The Washington times., 1919-10-29
Boersianer's
Comment
on BUSINESS
~ BOERsIANER.

The advisory council of the Federal
Reserve Board has taken under ad-
visement q proposal to curtail credits.
A meeting will be held next month to
decide what shall be oone-if any
| thing,
Meantime each member has been
asked to formulate his ideas on the
subject.
IL the advisory councillors are well
advised they will unanimously veto
the move to reduce bank credits by
voting to raise the re-discount rate
abruptly and sharply by other means.
This is not an opportune time to
put ban on business. Besides, the
Governmen the Federal
| Reserve Board-had heretofore I'm
plicitly encouraged commerce expan-
sion; had stated openly that every
thing should be done to help trade,
| including foreign trade and the trade
OF foreign countries. Business men
followed the advice. Neither domes-
tic nor foseign tradesmen can be fur
thered by devising schemes to abridge
credits. 1t would seem that the nerve
Of the Federal Reserve Board should
have 1een shaken somewhat by their
experience in trying to regulate the
stock market
anu yet the OOuTSe is q tThCtaoic
affair compared to the modest plan
OF regulating the countrys commerce.
or what is the advisory committee
afraid? Which one OF them made this
enlightened and progressive proposal.
Samuel M. FELTON,. president of the
Chicago Great Western railroad, and
an reflective member OF the main steer.
ing committee of the railways, gives
clarifying views of the Transports
tion status:
I'm what condition shall the prop
critics be turned back to their own
ers? This Is vital question, upon
which the owners and the director
general do not agree. Representa-
tives of security holders are certain
that the Presidents proclamation In
taking over the roads stipulated
quite clearly that all the lines shall
be returned in as good financial and
physical state as when they were
taken by the Government. which
would s1em to be a fair and reason
able proposition as well as q rational
Interpretation of what the President
wrote at the time.
But Mr.. Hines differs from US;
and we have accepted the situation
and with his cooperation will do the
best we can to correct the present
| situation pending the nnal passage
! of the railroad bill. Mr.. Hines is as
helpful to our committees as he can
be. consistent with his position. On
the question OF rates. Mr.. Hines has
been misunderstood. His decision
that the Railroad Administration
would make no increase in rates has
been misinterpreted as declaration
on his part against any rate increase
whatever.
"This really meant tie roads them.
selves should file their tariffs as soon
as practicable after January i. and
let the Interstate Commerce Commits
sion pass on the petitioned schedule.
Meanwhile the Federal railroad ma
chinery would assist us in the prep
aration of the new tariffs -
Even IL the Railroad Administra-
tion-that 10 Mr.. Hines-were to
pI oppose new rates they would have to
be approved by the Interstate Com
merce Commission before they could
be effective. Another important phase
Is to have the Congress make the
qustion of rates mandatory and not
leave everything, as heretofore to the
disc! otion OF the Interstate Commerce
Comm ssion.
I'VE hope for a satisfactory out
come of all these negotiations Our
proposals are receiving consideration
ir Washington which leads to the
inference that when the Government
returns the roads il will be on a basis
safely financial and on operating
terms--rates-fair to everybody, to
the public and to the lines.
Congress has in the preparation
and passage of the new law cover
ing railroads regulation the most i'm
portant task that has confronted Il
since the passage Of the original In
terstate Commerce act. Every feature
OF railroad operation has been
changed since the outbreak of the war
ano Government control became effec-
tive.
THE industry is too important n
the nation for any one TO expect Ier-
islation that in the end would he
harmf full The natiaa