New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1918-12-18

as long as they are unable to send US
merchandise in payment for our ex-
ports. This again means that our
banking system must adapt itself to
such demands, step that would,
temporarily at least, make New York
the worlds first banking center, and
will in any event leave it a close sec
ond when normal conditions return.
The most acute problem at the mo
ment is that of labor. Wages in COM
mon with other values have risen to
unheard of levels. owing to the war;
and if comm ODDITIES decline it is self
evident that industry cannot recover
it's accustomed prosperity unless
some workable form CT adjustment is
developed. Labor very naturally re-
fuses to consider any reduction of
wages while the cost of living re-
mains so high. The result is a threat
ened deadlock between capital and
labor, complicated by general social
unrest and an epidemic of impracti-
cable dreams. The solution of such
Il tangled problem requires the ut
most foroeararce on both sides. Tn
less the spirit of fair play and mutual
consideration prevails there is danger
of injuri us consequences to all con-
developed among industrial leaders,
who show a disposition to recognize
the position of later and to take the
lead in a policy of Cancellation and
| discussion. One CT the first leaders in
! the country has publicly taken the po-
| sition that capital must be ready to
make sacrifices: another has favored
more intimate relations between cap
| itaI and labor, with the idea of estab
| fishing industrial democracy, and so
| on. This is encouraging. The offer of
| good wages and better conditions or
| employment comes when most need
/ ed from employers whose policies
will undoubtedly be widely followed
! elsewhere. How will labor meet these
| advances? No adjustment of wages
! to q peace tasis is expected until
| commodities decline; but the high
| level Of the latter cannot continue,
| and when the drop arrives the test
| will come.
Events of the week were not of
| stimulating character in TIC financial
! district. Action of the War Board in
surrendering control of the steel in
| dustrv after December 81 was a, dis
| appointment. especially considering
| that steel leaders had requested a de-
| market. Moderate concessions in
steel prices had already been decided
upon, with the idea of returning to
pre-war conditions by a gradual pro-
! cess. The Board, however, was pos
| tive in its attitude that it was best
! for all concerned for industry to go
back to normal as soon IS possible.
Another Unscttling factor was Secre-
tary McAdoo's letter suggesting that
control of the railroads be left to the
governm for another five years.
This is directly the opposite of the
policy prevailing in other industrial
activities of the government. The
secretary, however, makes some
strong arguments in support of his
views, and these will have to stand
the test of discussion. 1t seems hard
" wise TO accept his ideas until the
other side has been sufficiently heard
from. The return Of the roads -
their owners after the war was fixed
promise that should not be reversed
without ample reason, nor without
the approval of those most concerned.
An immediate return of the roads be-
fore necessary legislation has been
adopted would be disastrous to some
of the smaller roads, and an extension
OIL INS years VI SONGl l4AA'ViA SoH|ANA
has not yet been justified. Let US
have thorough discussion before any
change of policy is adopted. The
money market is fairly supplied with
funds call loans being abundant, but
time loans scarce. Preparations are
already beginning for the next Liber-
tv Loan which will p1 obably be placed
on somewhat different lines than pre-
cediug issues Now that the stimulus
Of conflict is over, regular business
methods of f1otatiCn will have to be
depended upon, and the terms Of the
new loan are already being discussed.
Some important questions Will be
forced upon our new secretary at an
early date, but fortunately he is we'll
equipped by both knowledge and eX-
perience for dealing with them. An
unsettled stock market must be an
ticipated for the immediate future.
What with the problems referred to
above, and what with the adjustment
necessary to declining commodity
prices, as we'll as the fading away of
war profits, considerable denation
must be expected. AS an offset
slow fall in prices of commodities
would stimulate demand, and induce
{, revival of customary enterprise
There is no reason whatever for loss
of real confidence. Good lnvestm ents
should not be disturbed; and after
necessary adjustment we may look
forward to more healthy conditions.
HENRY CLEWS.