Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-26

pdHh. Inns pToNtSlOH SEhil diSO DIP
ply to trust companies and banking
institutions doing business in the
District of Columbia. A further
limitation based on total resources
would also be wise.
That the controllers office be given
authority to require national banks
to shift their bookkeepers and other
employees from time to time from one
desk or service to another. SO as to
make it more difficult, If not impos-
sible, for employees of banks to hide
their defalcations or to manipulate
the books.
Financial Sentiment Blue.
Financial sentiment is generally
blue, but the tenor of opinion is not
all one way. One hears much lamenta.
tion al present conditions and gloomy
forecasts. 1t is said that the rich are
liquidating stocks and bonds and not
reinVesting the cash because they cam
not find investments which seem to
them safe and profitable. Few people
want to buy stocks and bonds except
at marked concessions in price. There
is such degree of uncertainty that
many persons look toward the future
with alarm. The attitude of the gov
eminent toward corporations, and
railroad corporations in particular;
the certainty of high taxation. the
relations of labor to industry, the
steadily increasing costs of operation
of railroads and public utilities and
the dampening effect of the forth
coming government loan are some Of
the factors which men set forth to
sustain their bearish views
But 1T Is not to be assumed that
all the prophets are prophets of woe.
There are many who are looking on
the brighter side of things. John
Moody. in review and forecast, says:
"A boom or revival is before us, but
1t is too far before us to warrant our
wasting much thought on its details
at this time. The real thing that is
Immediately before us is the decided
~ uncertain and dangerous year 1919.
the political developments and the
work of the allied statesmen during
the year 1919 are the unknown guam
titles, but on these pending develop
ments will very largely hinge the re-,
vfval of world prosperity and the
return to normal peace conditions in
1920. If the peace conferees act
wisely. if they are just but practical
in their terms, II they work in har-
mony for the establishment of a per-
manent league of free nations and
thus put new life and confidence in
the future, thereby building the
credit Of the world upon firm founda-
tons, and if, coincident with this, the
peoples in the central powers are
pacif1ed and gradually return to
peace and industry under stable rep
resentative governmental such are
the developments of 1919, then we
NAV safely forecast real revival
with another year"
More Normal Conditions.
Further along in his review and fore
cast Moody says that by real revival,
as applied to 1920, he does not, however,
mean an extensive boom In industry
and enterprise the world over. He
says: Il mean a return to more normal
activity of more or less temporary or
der which should be helped along by
efforts at reconstruction in Europe.
Such a revival will doubtless DO more
psychological than real. 1t cannot be
lasting nor permanent, simply be-
cause Of the fact that the world will,
as a whole. still be impoverished; gov
eminent debts will still be mountains
high and heavy taxes will still be q
great burden on enterprise and indus
try. The world must yet pay for this
war; and one Of the ways in which 1t
Is bound to pay is to feel its fright
full cost far into the future"
In the opinion Of the Guaranty Trust
Company of New York. the most
vital OF our immediate economic prob
lens are those of commodity prices
and the general read5ustment Of in
dustry to a new peace basis" In a
late bulletin on Preparations tor
World Business" this authority says:
Many industries have been forth
fed against the reimbursement period
by the creation OF reserves for plant
extensions, adjustment of mechanical
equipment to a peace basis and the
depreciation of inventories. Industry
had been in many respects adjusted,
rather than expanded, to a war basis,
, so that it should be comparatively
proper efforts are made to facilitate
the operation of certain economic
forces making for world expansion
and the opening OF new markets in
undeveloped areas, the adjustment
period will be shortened and the re-
adjustment process will tend to merge
| into the coming era Of industrial ex-
pansion."
Hopeful Signs Seen.
Some of the hopeful signs which
the Guaranty Trust Company sees are
! that many improvements have been
| made in industrial processes and that
| tension of machinery as applied to
! quantity production the total output
! per unit OF labor has been increased
The fabricated standard ship con-
! struction promises to revolution1ze
| methods Of shipbuilding.
| The adoption OF quantity and stand
ardized production in the factories Of
France and Great Britain has wrought
as significant change in industrial
| methods as has ever been expe-
| rlenced. The development of the in-
ternal combustion engine is making
possible the further utilization Of
power and machinery in agricultural
| production. In the basic line Of pro-
| duction,. that Of iron and steel. the In
dustrial plants of the United States
have been materially increased.
One OF the authorities in the build
ing and construction industry says
| that the period Of hesitation may be
} looked upon as merely transitory, for
| the underlying conditions are such as
| to encourage the belief in impending
building activities Of UNPRECEDENTED
magnitude. It is said that "a tremen-
dous amount of building is needed
| for housing and Industrial purposes
throughout the country. The govern
ment has announced it's determination
! to push forward q gigantic program
| Of construction and to this end has
created q new division Of the Depart
ment of Labor for the purpose Of in
teresting the nation in public works
and private construction. Increased
facilities for developing our resources,
marketing our products and rounding
/ out our necessary export trade will
impose heavy tasks Of building work
upon US"