New-York tribune., 1918-12-03
Finance Economics
WALL STREET OFFICE:
Mills Building, IS Broad st.

Mills Building, IS Broad st.
Wall Street paid little attention
to anything but the Presidents mes
sage yesterday, and interest in that,
as far as it was given concrete eN-
preston in the stock market, where
railroad shares advanced sharply,
was concentrated chiefly on the sec
ton dealing with the railroad prob
lem. That was favorably received,
in spite of the fact that no definite
plan for solution of what is, per-
haps, the most intricate phase of
the readjustn OF business to the
new economic conditions was ad-
vanced. Possibly il would be more
accurate to say that the Street was
pleased because of the vagueness
with which the question was han
died, for the financial community
would not have been much sur
prised by frank declaration in
favor of government ownership.
Bankers and railroad men were in
I clined to believe that Mr. Wilson
had stated the case fairly enough,
especially as emphasis appeared to
be laid on the "intermediate course
of modified private control under
more unified and affirmative public
regulation" 1t is quite true that
return to the old conditions would
be undesirable; and government
ownership would be even more
Objectionable. The intermediate
course is what is desired by all who
have studied the question, except
the extremists; and the latter will
hardly control in the Congress that
will probably find the necessary
Legislative solution.'
"Modified private control is a
vague phrase. 1t may mean almost
anything, from what would be
e, tantamount to Federal ownership to
the old orders of things. But it
should mean, among other things,
elimination of the waste involved
In duplication of service, and the
creation of a flexible rate making
system that would insure the car
riers profits large enough to pay a
fair return on the capital invested
and to attract new capital for neces-
sary improvements, betterments and
extensions.
The National City Bank publishes
some figures that are of unusual
interest in connection with the stu
alton and outlook in the steel trade.
They show that Americas annual
capacity of all kinds Of steel ingots
and castings increased from 80
G98,000 gross tons at the end of
1913 to So, 433,00O tons at the end
of 1917, while so far this year the
capacity of open hearth steel plants
has been increased by S68,000 tons.
The ending of the war thus finds
the industry equipped to produce a
third more steel than was ever made
in this country in normal times.
Can this additional capacity, created
. without regard for costs, to meet
the demand of war, be profitably
employed in the period Of readjust.
ment that lies ahead? Apparently
the National City Bank at least be-
lleves the answer is in the affirma
tive, for in discussing the prospects
for business it says:
1t is not possible to doubt that a
great period of prosperity awaits the
country as soon as the establishments
to peace basis are made, and in
our opinion the required readjust-
ments are not such as to occasion
alarm. The situation is inherently
strong. Stocks of goods of all kinds
are low all over the world. and peo-
= pies nave been economizing in pur-
chases until their needs are pressing.
. This country could have had a great
i foreign trade during the last year,
despite high prices, but for the en-
bargoes and shortage of shipping.
Construction and repair work is be-
hind. Germany, the greatest steel
exporter before the war, has eX-
l ported none for four years. Belgium
and France, also exporters of steel,
have sold none in the same time. and
Engiand's sales have been greatly
reduced. These arrearages naturally
must be made up. In the past the
> consumption of steel was always rap
idly increasing, and it may be ex
pected to increase even more rapidly
in the future The demands of Eu-
rope upon the European supply will
\ be SO great that the other world
I markets will have to look largely to
/ the United States for early attention.
4 Furthermore, this country's capacity
| to absorb iron and steel is very great,
l and there is unquestionably heavy
/ domer.ic demand in waiting. The
- one question which cannot be def
= nitely answered is as to what prices
l must be made to bring this demand