The sun., 1918-09-02

This does not mean that the response
will not come nor that the incentive
for broad speculation has been over
looked on the contrary. 1t Is probable
that speculation will broaden as soon
as conditions In the money market
justify the enlargement OF the fund
that is available for the financing Of
speculative undertakings.
Conflicting Movements.
Were It not for the extraordinary
Government borrowings and the I'M
certainty as TO the effect Of the sug-
gested revenue law upon general bust
ness Wall Street would probably now
be in the midst Of a great speculative
campaign. The fact that a rising
stock market has been SO long held in
check and that the stock market
traders have needed the warning Of
bankers as to the necessity OF restrict
ing speculation has strengthened the
technical position OF the market in a
material way. New York has shown
greater moderation than London ever
since the counter offensive by the
allied forces began, for there has been
scarcely any response here to the
striking war news OF the last fort
night. The situation would have been
difficult to hold in check had 1t not
been for the perfect cooperation be-
tween the banks and the arrange
ments made at the time Of the first
Liberty Loan f1otation to control just
such a situation as has arisen In the
money market.
Our Enormous Gold Reserve.
Inasmuch as the gold reserve OF
this country forms 1.-The financial
backbone Of the entire allied group
it is highly important to continue
the measures which make for the
strengthening Of our bank position
and the safeguarding Of the money
market. The combined statement OF
the twelve Federal Reserve banks,
covering conditions as of August 20
showed gold holdings of s2,003,0 51 900
This was IS per cent. of the country's
entire stock Of gold, which at the
opening OF last month stood at $3,0S0,-
767,S01. This shows the success OF
the Federal Reserve Boards effort to
concentrate in the Federal Reserve
banks as large portion Of the coun-
try's gold reserve as possible in the
effort to provide for any emergency
The Federal Reserve banks within q
year have gained $63o.832, 900 in gold
holdings, but since Federal Reserve
notes show an expansion, of $l,459.'
7sS,000 II is obviously necessary fol-
the banks to build up their gold re-
serve in every possible way. Th'
Bank OF France last Thursday re-
ported the largest total gold reserve
in its history OF sl.0S7 100000. Thi:
lie just about half the gold holding:
Of our Federal Reserve banks and re
fleets the effort of all the great state
banks Of Europe to conserve theil
gold supply during the war period
The American holdings are, however
much the largest in the world and will
be OF the greatest service in this coun.
try not alone during the war period
but in financing the reconstruction o.
the worlds industries after hostilitie:
are at an end.
Improved Railroad Conditions.
The railroads are making better
showing and If the increases reflected
will be a material enlargement o.
freight and passenger income to offse
the s2s0,000, 900 loss sustained by th'
Government during the first 81,
months OF Government operation. The
report of the Pennsylvania lines wes
OF Pittsburg showed an increase Of
almost so per cent. in July freight
revenues, while passenger income en-
larged 25 per cent Most OF the grea
roads are expecting to make a mucf
better showing. notwithstanding thu
higher operating charges in Conse
quence OF the increased rates which
became effective toward the close o
June. A few roads, Delaware anC
Hudson among them, showed a small
falling off in passenger revenue dur
ing July, in response no doubt TO tn
sharp advance in passenger rates
other roads have shown no decrease
! whatever and the probability is tina
in the United States, as in England
the advancement OF passenger fare
will not force much II any reduction
in travel.
Increasing Wages.
But the railroads, as all other larg'
employers of labor, are confronted
with a constantly increasing wag'
scale which has been forced upol
them as result OF war conditions
The Board OF Railroad Wages ant
, Working Conditions recommended t
the Director General OF Railroads las
. Thursday increases in the pay of 300,
900 railway clerks and laborers rang
ing from Is to 25 per cent. Thes
recommendations were taken undo
sdvisement and In all probability viii
he granted very soon, with the result
: that tho payrolls Of the great system
: viii be immensely expanded. on tn
day that this report was made tn
, president OF the Public Service Rail
way of New Jersey told the Board o
, Public Utility Commissioners OF tina
State that unless his company va
permitted to increase passenger fare
from Ave cents TO seven cents a re
ceivtrship was inevitable Mr. Nc
, Carter contended that there would b
no alternative, since during the frs
seven months of the year the com
pany had failed to meet its expense
by considerable sum and that III
increase in wages made effectiv
August l by the War Labor Boar
I iumn out Of he'd reach for a towel