The sun., 1918-09-16

try will discuss when they meet in ma
tlonal convention In Chicago one week
from to-day. 1t is one thing to curtail
loans to spectators and quite another
to reduce the volume Of bank funds
available for investment in mercantile
loans. The market for certain forms Of
commercial paper has been materially
broadened since the rediscount facilities
OF our new banking system were pro-
vided with the opening Of twelve Federal
reserve banks on November 10, 1914.
The discount market then created has
been since expanded with excellent re-
suits. The growth of the acceptance
system has been also a factor in making
1t easy for mercantile borrowers to
finance their requirements.
The banks have been careful to extend
necessary accommodation to such bor-
rowers in cases where It has been pos
sible to do so. But with the extraor-
binary Government borrowings the sup
ply of loanable funds has been reduced
to a point where It has been necessary
| for the banks to refuse accommodation
to enterprises which were not vital to
war making.
The Business Situation.
The country is doing a large business.
but It rs doing 1t cautiously. The aim
everywhere is to avoid the pitfalls Of a
war market and to guard against over
trading and the perils Of overlooking
with merchandise and raw material pur-
chased at high prices. With the Fed
eral Government using $500, 100000 a
month for war expenditures and loans
to its allles--this record total was
reached in August--it stands to reason
that the position OF many industries Is
wholly dominated by the utterly abnor-
NAL Government buying that has de-
veloped.
There is no telling how long these
conditions will continue or what pro-
portion of our industrial output can be
placed at the disposal OF private con-
sumers. The Government must be served
first until the war ends and the process
of restoring the world to a peace basis
is seriously taken up. This task will
be momentous and the probability Is
that American producers and business
! y
of restoring Europe's crippled industries.
This Is obvious. since the United States
Is the only country possessing the in
dustrial machinery to do the work with
and the credit facilities and the gold
reserve required for such gigantic
undertaking.
The crisis which has arisen in a settle
ment OF the wage disputes Of munition
workers brings up the question whether
II will not be necessary for the Govern
ment to take over some of these huge
plants. Under the provisions OF the ma
tional defence act the Government has
the right to take over and to operate
plants engaged on war contracts. In
extreme cases. It may be necessary for
the Government to apply the work or
fight" order to those employees who de-
cline to abide by the awards Of the
War Labor Board. II is evident that the
authorities will not permit then Govern
ment's work to be halted by recurring
strikes and that the President will resort
to extreme measures II this should be
necessary. in order to carry on the wal
work. One Of the large corporation.
has turned over its plant for the Gov.
, eminent to operate. and the probability
Is that other manufacturers will follow
suit unless a satisfactory adjustment
, of these wage disputes is arrived at.
Shortage OF Workers.
The shortage of unskilled workers ha,
e become so acute as to indicate that
Y further curtailment Of non-essential pro
: duction may be called for in order (,
= release the workers needed by the wa
= Industries. Plants now devoted to tn,
= production OF luxuries may be re
e equipped to produce war material ant
@ other products which the Government
requires The problem In one city wa
= solved by the action Of 1000 patrioti
p business and professional men In vo!un
4 teering for service In a shipyard en-
: gagged upon Government work. The ship
g builders. after finding 1t impossible t
: recruit workers in the ordinary way, ap
Z pealed to the city authorities on tn
4 ground that vital ship constructio,
. would have to be slowed down unles
q necessary working force could b
= quickly modified. This appeal was sue
q cessful and the yard was able to con
j, tinue work on a satisfactory schedule
although a portion Of the men volun
teered for only half day service.
The success OF important Government
work at Bethlehem and other centres o
u Industrial activity Is imperilled by con
slant labor disturbances and wage de
Ipands, which in some instances wonl
!, result in increasing the pay OF the work
u ers to 81 an hour. Statistics presente
e by the National Industrial Confetenc
= Board show that during 1.-THE first ST
II months after this country entered tn
u war 62s5,519 work days were lost I
&c essential industries by strike disturb
y ances involving demands for h!ghe
IS wages. reduction Of working hours an
!, union recognition.
ID Admiral Parks. chief OF the Burea
s. OF Yards and Docks. in testifying las
n spring before the conference committe
l. on the national appropriation bill sal
II that common labor a the Norfolk Nav
20 Yard. which received $3.50 a day befor
the war, now gets 40 cents an hour fc
l. an eight hour day and that the men RI
. ceive $40 for a ten hour day. Strikin
as were the startling wage increase
70 the most suggestive statement made b
l. the Admiral during this testimony wa
70 that the $40 now paid for what foi
u merly cost the Government $3.50 wa
= only 65 per cent, as efficient.
IF Speculation in Oh elk.
=, II Is clear from the Presidents lettt
y to the Bridgeport machinists that II
80 Government authorities do not intend
- be trifed with and that an effort wi
= be made to hold organized labor to 4
| nd IN oh he ,.,t