The sun., 1918-09-02
BY WILLIAM JUSTUS BoIES.

would amount to s2,716,52S annually.
The United States Shipping Board and
the Emergency Fleet Corporation
asked the board to increase fares suf-
fciently to provide the company with
funds to maintain its financial sta
tility. so that 1t might develop max
imum efficiency as part I'm the coun-
try's war making machinery. More
than $50 cities I'm the United States
and Canada have increased street car
fares so as to keep the operating
companies going
This War and Labor Conditions.
These are incidents in "A nationwide
movement to increase wages which is
bound to become more of factor as
the withdrawal Of additional workers
under the new draft law takes effect.
The labor situation is becoming each
day more involved and 1t is evil
dent that the movement to Increase
wages which has been uninterrupted
since the world war began has not
yet run its course. Employers are
bidding record wages for unskiaed
labor while the demand for the se--
vice OF highly trained artisans is more
urgent than II has been at any time
since the war excitement began. The
utilization Of women workers has had
scarcely any influence in lowering
wages, since the supply OF available
r1en and women Is so far short of tho
demand as to make 1t very difficult for
the industries to be kept going on
even reduced working schedules. 1t
has been estimated that the country is
short 100000 unskilled workers, and
since immigration is at low ebb owing
to the war disturbance there is no
wav of relieving the shortage. The
movement to increase wages Is by no
means confined to this country, but Is
widespread throughout the area con-
tr ,li-d by the principal nations en-
gagged in the war. 1t is evident too
that wages will not In years. il ever,
go permanently back to the pre-war
basis. This is because living condi-
tons have changed everywhere and
the war readjustment has made it pos
sble for labor to obtain greater recos-
nition than ever before. In this sit
nation the labor organization has been
strengthened and the whole scheme of
collective bargaining has been in
y dorsed by various Government boards
| pfucT tit siiCoS "a Wi hNSSsS4t''
Liquid Collateral.
The move made last week 10 broaden
the discount market through offers by
r the international banking houses to
make call loans against acCepranceS
has excited interested discussion con-
corning the changed character OF our
3 money market. This new develop
5 nent brings into the money market
5 great volume OF competitive collateral,
but the probability is that It will not
work to the detriment OF listed stocks
r and bonds as security for call loans
4 striking benefit will be the growth
Of the acceptance system with the
| gradual change by commercial Dor
rowers from the old basis of single
| name paper to the readily marketable
{ acceptance form. This will create an
! immense volume of available securi
tics to take the place of the stu
pendous sums now tied up in open
accounts The country has been So
r long doing business with the use OF
] single name paper and deferred set
Elements represented by open ac-
I counts that the change to the new
credit basis cannot come Immediately.
But il any large portion of the $4,000
100000 or the $1,000 900 900 which
: are said TO he constantly tied up in
open accounts is made available
through the acceptance system for
quick settlements or as security for
call loans an immense enlargement of
the highest grade banking collateral
! must result.
Financing After War Business.
! Such a change would be OF great
{ Importance in financing business after
4 tostiities cease when the leading
| eligerent nations may be expected
= to put forth every effort to get back
. the valuable world trade that they
have iost to the United States. In
Q this contest the acceptance is OF vital
[ importance, for without it our mer
chants have always worked at "A dis
$ count as compared with their foreign
, competitors The growth of this syS
TEN for domestic trade will lead TO
far reaching changes and prevent the
oYertrading which has been possible
e under the present system of CONNER
i cal credits. The acceptance would
e not he OF service. however, To mer-
\ camille concerns doing a cash bust
. ness. But with the redisCount faCil!
1 ties provided by the new banking sys
0 tenn and the broad market for accep-
I tarces furnished by the Federal Re
= serve banks it is highly important
= that this institution OF credit which
e has been found so useful abroad
r should lie generally introduced in the
i United States. Its adoption will give
I tho banks vast amount OF liquid Cc!-
s lateral for them TO lend upon and TO
e invest in besides making II possible
e for mercantile interests to conduct
= their business upon basis which will
{ enable them to appeal successfully 10
I foreign customers under the new con-
s htions Of world trade which will oh
! tain as soon as the work Of restoring
= the world To a peace basis is taken Up.
= These problems are already engaging
c the attention of the greatest econo-
/ n lists, fnanciers> and trade experts OF
= Europe and America. and there is good
$ reason to believe that our business
G men will give good account of them
e selves in the competitive struggle for
d world trade.
that I conld slaon harauSn hats dn not