The sun., 1919-04-14

me rise In security prices brought
| the stock market last week to a level so
far above the basis from which the
present advance started eight weeks ago
| as to make highly speculative shares pc
culiarly vulnerable to professional SELL
Ing which finally forced a general reac-
tion The movement was exceptionally
| interesting. as developments covered a
| variety OF Influences, including effort by
bankers to make the Government assume
| the financing the roads until the close OF
the fiscal year, publication of the ex-
| traordinary April crop report, with its
forecast Of the most valuable crops ever
harvested, continuance OF negotiations
| for establishing commodity prices, further
addition Of $65. 200, 900 to railroad pay
rolls, giving out by the Steel Corpora
| ton figures OF its untitled tonnage which
show a condition better than had been
, anticipated. discussion as to the possibil-
| ity of reaching a peace compact by
Easter and the resolution OF the Blu
preme Economic Council at Paris call
Ing the attention OF the associated Gov
ernments to the gravity of the European
economic situation.
Governing Factors.
| 1t is difficult to say how far any OF
the influences affected security prices
| but the probability Ia that all Of them
had some bearing on what happened
| Removal of restrictions against short
selling made II possible for the bears to
indulge In tactics which during the
war could not be pursued except In a
half-hearted way. Toward the close Of
| the week there was sufficient profit taxi
| Ing to indicate that stocks were passing
into weak hands and that public particle
patton was not charging to any extent.
Under these circumstances It was natu-
| raj for the market to show signs Of
heavinese after earlier rise in prices
carried some specialties to new high
| levels for the year. 1t was the sort of
! reaction which helps to balance a market
| after spirited advance attended by
excitement that Invariably accompanies
spectacular advance In a few highly
| speculative stocks.
| A movement Of broad significance had
to do with bankers preliminary arrange
| ments to extend large credit balances to
| commercial interests OF various coun-
| tries. The negotiations have been in
progress for a good while and will re-
suit In granting immense credits to
trade interests in France Italy and
other countries as soon as II Is known
that the Paris compact will provide ado
| quately for peace. There Is an unlim.
| TIED field for such endeavors and since
the chances are that most of the accom-
mediation will be extended through ac-
| ceptance credits, the probability is that
| the financing will take the form of Sc
curities easily handled by banks. This
Is movs Of great Importance and In the
course of time probably will REQUIRE the
lending OF several hundred million dol
lars TO foreign customers OF American
producers and manufacturers. In that
| way II Is hoped to Offset evil effects, on
| foreign RAJ NJ he
cline In the price of New York exchange
| on London, Paris and other important
| trade centres.
Bankers have been quick to act IN a
situation which calls for the most in
| telligent support of American trade re-
| lat!ons with foreign countries. Our bank
Ing reserve is the greatest in the world
and the largest in relation to circula-
| ton and deposits Of any country asso-
ciated in the war. There Is every reason
why ANGLICAN bankers should seek
means OF mobiliz1ng the credit Of this
nation in order to finance our remark
! able export trade. There never was
/ such an opportunity and in the nature
OF things a similar situation cannot be
expected to develop again. Our Federal
| reserve system has given US facilities
for arranging such credits, and. as the
situation Is urgent. there Is every reason
why our bankers should safeguard the
foreign market for American products.
| The movement thus started consti-
| tutes the most extraordinary campaign
undertaken to market American products
In foreign countries. By sending a high
| foreign exchange expert to survey the
| field and to inquire into trade posi-
| bilities Of various countries, the New
| York bankers will be sure OF first hand
| Information and be prepared fully TO
make necessary advances as soon as the
| peace compact shall have been signed.
The bankers concerned have unlimited
| resources and. II the peace Of the world
shall appear to have been properly safe
| guarded by the protocol, II will be an
| easy matter for bankers to initiate such
| credit arrangements as shall broaden
| materially the foreign market for our
| foodstuffs. raw material and merchan-
disc. AS the credits be established il
| will be natural for bankers to arrange
| for fiotation OF the long term loans In
this country. Banking interests have
sent agents abroad to conduct indie
pendent inquiries on their own account.
Rising Railroad Costs.
Through raising wages of 400 900 ad-
| ditional engineers, f1remen, conductors
and brakemen belonging largely TO
| orotherhoods which received $4,000, 900
increase three years ago the adminis-
| II oNioh OIoueHL tIc TdlITOdu pay
basis up to $4,000 900. 900 a year. The
advances will amount to S65, 00o, 900 an
nually and mean that the total increases
in railroad pay during the last three
years with increases in supplies and
other operating expenses aggregate ST.
| 750.0o0.o00. against increase in freight
| and passenger rates of $1,000. 900. 900
| On that basis the roads stand to lose
S55o,000,o00 a year IN consequence of
extraordinary changes since the war
, began.
Since the roads passed under Govern
ment control railroad wage increases
have amounted to ss10.0oo.000 Rail-
| road wages have more than doubled
| within nine years. the average pay of
! all employees being 1878 year in 1910.
against f1.460 in 1919 The increase
since 1913 has been so per cent Fig
ures show how rapid has been the rise in
wages OF railroad labor during the last
| decade, in the course of which many
supplies required for transportation have
| more than doubled in value.
The roads will be forced to make enor-
nous OUTLAWS for rails. cars and equip
| ment in connection with demands which
| will be made on them when the bumper
| wheat crop be harvested and farm prod
| ucts converted into cash. The estimated
yield of American farms in 1918 was
s2i, S33, 100000. including crops and
animals. s2.ooo,O0o.o0o greater than