New-York tribune., 1918-11-07
WALL STREET OFFICE:
MilIs Building, IS Broad st.

less a continuance of the war should
force a special session, the new
Congress could do little before the
beginning of 1919. That is a good
way off. In the meantime, no legis-
lation beyond the tax bill seriously
threatens the course Of commerce.
At best, Republican House could
only block any radical tendency
which might arise from conditions
following the close Of the war. A
political block at Washington spells
relative peace to Wall Street.
Wall Street was far more inter-
ested in the news that a German
commission was on it's way to ask
the terms of Foch. Along with this
came reports of extensive cancella-
tions of war orders on top of those
reported last week. The reaction Of
the market thereto was one of ap-
parent optimism.
With the elections out of the way,
a Republican victory in Congress
and imminent prospects for peace,
the present Republican representa-
tion in Congress may hardly be in
the same mood to approve the
Kitchn tax bill. Before that meas
ure is completed and passed some
of the undue burdens it imposes
upon business may be lightened.
"The Iron Age" states that
"There is unofficial advice of plans
for the continuance of the price fix
ing committee of the War Industries
Board for six months after peace is
declared. This is presumably in an
swer to inquiries that have been 60
ing to Washington from the steel
trade concerning the future Of gov
ernment control
This in interesting, but perhaps
not very important. 1t is a guar
antee against a runaway market
in iron, steel, copper, coal and other
commodities whose price has been
fixed by the government. But with
the cessation Of large part of the
governments enormous buying and
general stoppage of munitions con-
tracts, such a runaway market was
scarcely to be considered imminent.
With the orders of various govern
ments absorbing very large part
Of the total production in steel and
copper, the prices fixed amounted to
a virtual guarantee, but nothing
more. And they were maximum
prices. Their maintenance does not
insure a maintenance Of prices.
The fixing Of the wheat price is
very different matter. That is a
minimum price. And a guarantee
1t means that something like a bill
icn bushels, plus or minus, has been
contracted for 1919, by the govern
ment at base price of 1925 per
bushel 1t is virtual guarantee
of very large wheat crop at rela-
lively high price. But it is much
more than just that. 1t is base
line which will determine the gen.
eral distribution of crops for next
year. One would not expect from
this a heavy increase in the area
planted to corn, oats and other farm
products. General conditions re-
naming somewhere near the normal,
this would be a virtual government
guarantee of fairly high prices for
farm products in this country next
year. That would also imply corre-
spending prices for meats. This does
not suggest an immediate drastic re-
duction in the cost of living. There
fore, not in wages.
The Corn Exchange National
Bank, of Philadelphia, makes inter
esting quotations as to the course
of business after the Civil War. One
relates to the vital problem of labor
readjustment with the return of
millions of soldiers and sailors after
the war. "This problem after the
Civil War, however, loomed just as
large, and the proportion of men
returning from the present war, if
it should end, say, within year,
will be no greater" William Archi-
bald Dunning, in discussing the re-
construction period after the Civil
War, in his book "The American
Nation" has this to say:
at is difficult to detect, however,
any economic influence of the great
and sudden change in the North dur
ing the middle of 1866. The abrupt
transfer of nearly million able
bodied men from destructive to pro-
ductive occupations, with stimuli
taneous curtailment and extinction of
many large industries, might have been
expected to make itself conspicuously
felt in business and finance, but
hardly ripple was manifest on the
placid surface of economic life. The
readjustment of forces proceeded so
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