New-York tribune., 1918-12-05
WALL STREET OFFICE:
Mills Building, IS Broad St.

ions as to the best course to pursue
with the railroads arc widely di
vergent. There are those who ia
vor the restoration OF pre-war con-
ditions without delay, while others
see no hope in anything save gov
ernment ownership. But in the
main executives wisely take the mid
die course, preferring continuation
of government control until rene
dial legislation can be secured |
There is danger in hastv action, for
the reason that no one can foresee
the course of events during the re-
construction period that lies ahead.
1t seems obvious that if the carriers
are to be returned to their owners
it should be only after some way
has been found Of making the rate
structure sufficiently elastic to main
tain fair margin between the wage
scale and the income account That
is the biggest part Of the problem
just the difference between wages
and rates necessary to take care of
wages, with a reasonable profit to
the owners-a profit large enough
to provide fair return on the
capital already invested and to
attract such additional capital as
may be needed to keep the trans
portation system up to the de-
mands Of the industrial machine,
The cost of supplies and other
things can safely be left to compe-
tition. But there is no competition
in labor-only competition for it.
And it is politically more powerful
than the railroads ever were when
they were in politics
A few brokerage houses which,
lacking sufficient collateral, were
forced to reduce their loans below
the minimum to which they were en-
titled, will reap some benefit from
the decision of the money commit
tee to suspend the additional mar
Sin requirements on Stock Exchange
loans that were enforced last month.
but there will be no more money
tor speculation as result of YES
terday's decision. There will mere
ly be slightly greater utilization of
the present supply The announce
ment made by Governor Strong was
in fact, disappointing, inasmuch as
he stated that ''it is not probable
that additional funds will be avail.
able for Stock Exchange loans as
long as the government continues tc
be borrower on the present large
scale.' That is to say, the stock
market must for an indefinite
period, perhaps six months or a
year, continue to work on thir
money rations, a condition which
makes the development of a broaC
and active market practically i'm
possible. Yet it is obvious that {
free and unrestricted market woule
tend strongly to ease the strain Of
the economic readjustment through
which the country is passing an(
might indeed help rather than harm
the next government loan.
| Why there is likely to be labo
unrest:
| In manufacturing centres through
- out the country it is regrettable to
have to state that work people have
saved comparatively little out of the
abnormally high wages they have re-
ceived during the last three years.
They have indulged in luxuries and
eXtravagances to degree never be-
fore witnessed in this or anv other
country. Shirt manufacturers report
large sales of silk shirts at 500 a
dozen wholesale. These shirts were
of brilliant colors and loud patterns
and were sold finally to wage earn
ers, the most of whom never before
}. owned such an article of apparel
Prominent manufacturers Of pianos
and player-pianos Of the medium and
cheaper grades have been able to
- sell all they could make, and most
m of them have gone into the homes
of people who were called poor be.
fore the war Those who have &C.
J quired wealth rapidly in the last
1 four years display the same traits
| The American EXCHANGE National