the conflict was concerned.
They only added to the already for
midable accumulation
FinaneIers Indorse Proposal.
The new call to Congress. however,
Indicated that the remarkable patience
of Washington had been exhausted at
last. Congress will meet April 2. The
President will address It, and the
legislators are expected to declare
that q state OF war exists, possibly to
make a formal declaration OF war.
rhe Administration is understood to
desire that the formal declaration
should come from Berlin, thus giving
us the psychological advantage of
kaving been attacked first
But whatever the formalities may
be, there Is already war between the
United States and Germany. All the
energy of the nation Is being thrown
into the preparations. The bankers
and the navy will play the star roles
in the tragedy. Financiers already In
dorse with enthusiasm the proposal of
the governor OF the Federal Reserve
Board to issue bonds to the amount of
81 500, 900 900. OF this sum one-third
will be reserved for our own use, and
the balance loaned to the allies. The
tremendous store of gold here gives
practically unlimited means for credit
expansion. The money market will be
strengthened. The already large In
dustrial expansion will be extended.
although II Is not to be forgotten that
IL is one thing to sell goods to a for
eeign fighting nation and another to
sell the same goods to our own.
Sell to Government Lower.
This difference was brought home
to the Industrial world this week by
the sale OF upward OF 45,500. 900
pounds OF copper to the Government
at something less than II cents a
pound, when the market price OF the
red metal is In the neighborhood of
81 cents. The steel companies are
credited with planning a similar act
of patriotism, despite the fact that
the demand for steel products is acute
and that prices are rapidly mounting.
Other commodities will be sold to the
Government at much lower rates than
the allied powers have been paying.
A consideration OF these possibili.
ties did not a little to dampen the de-
mand for the Industrial issues in gen.
eral In the stock market, and the mu.
nitions and equipment stocks N par.
ticular. as soon as 1t became clear that
hostilities were inevitable. At the he.
ginning OF the week there had been a
brisk upward movement in the mar.
ket. The first three days were mil.
lion-share sessions, the first since
early in February. Advances of 5 to
10 per cent were made in the interval
and fhaTa
spread feeling that a real bull move
ment was under way. Public interest
was revived, and outsiders, I'm n small
and rather timid way, participated in
the trading.
Railroad Department Neglected.
On Wednesday, however, late in tn,
day, realizing sales appeared in good
volume, a movement which was car.
ried into Thursday and something
like half the gains were lost. Still
there was no satisfactory evidence
that the upward movement had def.
nitely come TO an end. It Is probable
however, that the market will lag un.
til Congress meets. After that the
general enthusiasm engendered by
the spirit OF war preparations stand.
as good a chance at least of starting
things going again, probably better
than the reverse.
The railroad department remained
neglected for the most part. despite
momentous events In that direction
The Presidents appeal in the strike
situation received the most crafty
| ing response from the railroad man
ayers, who, with an admirable show
| OF patriotism, yielded everything the
brotherhoods had been demanding sc
the Government would not be embar
rassed in this crisis.
Following this there came the de
cision of the Supreme Court uphold
| ing the constitutionality of the Adam
son law, thus doubly fortifying tn,
position OF the railroad employees will
respect to the eight-hour law. TIL,
| logical sequel was the appearance O.
the railroad presidents before the In
| terstate Commerce Commission to asl
| for an increase in freight rates Il
compensate them for the loss of som,
$50 OOO, 900 to $50. .OO0, 900 a year entail
ed in the strike agreement.
Commission Expected To Comply.
The demand for an increase of II
to 10 per cent. There can be little
question but what the commission
will see its way clear 70 meet the
,oads In this matter. II not, the
roads will go to Congress. Washing