Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-03-14
FRIDAY, MARCH IA, 1919
FINANCING RAILROADS

TINE marvellous courage and re-
sourcefulness of the railroad
leaders OF the country is shown
in their determination to finance
their lines now in Government con-
troll and being operated at tremen-
dous loss, even after Congress has
left them penniless and the Presi-
dent has turned a deaf ear to their
needs, declining to call together
Congress that would enact the legis-
Iation necessary to keep them going
until they are turned back to their
owners.
The railroad managers are optim-
lstic as to the future; that goes
without saying or they would be
hcsitant about extending the indebt-
edness of the roads by enormous
sums. What the Government has
failed to do for them, the railroads
propose to do for themselves and
their example should be heartening
TO the business world in general.
That those who are supporting the
railroad loans are on the right track
is indicated by the latest bulletin
of the American Exchange National
Bank Of New York, expressing the
thought of conservative authorities
as holding that our biggest problem
very soon is likely to be that of dis
tribution involving intense activity
on the part of the railroads. SAYS
the bulletin:
The war destroyed vast
amount of capital, but the pro-
ductiNc capacity of America is
greater than before. This is also
true OF England. Canada and ia
pan, but continental Europe is
sadly handicapped by the ravares
of wal and loss of man-power. Ii
is probable that France is in bet
ter shape than is commonly be-
lteved, but she cannot resume
production to the best ADVANTAGES
until she has settled with Ger
many what the latter shall paw.
BclSlum is in similar position
Inc fecuperatiVe power of civil
l%ed countries is astonishing. Two
good crop years, accompanied bv "A.
general resumption of Industrial ,
life. will restore the prosperity
or the plain people by providing
1000 and employment for ali.
placed or restored, but America is
so rich that there will be no lack
OF money and credit for produc-
i've enterprises. Up to the end of
winch returns are available at
this writing, our foreign trade re-
mained undiminished. January.
helnS the best month in our his
tory.
How much more business we
could have done had we been able
10 secure enough ships is con-
Jecturai, but 1t would have added
vastly to the total of our foreign
trade. 1t is said that merchan
disc valued at $1OO, 900, 900 is Iviner
in the port of New York AWAITING
transportation to other lands.
claim that improved shop prac9
tices and facilities will offset biph
wages ana enable America 10
compete @ successfully with Europe
world is concerned, no burden
some surplus of raw materials or
manufactures exists. Other com
tries require all that we can spare
Tor export, and the Federal Gov
ernment and our business man
must address themselves to The
task of distribution. French ana
Eeiglum buyers are in our mar
kets for machinery, machine
tools, railroad equipment and raw
materials. Foreign business men
are not as inclined to hold off
Tor lower prices as are Americans
This is no time for us to ouarrei
with our bread and butter Nv
talking of embargoes on eynorts
of anything that we have to soil
Canada does not compare with tba
United States in wealth, resources
and productive capacity. but she
is reaching out for foreign trade
and is Offering credits to On.
ropeah customers. The Federal
Administration has expressed
Willingness to help exporters in
similar way. The banks of this
country are in position to
finance such trade to a practi1
cally unlimited extent. The Fed
cral Reserve Banks are stronger
than ever before. and money is
likely to remain in abundant sun
ply for ordinary business pur- s.
poses. though rates of interest
will tend to maintain them for
some months to come. America
will not be ruined by surplus
wealth, either in the form Of
money or of manufactures and
raw materials. while the rest of
the world so badly needs what we
can spare.
What we all need is the courage
o; the railroad managers. Retail
stocks are at lower ebb now than
when the armistice was signed.