The sun., 1918-11-18


tries board. with the idea Of safeguard
| ing American business against the vicls-
situdes of tho readjustment period.
Employers are having tho time OF
their lives in making wage earners
realize that $50 n week with pay and
half for overtime IL not the normal
wage for partially skilled labor In peace
times. With labor keyed up to the high
nay OF rush work. It is becoming nee
essary for the Government TO regulate
the cancellation OF war contracts, 30 as
to release only the number of workers
who can be quickly employed in pro-
ductive pursuits.
This is a difficult task. but II offers
the only solution OF the problem in
volved In returning n multitude of wage
earners to the places they filled be-
fore the war emergency made 1t neces-
Sary for the country to speed up its
huge military machine
This work of recognizing American
industry from n war basis to the level
o; peace times will be largely directed
by the 200 or 800 81 a year men whom
the Government is releasing from their
extraordinary Washington service. Every
belligerent country has a similar prob
lem to solve. but the process here will
be more difficult than IL is in Great
expansion and the high tension of
our industrial life. The move by the
War Industries Board to raise the re-
strictions limiting the production OF va
rious Industries has put new life into
forty or fifty branches of trade which
a fortnight ago were facing a partial
shutdown.
Hundreds of building projects that had
to be postponed during the war period
Will be taken up as soon as the reuul-
site financing can be arranged. The
great issuing banking houses that would
not undertake new flotation so long
as the Government was forced to borrow
heavily from the market are arranging
TO bring out important loans in the
near future. Several Of these opera-
lions have been provided for and from
the quick placing OF the undertakings
1t Is evident that the loans will find
a ready market.
The Public's Attitude.
The public is not yet willing to speculate
IN any large way. This Is because the
shifting of industry from a war basis
to a peace level involves too many un-
certainties for the average man to gran
pie with. Had the Stock Exchange re-
manned open last Monday there would
have been good deal of bullish en-
thusiasm manifested, for the brokers
had hundreds of buying orders to exc
cute.
With its depleted clerical force. how
ever. Wall Street was not in a pasition
to handle the immense volume of bust
ness the wire houses received from out
of town clients. Most of the buyers re-
tired, however. when 1t was found that
the exchange had closed and that the
its attitude concerning the inadvisa-
biiity of enlarging the volume of loans
upon speculative collateral.
notwithstanding this caution. how
ever. the market at no time during the
week developed real weakness. and
about all the selling there was took
place in the war order industrial shares
which led the spectacular advance in the
autumn markets of 1916. The losses in
these shares were largely offset by the
advances in the peace stocks. including
the seasoned railroad securities
The irregular price movement reflected
the confusion of thought as to just what
would be the history of the transition
period and to what extent II would be
possible for the Country's business in
terests to readjust their affairs to the
new order of things, without derange-
ment of trade or labor unrest. That the
strong points in the situation were
thought to have counterbalanced the I'M
certainties was indicated by the relative
firmness of the seasoned dividend shares
which continued In good demand
But the most encouraging sign was
the continued absorption OF good bonds
by genuine investors. This inquiry
broadened materially In response to gem
eral buying of nature which suggests
that the reinvestment of the semi-annual
dividend fund will be more of a factor
I'm the December markets this season
than has been the case in the closing
month OF any year since the world war
began.
High grade bonds are being taken In
not given Wall Street anything like the
broad markets of 1909. hut It has re-
suited in the unemployment of large sur
plus funds which the public six months
ago could not be induced to part with.
The investment demand for municipal
bonds has carried various issues to n
new high price level for the year, with
the demand sufficiently broad 70 !rd!-
cate that new loans OF this class will
find a ready market If offered in the
near future
The investment inquiry Is much
stronger than it was. with signs that
the public is turning to long term secu-
rifles in the belief that these securities
under conditions OF world peace. offer
more favorable opportunities for the
profitable employment of surplus funds
than would temporary obligations put
out by municipalities. railroads or indus
trial corporations.
Reduced Taxation.
An important influence has been the
decision of the Government to abandon
its Original programme Of war taxation
and to reduce to $4,000, 000, 900 the
amount of taxes provided in the revenue
bill. This downward revision will mean
that the country may be relieved OF the
burden or paying eXorbitant taxes dur
ing the reconstruction period when our
business men are labOring as best they
can to place their affairs on peace
footing, There will he no objection to
continuing the loans to the Allies, which
Secretary McAdoo asserts would he not
only friendly act, but also n policy of
enlightened selfshness." But there Is
every reason to hope that these advances