Pine Bluff daily graphic., 1918-01-13
AMERICAN FINANCE
 NOT DOWNnEARTED
Condition of Money and Security Mar.
 kpts is Discussed.
Special to The Graphic.)

! there is plenty of company The pes
 simist can readily dwell upon anarchy
 in Russia; upon Germany'S momen-
 tary military successes: upon the ter
 rible cost of the war; upon the ecOno-
 mic and political upheaval, and upon
 numerous other depressing factors.
 and yet every healthy minded, though
 ful American refuses to be downheart-
 ed. On the contrary, he is more confi- i dent tha,l ever in an Allied victory. | He believes that the enemy is nearing | he end of his power, that he is unable
 10 hold his winnings, and is marching
 to inevitable collapse when our armies
 reach France. Germany is gradually
 hrcalin2 down financially, economic ally and policically. She is threatened
 with leHolu,ion. and only the cohesion
 or her military machine, which is
 G"htina for it's very life, holds the fabric together. How long the autO- | crats may hold out cannot be fOretOld; but it is certain that dissensions with in coupled with opposition of the whole civilized world without. wiil
 have but one end--that is ignorminious toFoat. Blinded by empty victories
 and false leadership, Germany seems utterly unable to reaG the handWrit-
 ing on the wall. Civilization outside of IGermany, however, recognizes that
 t cannot live. if GeImany's ideals and purposes prevail The war may con tinue for weeks, or months. Never.
 theless, the real foundation for hope on the Allies side has never been Sd 1 clear and strong as today. At present the brunt of a struggle falls on Brit am and France Both arc enduring the strain infinitely better than ever anticipated; and both show an uncon- querahle spirit and a steady rising of morale, while that of the enemy IS declining. Both of these countries are bearing tbc strain With surprising ability; and there is no doubt that they will be able to hold on until Am erican soldiers reach France in suf ficicnt force to overWhelm the foe. Perhaps this will happen in the com ing spring; ard if fate should post pone the grand decision. prostration of the enemy will be far greater than if wise counsels induced an earlier yielding to the inevitable. Back of these considerations. which are sound reasons for hope. is the belief grow ing daily that the world is surely fac. ing new and better era than the enc now so rapidly passing away. The more confident tone in the SC curity markets which began with the announcement of government control of the railroads made further pro- gross. The advance in railroad shares was well sustained, extending With | more or less pOsitivCness into the in | Guetrials, some of which scored very | considerable advances. The railroad | crisis probably now at it's most acute stage the severe cold spell having | seriously added to the difficulties Of 1 operation. Tho latter are now being | met, as they should be. by a central 1 ized power; and before long consider | able relief will undoubtedly be forth , co.nin@ SlneleneSS ill 2pGratlOl | however. will pot be sufficient. The | great problem of how the roads are l to meet expenses and pay reasonable | profit without which they can secure no additional capital, still demands
 solution. Whether the roads will be allowed ot increase their charges, as 1 they ought to be, whether the govern
 mcnt will he obliged to give some form 1 of Financial aid, remains to be seen. l Congress is about to take up the rail
 road question seriously; and it is
 pleasing to note that less prcjudiced l feeling prevails in the national .!CgiS-
 Ijuure and that the question of deal | iuG fairly with the railroads Is a necCS-
 say patriotic service, if they art to do 1 their Imperative duty toward winnin2 the war So while the situation of tic railroads is 2t its worst, tte pros
 poets 0 frclicf were ncvcr better than | today.
 President Wilson's message to con
 sress on the railroad problem was
 eminentlv sound and just. He stands
 for me standardization of control which
 IS csscntia( to winning the war: for lahor users and owners--and for pre- scrvltion of the railroad system in
 both its physical and financial aspects.
 Elc pointed out the necessity for prop
 " compensation of the roads; also
 vcccommendcd that the government
 guarantee a net operating revenue
 equal to the average of the three years
 ending June 30, l9l7 Tue message
 equitable treatment of all interests
 is au enlightened document; and it is
 difficult to see how congress can do
 otherwise than adopt his suggestions. u lflN ttlVlitu lcSlSldltolt lS lolNHVtill"
 iug, it will instantly arrest the deep current Of distrust which was under mining thc financial fabric, and caused
 such startling shrinkase in railroad
 securities. President Wilson has in
 stitutod a radical change in the popu-
 lar attitude towards the railroads
 which will have the effect of restoring
 confidence aud strengthening railroad
 credit generally.
 The advance in industrials was part
 ly due to Improvement in the railroad
 outlook. which will hasten much need- ed OutlaNs for cars, locomotives and
 other deferred improvements. The
 steel inGustry also benefits from the
 pressure of war contracts which im~
 pose ever growing demands upon that
 industry. The immense new ship ton
 nagc in course of construction will be
 an additionally important factor for . months to come, should the war come
 to a close earlier than expected, the