The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-15
FINANCIAL NEWS
AND THE SITUATION
Stock Market Has Sharp Rally
After Early Selling Dur
ing Last Week.
UNREST is CHIEF FACTOR
Other Controlling Influences
in Unusual Situation in
Investment World.
UNREST is CHIEF FACTOR
ny WILLIAM Jusrus BoIrs.

by WILLIAM JUsTUs BOIEs.
The striking developments in the labor
situation as indicated by the extraordi-
nary police strike in Boston and early
indications that the movement might ex-
tend to other cities as we'll as frantic
efforts OF the radical element In or
ganized labor to tie up the steel in
dustry caused much nervousness in in
vestment circles last week. But the
stock market stood the test we'll and. ex-
cept for sporadic selling in a few OF
the highly speculative stocks, no heavy
liquidation to speak OF occurred. This
was moro significant In view OF mis-
givings concerning the possible influence
OF the coming labor conference when
the President Is expected to disclose a
new programme for bringing together
employers and employees. The country
is facing the most difficult labor condi-
tions that II has ever encountered and
because of the worldwide unrest 1t is Of
the utmost Importance that the situa-
ton should be handled with consum-
mate tact and with due regard for the
longer future.
The urgent need is to increase pre-
duction in every way possible and thus
reduce high cost of living. AS Gov
Harding has said. the whole situatioon
can be met only IL the doctrine of work
and save is taken to heart by every
class in the nation 30 that II may be-
come the guiding principle Of the Amer
lean people. II those reforms are to be
accomplished, organized labor must
work to enlarge the Industrial outpet
instead of jeopardizing II by strike In
reference. Ever since the enactment OF
the Adamson law II has been difficulc
to restrain the unions and there is no
nll fHer Nrvf, he
lead. The fact that workers In many
industries are well satisfied with prese1t
wages. which are the highest ever paid.
and will not be induced easily to shut
up shor Just because a professional agi-
tator urges n strike will make It diffi-
cult for the advocates of direct action
to get the hearing that they otherwise
might have had. But II the President
is to prevent other crimes against civil.
ization. as he terms the strike of the
police Of great city. he will find II
necessary to take-a firm stand forth
with.
Activity In Steel Trade.
IF the production of steel is not in
terfered with the probability is that
| many Of the large mills will report soon
capacity operation. Mr.. Schwab de-
clares that the railroads are in need of
o,VoVrVVV toiiS VI rains, the reledSe u
few days ago of a Government order
for 100000 tons shows that the Rail-
road Administration has entered the
market in earnest. The foreign roads
are badly off for equipment and i'm
mense orders will be booked by Amer
lean mills as soon as the necessary credit
facilities become available. The outlook
for the basic industry favors a flourish
| ing foreign business, as London advices
show that our steel makers are delivering
rails in Glasgow and London at a total
cost. including shipping charges and in
surance. which is considerably below
the quotations OF the British mills. on.
reason for this is that the output a unit
of labor in the United States Is much
greater than that IN Great Britain. where
even the coal miners under the award of
the Sankey committee are expected to
produce only 237 tons man a year, as
against an average annual output for
the American miner of 500 TONS
In such a situation, with a good por-
tion of the world clamoring for our
products. It ought to be the ambition of
all workers to increase the industrial
output in this country as much as posi-
BILE and safeguard the position of their
own industry, which must be done IL the
country Is to go ahead rapidly, as Il is
orders that American manufacturers
had counted on will not come to the
United States at all. That that view is
held by the Federal Reserve Board is
| indicated In the boards following state
| ment of last week. From the best in
| formation available II appears that the
probable demands of foreign nations
upon this country for reconstruction
purposes have been greatly overesti-
| mated In the public prints. It is perhaps
not unnatural in a situation where dis
tressed peoples feel they must draw for
| their needs on limited fund of capital
that they should estimate their require
| ments very literally or else they may
not be sufficiently supplied. For many
reasons it appears that the needs 81
Europe should be supplied through the
| private initiative of foreign manufac-
turers, merchants and bankers dealing
| with similar governments interests
There Is no reason to doubt that the
private Initiative, supplemented by such
facilities as governmental agencies are
authorized to make under existing law
can deal effectively with the present
situation
influence OF Edge Measure.
| The excerpt throws interesting light or
1
by the foreign trading companies pro-
vided for under the terms of the Edge
bill. which passed the Senate last week
The probability is that several of those
companies will take the field as soon a.
the measure becomes law. 1t is clear
that the usefulness of the proposed
corporations Will depend largely on their
ability to attract import as well as ex-
port business. as the prosperity of any
country's foreign commerce in the last
| analysis is dependent on a mutual in
fterchange Of goods and services. It Is
OF the highest Importance that European
countries which desire to do business
with us should be helped to increase Their
| own Industrial output as much as pos
sible to make possible for them to send
us the kind OF merchandise that they
sent here in quantity before the world
disturbance began. Labor disputes mus
be settled before II can be brought about
as the Industrial mechanism Of the Grip
pied countries is below normal anG
closest cooperation between all grades OF
workers will be necessary II the expor
movement Is to be materially enlarged
That Great Britain is alive to that need
IL apparent from the striking increas
in her export trade during August, tn,
total being s156, 100000 more than Tho
figures OF August, 1918. Large as tina
nd fnta