Omaha daily bee., 1919-11-22
Wall Street and the World
From the New York Times.

| in Wall street depends upon the accuracy with
which they reflect or predict conditions else
where. If Wall street is thinking only of the
United States there has been some ground for
the prices which have prevailed there, for as
suredly never was there such an accumulation
Nof liquid wealth in the world as here, and never
such contrast with unhappy conditions else
where. In the leading American money market
| the war boom on this side the ocean might be
carried further into peace, but that is difficult
in proportion that Wall street is under the
necessity of taking note of conditions through
out the world
Certainly nobody can think that world con-
ditons favor the diversion of funds anywhere
into uses which add nothing to the production
and distribution of the necessaries of life.
Probably at no time has there been greater
exhaustion Of consumable goods, and certainly
stocks have never been lower when there was
concurrently such universal and exigent need
Only few years ago it would have been the
it would have fallen to our market to reflect
London's. Even now London makes this sur
vey and tells us what it sees and thinks, but
the world no longer looks to London alone.
There is no help but here, in Wall street, and
alas Washington. The present Wall street
movement is important, not because it reflects
the elimination of our war BOOM" but be-
cause it shows that our leadership is resolved
to take up our burden of production rather
than to nurse speculative movement which
to few and disaster for many.
There is nothing in the fall Of the ndustrials
which threatens their productive capacity
Their profits from trade have not yet fallen,
and need not fall Sales and collections are
good, and should be better when so many in
the world are both idle and needy. In both
equipment and finance the industrials are
stronger than when their prices were rising.
The difficulties in the situation are noe. eco
nomic, but in the technics of credit and the
politics of the American parish Our citizenry
is the worlds soundest and sooner or later our
Then there will be revival of industry for the
worlds succor fit to compare with our rush to
the relief of the world from domination. That
is what the larger and higher Wall street is
preparing for. Wall street looks ahead, and
never moves with water already past the wheel.
the few who bought at the top or have pyra-
mided when they should have sold. But how
ever that may be- the thing to think of is future
production, not present prices
The cause of the trouble is so clear that
there can be no doubt of the remedy. 1t was
remarked the other day that ordinary meas
ures of control of the exchanges between ma
lions had lost their power. That is true also OF
the money market Every nations money
market is surfeited with national credit. or
dinarily the best credit. Every nation has too
much currency, of local worth alone. No nation
to seek to attract gold from anywhere, even
here. Strong as we are, we cannot equalize the
levels in all the worlds reservoirs, and we can.
not choose which we shall help, which we shall
money rate to retain the estimated half billion
dollars of foreign funds, the basis of credit to
several times that considerable sum. Only in
regard to the exchanges with its immediate
neighbors can the London rate be effective, and
there was need that it should be controlled.
,Ior~ y,yhtc INNS f1Iy
u.s. and London cannot outbd New York.
Neither should attempt such rivalry, even,
with the best of motives and the soundest OF
normal arguments The conditions are abnor-
NAL, like nothing that ever was; or. It may be
hoped, ever again will be- The imitation of
credit which hurts is based on government
credit The time has passed for giving prefer
ence to that The industrial level has been tai
sifed by the reckless expenditure OF govern
ment credit. Trade has been financed by profits
which have served their turn and should be mod
Grated. The time has come to promote. COM
merce on an economic basis and to stop hnanc-
ing by bonds and currency and overdratts IN
stead of acceptances. In short, credit should
now be given first to those seeking to produce
and distribute consumable goods. 1t is hard
to DENY accommodation to those who come
with the best credit, and borrowers on govern
ment funds should still be favored If they pur-
pose to make economic use OF the money. But
there should be reduction OF government
If they were more free with commercial than
speculative business. The Central Federal bank
has said that money borrowed on government
bonds has gone into speculative commitments.
They produce nothing but booms, which are in
furious when production needs. the money:
There should be gentemen's agreement
among money centers not to outbid one another
and to favor trade rather than speculation. If
the war on want is pressed with anything like
the energy and resolution that won the war on
Germany, there is no doubt of result better
than any price movement