The sun., 1919-01-27

inflated price basis. and the sooner II Is
accomplished the better II will be for the
country. The movement was clearly
foreseen months ago and In q large
measure has been provided for. But the
process takes time and the public must
be patient until the movement has run
its course.
Normal Money Conditions.
Abandonment OF restrictions on Stock
Exchange loans with termination of the
most famous money pool Mat Wall
Street has ever known Is an event of
great Importance 1t indicates, as al
most nothing else could. that In the
Judgment OF bankers and Treasury OFF,
Gals the situation Is normal once more.
A month ago the Washington authori-
ties were averse to having tho Money
Committee dlsband. Now they favor the
step In the belief that protective meas
ures are no longer necessary and that
the situation does not call for the relief
expedients that were adopted at the
time that the first Liberty Loan was
fioated in June, 1917.
Stock Exchange authorities will con-
tinue to receive daily reports OF brokers'
loans that they may keep IN touch with
the movement, but lenders will be per-
mitted to follow their usual customs in
making loans on Stock Exchange coll
lateral. This marks a distinct change in
the money market situation and. under
the new conditions. the volume of Sc
curity trading Is likely to increase and
the security markets become much more
active. Although the committee thinks
that "there Is now nothing to Indicate
the probability Of a speculative move
ment which would absorb large amounts
90 he
likely to witness highly interesting de-
velopments in Wall Street.
There are immense stocks Of mer-
chandise, wool and other material be-
longing to the Government which must
be distributed. II they are to be dis
tributed, with the least disturbance to
industry. The proposal that merchandise
should be disposed of abroad. that the
homo market could be protected at
time when It was Of all things essential
to safeguard the situation In the United
States. has been made. Tho signing OF
the arm!stice caused such drastic changes
In the basic industries Of this country
and Europe as to force a world wide
readjustment Of prices, with the complete
rearrangement of manufacturing equip
ment and renewed pressure to revive
those productive activities which Ian
guished during the war.
This readjustment Is we'll under way
and In no part of the world has the
process caused so little interference as
In the United States The movement has
not run its course, although indications
are that in the leading industries 1t is
nearing completion. But in country
the foreign commerce of which has just
reached record proportions and the in
dustrial capacity OF which was never
greater, II stands to reason that the task
OF restoring the normal order OF things
cannot be completed In all industries In
the same length of time. II Is encour-
aging that Industrial readJustment has
reached a state in which new business
Is developing and consumers are reentef-
ing The market on a large scale. This
movement Is bound to increase as the
season advances, since "at price" the
domestic demand for steel, copper and
every variety Of raw material is bound
60 enlarge.
4 Pressing Need.
Congress must take measures to eolve
the railroad problem In short order. The
situation Is clearly up to the Washington
legislators. who have done nothing 30
far to discharge their heavy responsible
ity, which was emphasized by President
wilson's address to that body. Ono
thousand plans may be proposed for
settling the controversy. but the discus
sion will lag indefinitely to detriment of
business and injury Of investment
markets unless Congress gets busy on
it's own account.
Enough has developed in tho course Of
the remarkable discussion engaging the
whole country to indicate that the people
are opposed unalterably to Government
ownership and that there Is no important
sentiment in favor OF the plan to con-
tinue the present system OF Government
control for five years. The problem Is
complicated, but there Is no reason why
IL should not be solved satisfactorily
within reasonable time after Congress
sets to work to solve IL This country
has the best developed railroad system
IN the world and tho best trained rail-
road experts.
The chief patrons OF the railroads are
organized through associations of ship
pers, whose executives are in touch with
every phase Of railroad development.
There Is the Interstate Commerce Com
mission with It's extraordinary wealth Of
material touching history OF roads and
efforts made to increase their service to
be appealed to. With such material and
a large body of able railroad executives
to go to, 1t ought not to be difficult for
Congress to reach practical basis In
formulating a plan to continue best
features of unified control under private
ownership.
The point to be emphasized Is that tho
prevailing uncertainty as to the future
of this great American industry is doing
infinite injury at a time when the bust
ness situation Is burdened with other IN
certainties OF reconstruction.
There is a we'll defined belief in in
vestment quarters that this problem will
be satisfactorily solved soon and that
Congress will take action TO avert the
disaster which might follow a ANAL resort
to Government ownership. There are
several million individual railroad Sc
curity holders who are interested direct
ly in a sane solution of the problem.
There are many million other citizens
whose physical and financial we'll being
Ia dependent upon maintaining railroads
at American high efficiency standards.
There is not the slightest doubt that the
prosperity OF the country largely de-
ponds upon the adoption OF measures to
safeguard transportation and relieve
railroad managers from annoyance and
distress of having TO comply with va
ried demands OF State commissions after
roads are relieved from Federal control.
The Victory Loan.
The Treasury has begun preliminary
inquiries to test investment sentiment
with reference TO bringing out the great
Victory Loan. Every Secretary OF the
TAasury has found necessary to fol-
lov a similar procedure and has based
his operations upon most intelligent