The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-05

w II II i n m = " - ~ ~
the United States to the Governments
allied with 1t since this nation joined
the list of belligerents.
Basic Strength.
In various ways, therefore, the war
has demonstrated the vast financial
resources Of this country. No one
four years ago would have thought 1t
possible Tor our Government to have
financed these stupendous burdens
without Gripping industry and 81 dis
turbing the money market AZ to dis
locate business and lead to disastrous
failures. But the record Of July In
solvencies showed the smallest num-
Der reported during any month for
eleven years, with the lowest aggre-
gate Indebtedness involved since May,
1910. Furthermore. this nations in
ternational trade balance-meaning
its, excess OF exports over imports
during the four years Of the world
war amounts to about 100000 900,
or as much as all of our favorable
trade balances amounted to during
the generation before the war began.
This showing Is very extraordinary
and accounts for the exceptional
strength Of our bank position as EN-
phasized by the $92,00O,O0O gain in
resources shown by the S.134 member
banks comprising the Federal Re-
serve system between December 81
and May 10 last.
The Nations Progress.
This means that the country is
going ahead fast, war or, no war The
crisis through which we are passing
is forcing US to undertake an immense
amount Of reform work in the effort
to insure for the railroads sufficient
| earnings to provide the equipment
and new construction which must be
| forthcoming very soon If the Ameri-
can people are to enjoy the traffic
facilities which the chief CONNER
cial nation ought to provide in time
of war and in time Of peace. Ex-
cept as a war measure, it would
have been impossible for the public
utility companies to secure the in
creased trolley fares which must be
granted now that the War Labor
Board has announced wage advances
! for the $4,000 employees Of twenty
! two railway companies operating In
sixteen States. BY announcing these
increases last Thursday, ex-President
, Taft and his associates of the War
Labor Board have forced many roads
to pay motormen and conductors from
S4.50 to IS day over an immense
area where a trolley fare has never
meant anything more than five cents
But the board declares that the by
rupt methods and exorbitant dividends
by trolley companies must be for
gotten in considering "the very peril
Gus financial condition" of the stree,
railways and that the public should
pay an adequate compensation for q
service which cannot be rendered ex-
cept for war prices
Increasing Wages.
Since the increased wage schedules
must be adopted, 1t stands to reason
that the roads affected must secure
increased rates for service IL the
trolley companies are TO continue in
business. 1t Is simply a matter OF
making both ends meet, as IT was 8
few months ago in the case OF the
great railroad systems. dozens Of
which would have been in receiver.
ship long ago had the Government moi
assumed control and undertaken t.
provide for their maintenance anC
financial well being. These change.
are only incidents in the great worl
of readiusting the country's bushes.
so az TO make 1t shock proof" jus
as the nations banking system
through the creation of discoun
market with the facilities provided b,
the Federal Reserve banks has for
titled the markets against none,
panics. The banks are lending tn,
Government $780, 900 every othe
week with less difficulty than the,
experienced a decade ago in flnancint
a $5o.000,000 dividend settlement.
Financing the Crops.
The move in the Senate last Thurs
day TO amend the War Finance Cor
poration act so as to permit advances
to the full amount of loans made o,
the paper of farmers and live stool
srowers was in line with efforts max
ing in other quarters TO secure ex
traordinary assistance for the farm
ing classes. 1t follows the action take,
by the directors of the War Financ
corporation in advising the Fedora
Reserve banks at Dallas. Kansas Cit,
and Minneapolis as to the readiness
OF the corporation to make advance
on paper which IL not available 70
rediscounting at the Federal Resery
banks, although representing the es
sential industries. Further assistance
or this character is provided to tn
drought stricken districts OF tho Yves
ard South. where $4,000 farmers ar
to receive loans of 5000 or less 70
the purpose of purchasing seed an,