New-York tribune., 1919-01-23

UIOuSHt HiSH ueSfeS VI PIOSpci-
ity. Net earnings for the fiscal year
of 1918 were II per cent on COM
bined capital and surplus; on stock
alone 19 per cent. A forty-nine-
year average for our national banks
shows an average, on the stock, of
nearly Is per cent. These, be IL
noted, are the averages for $500
different banks, conducted with
every imaginable degree of business
acumen. Whether it is due to a
process of selection or what, the
average of business ability in bank
ing seems, judged by the bare re-
suits, higher than in almost any
other occupation.
The mental processes of the pres
ent Controller seem past under
standing. Each departmental report
of banking conditions is a pean,
each annual report a dithyramb of
our colossal and overfowing bank
ing wealth. Here is a sample: To
compute and compare present condl-
tions with those of bygone days, the
number of failures in the year of
the greatest banking prosperity, and
of almost the lowest general busi
ness mortality ever known, are set
against 1893! That was the year of
the greatest number Of bank fail
ures known since the national sys-
tenn began. On this basis we are
told that "the percentage of liabili
ties of the failed banks in 1893 was
500 times more than in the past
year of war and crisis"
There seems widespread fear in
almost all the countries of Europe
of shortage Of labor. The "deci
nations" of war are in reality never
more than a few per cent. But they
nevertheless tell; and there is gen.
eral disposition to curb emigration
and prevent an exodus as far as
possible. This will inevitably have
much effect in shaping taxation.
Wages and the cost of living in diff
ferent lands may tend more Or less
to- an equality, but if there is a
heavy weight Of taxation in one
country and not in another there
must be corresponding difference
Of income or emigration is newt
able. That is the real problem
which faces the nations with vast
war debts.
On the other hand, in neutral
countries (and in the United States,
where the war debt is relatively
smalD, there is a tendency to gold
imports and corresponding rise in
prices, wages and costs, so that the
advantage is slight, and can be Of
no long duration. A more serious
matter is the taxation Of capital.
Capital is like quicksilver, and will
leave a land which attempts to bur-
den it unduly.
A more acute problem for the
United States may be the effects of
prohibition. If it should really oc-
casion a considerable exodus of the
foreign population we should have
little need for a ban on immigra-
tion. The shortage in our normal
human imports has been exagger-
ated. But, even if it has meant no
more than from million to two
million able-bodied workers, the eff
feet is appreciable. That is almost
the sole source Of replenishment or
our depleted farms. And until that
depletion is made good the Fl. G. L.
will be with us to promote hign
wages or incessant strikes.
There is an inertia in the move
ments of even as plastic and mobile
a population as our own. The move
ment away from the farms hao
been steadily growing. 1t was
merely accentuated by the war
Great numbers Of the thrifty, who
have pocketed their war earnings
will return to buy farms and set up
for themselves. But the attraction.
of city life and the taste Of high
wages and short hours will probably
! be too strong for the majority
Farm earnings were so low before
the war and present prices seem sc
abnormal that present profits from
the farm seem not sufficient tempta
ton, especially to the native Amer
ican. Students cf population note
the steady infiltration Of the for
cign element on the farms II there
is now to be no inflow from this
sol1rce If may he some vearS To come