The Washington times., 1919-10-01
BOeTSIdneT,S s
Comment
on Business
By BoERsIANER.

The sincere answer to the probably
insincGre call rate OF II per cent in
New York is the condition OF the
Governments finances and bank de-
posits throughout the country, par
ticularly in the west.
Following the last emission Of
S75S. 900, GOO. 500 treasury certificates
the total Of such obligations out
standing was S3,4T1 ,625, 500. A high
treasury official informs that by June
so, 1920, more than half Of this Sc
curity will have been cancelled. so
well are the financial affairs Of Gov
eminent in hand. Expenses are de-
creasing with succeeding weeks. But
the positively favorable point
against the negative-is the ease
with which the Government may get
money-after the colossal war ex-
.penditure. The latest loan consisted
OF $65T 4O9, 900 one year ~ per cent
certificates and s1O1, ,1S1 800 Of a six
months ~ per cent security. The
latter offering, although bearing q
low rate Of interest. was over
subscribed by $3.50. 100000
Stated more significantly. q fort
night after the banks were willing
to buy S551, ,131 500 OF AZ per cent
paper. some Of these banks are os-
tensibly reluctant to ease a - per
cent call rate in Wall Street; unvEiil-
ing whilst deposits are accommodating
rapidly and enormously everywhere.
The rate must be strategic: Of the
same diplomatic insincerity as that
Of last month when the Bourse pace
became too fast for staid bankers
and for the Federal Reserve Board.
The current eEpedient Is not quite
as Understandable given the labor sit
uation.
Crucible steel a competitor ae-
knoWledges, has an invested value Of
about tOday's quotations. Enough
money has been put back into plants
and in extending plants {non-taxabIs
money or valuesl to show an fp.
vested worth OF about S24O a share.
- Broadly taken, the Crucible COM
pany and all companies-all busi-
nesses-wiIl indorse what the stock
exchange is registering II America
continues to work normally and hon
estly; if, in other words, it continues
to produce. without at least normal
production, values were valueIess.
This platitude demands emphatic
reiterGtion at a time leaders Of labor
preach short hours and more pay as
panacea for high prices The reverse
must be the result The cure for high
prices is production and even more
production. II WoTkmen would have
cheaper food and raiment they are TO.
be had in larger production. not in a
pregnant pay envelope procured by
fewer hours Of labor.
They think IL they compass the
former they will have the employers
on the hip? Not at all; the employer
sooner or later passes the increased
burden on to the consumer, who is
the 'laborer as we'll At the end OF
the ends, everybody, employe, en-
generality OF men and
women-are on the hip.
y There. are misleaders- Of labor who
think they have made an original dis
COvery in virtually proclaiminE work
an evil. It is an evil invented in the
Garden OF Eden. That man should be
compelled to work for his sustenance
is admittedly a bore. But so long as
no alternative has been found. IL
were incenvenient for society to at
tempt TO get on without production.
Before society abolishes production IL
should have a thoroughly probated
substitute in reserve.