The true northerner., 1919-04-04
REIMBURSEMENT

The process of readjustment goes
steadily forward, its rate of progress
being retarded by uncertainties which
remain to be cleared up. No definite
Iprogram has as yet emerged from the
Paris Peace Conference, although it
has been announced that treaty
would be ready by the end of March.
Political conditions in Germany and
Russia are still much disturbed, while
the economic situation throughout
Europe is of decidedly unfavorable
character.
Here at home we have just eXper-
fenced a clash between the Executive
and Congress, resulting in the adjourn
ment of the National Legislative body
without passing a number of the pend
ing appropriation bills, including
$3.50. 100000 for use by the Railroad
Administration. The immediate finan-
cial needs of the railroads are, how
ever, being supplied from other
sources.
Fortunately, amid all the disturbing
influences which are affecting business
the general situation of trade and in
dustry continues fairly good. Retail
trade, compared with year ago,
shows signs of improving, although
wholesalers and jobbers report an in
disposition on the part of retailers to
buy largely in anticipation of future
demands. This character of buying
awaits the price reduction which is
still expected. Action to bring about
this result has been taken by the In
dustrial Board of the Department Of
Commerce, the aim being "to wholly
eliminate the abnormal, unbalanced
stimulation that business has had
and the inflated prices that have re-
suited"
This is to be effected through Govern
ment cooperation in the determining
of fair prices on basic commodities
and in stabilizino these prices through
Government purchases.
The railroad situation as compared
with year ago shows some improve
ment although the fact that many
lines are not earning their operating
cApCuSSo iHu CdhcS OCCdSlOn
concern. For the month Of January,
1919, the ratio of expenses to earn
ings was 90.75 per cent. compared
with 95.14 per cent for January, 1913
a difference which is attributed chief
ly to the milder weather of the past
winter compared with that of the pre-
ceding winter. Since the wage in
creases went into effect in the latter
half of 1913 there has been a steady
advance in the ratio Of expenses to
earnings, the ratio of expenses to
earnings, the ratio rising from 68.87
per cent in July to 71.41 in August,
1900 in September, 1892 in October,
1924 in November, 1919 in December
and 90.75 per cent in January. A
compilation made by the Commercial
and Financial Chronicle" shows that
out of 191 roads there were seventy
three during the month of January
that failed to earn bare operating ex-
penses and taXes-the list of roads in
Guiding some Of the most important
systems in the country.
! Commercial failures for the month
of February were far below those of
the same month year ago, both in
pumber and in volume of liabilities,
and also very much less than the
figures Of that month for 1915, 1916
and 1917.
Unemployment of labor is reported
from some parts of the country, but
is not sufficient To constitute q SpriouS
crisis. In fact, there is well-informed
opinion to the effect that should there
be sharp revival of domestic trade
and industry, an actual shortage of
labor, and of considerable proportions
may be expected.