Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-07


A prominent banker was speaking
Yesterday of the unique position which
the United States holds in connection
with other nations all over the world.
He said he found an opinion held among
some business men and even among GER
tain ilnanciers. that we We're approach
ing a period of part-time employment
for some and no employment for more.
what the United States has to fear
Is more the lack Of means Of Transport
tation and high exchange rates than
from n other cause. Financlers, in
some instances, he remarked, are fear
ful that the expansion OF the purchasing
power of the people has reached II not
exceeded the limits of imitation. This
condition. lie said. ia the cause OF the
present high prices. but is not a serious
matter If we only bend our energies to
ind a foreign market for our surplus
products, and that we cannot do prop
erly till we extend our foreign loans
and credits much more than we have
done in the past. There is an idea
abroad, he said, that high prices are
only to be found in the countries actual
ly engaged In the war. but as a matter
of fact prices are higher in some of the
neutral countries. Every country has at
present an abnormal expansion of credit
and. therefore. high prices.
The two most promising antidotes to
high prices can be seen in the work of
several large banking institutions in es-
tablisning branches II agencies in for
eign countries, n the activity in the
building of ships to transport our sur
plus production to these countries. In
the past Great Britain owed her COM
mercial and financial superiority to her
ownership of the means of transporta-
ton ships and the LIQUID capital to
finance an volume Of foreign
trade.
Today We are rapidly getting the ma
chinery ready to become the foremost
commercial nation in the world. All that
is needed Is for our manufacturers, bus
mess men n bankers to have unuues-
toned faith in their ability to take ad-
vantage of the. opportunities which are
at our doors.
Speaking OF reconstruction in France
an official of one of the large industrial
concerns which turned out immense
quantities of war material and who was
most intimately informed OF conditions
in the war-devastated district of France
by personal contact and observation,
said that in the cases of small villages
and small towns he did not believe they
would be reconstructed as the term is
generally understood in the United
States. Many of the houses were orig
inally very simple, some even made of
dried mud covered with plaster, and
without any of the modern c~onveniences
that Americans demand. In the first
place, he remarked, there was r. reason
for. the coming together gradually of
the people who formed these small COM
munities. That reason exists no longer.
The men, he said. in many instances
have been killed or ~incapacitated and the
incentive among those left is not strong
enough to permit of reconstruction on
such a scale as people in this country
have imagined. This official is a native
of France.
Bond market conditions were some.
what improved during the last week, and
prices at the close of business repre-
sented advances In many Issues ranging
from two TO three points. There were,
however. a number of losses recorded,
principally in railroad issues. The rail-
road situation Is SO unsettled at present
that holders OF securities OF the carriers
OF the country are somewhat skeptical
as to the real value of their investments.
This has resulted In considerable selling
of certain bonds which. coupled with
the lack Of demand, has brought about
the unfavorable results referred to.
New York traction. Issues displayed
weakness as a result Of the receivership
of the b. r. T. Company. and final quo
tations at the close Of the week repre-
sented considerable losses.
The traction situation still presents
many problems, and there Is a great de-
gree of speculation as to what win be
the outcome with respect 10 the Inter-
borough Rapid Transit and New York
Railway Companies.