Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-08-30
CONSTRUCTIVE TREND
ON STOCK MARKET
Improvement in General Labor
Attitude and Better Foreign
Exchange Noted
HIGH PRICES TO. PERSIST

iiiVII nISEO ~ TEnotO
New York. Aug. 3O.-The Sun
financial review of the week says:
The week closing today was highl!
constructive and its developments CAV,
promise in the opinion of many OBJ
servers of a broader and higher marke
for securities in the near future. Their,
was distinct, though perhaps not per
manent, Improvement in the trend o
foreign exchanges until the last da!
or two when some setback was expert.
enced as n result Of the reduction il
the Bank Of England interest rate OF
foreign deposits from Az per cent tC
z per cent.
This tended to induce the Withdrawal!
Of deposits and consequent increased
demand for dollar exchange in London
There was pronounced growth of OPP
tmism with respect to the labor stu
alton. Money rates did not advance a'
it was expected they would do because
of the showing made in last Saturdays
Clearing House statement, revealing
small defcite in reserve above require.
mcnts.
The defcite in question was technica
rather than actual and one easily tc
be corrected. The United States Mt.
torney general declared that progress!
was being made in reducing commodity
prices. Washington advices stated that
the Plumb plan for government opera
ton of the railroads had been virtually
shclved and the constructive railroad
legislation vas in train to be introduced
| shortly.
High Prices for Two Years
A stock exchange house undertook {
symposium of business opinion on thu
outlook, 1910 representative business
replying to the questionnaire sub
mitted. The resultant report said
"Opinion apepars to be about cvenl!
divided as to the permanencc of thu
present prosperity and the high prices
and wages that are incident to it
and Of 1857 who have answered th
question there are 1924 who believ
that it will be an average of at leas
two and half years before we vii
get any serious reaction. Presumabl!
condition that remains relatively stati
for two and a half years in this chang
ing country is regarded as about a
near permanent as we may ever get II
our business eXperience-at all event
it gives us time to make our calculation
deliberately.
This is not unimportant as implyinl
confidence in the basic economic strength
of the nation, the inner consciousness
of well being. as it were. There ar
happenings from day to day to keel
surface emotions ruffled as. for example
the controversy over the peace treaty
agitation attendant upon Tabor unres
and anxiety concerning the outlook TO
our foreign trade.
Favorable factors underlying thes
tossing waves Of passing sentiment cal
come to the top only with the exercis
of initiative and energy in the solution
! of the multitude of difficult problems
The most forward step to that end wa
seen at the beginning of the week II
the firm and equitable stand taken b!
President Wilson in treating with th
railway shopmen's demands. In hi
letter to the public and to the uneas.
workmen, the executive balanced tn
claims of public and employc witt
nicely.
In a word he told them that the onl,
effective way to cut the cost of livin
was by reducing prices and not by rals
ing wages. Coming from the head
the government and expressed in force
full logic. its direct drive at fundamen
tails could not fail to carry conviction
to the simple and profound alike. Ther
could at once be discerned chang
in the attitude of the labor leaders. Mr.
Gompers hastened from Europe an
added the influence of his cxperienc
and mental poise to the sober secon
thought of his associates in the held
labor.
Government Determined
The direct result was communlca
tion. which Mr.. Gompers caused to b
sent to local union heads advising tha
strike action be withheld until the gov
ernment had had reasonable opportu
nity to demonstrate its ability to lowe
the Lowell of commodity prices, for I
period as long possibly as ninety days
In line with this highly encouragin
accomplishment, assuming labor vii
heed the behest of its leaders, was tn
blunt order which the President au
thorized the Director General Hines t
send to the striking railroad men il
california, Nevada and Arizona to re
turn to work forthwith or forfeit thei
nositions to army control.
This step indicated clearly enoug
that Washington was determined t
adhere to the letter of the President
earlier communication and take the bu
nv the horns. There was hope that
tho railway shopmen could be per
suaded to accept the Presidents ofte
and to signify their intention OF wait
ing on the results Of the autiprofiteerin
campaign, the effect elsewhere !
labor's ranks would be sanitary. not
ably among the steel men OF til
Youngstown district, or rather that por
tion of them who belong to the unions
'The committee purporting to renre
sent the Youngstown men came to Ne'
York and asked Judge Gary for per