The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-03


Will receive tangible evidence of trade
changes that have come with the end
OF the war Wall Street scarcely was
prepared for the move after the Beth
lehem Steel Corporations action and
some selling OF stocks resulted.
What Is happening In the steel In
dus;ry Ia taking place in other indus
tries for the ultimate good of the coun-
try. The process ~ trying and necessa-
rily attended with hardships, but It is
inevitable. and the sooner tho situation
Is faced "a something that must happen
before business returns to a peace basis
the better 1t will be for 10000, 900
Americans who will be affected by It.
Much the same process is taking place
abroad. and the January decline in Lon
don's representative Securities reflected
the effort OF the great British security
market to discount changed conditions
in world trade. Another factor OF great
significance has been the sharp reduction
IN ocean freight rates announced by
Great Britain and the United states.
Reduce shipping Rntes.
That acton by the great Government
shipping boards IN cffeGting q G6 % per
cent. reduction in transatlantic rates
contrasts sharply with the piecemeal re-
SESSIONS by which steel manufacturers
hope to flnd level at which their large
productive capacity will be employed.
The same course cannot be pursued In
all cases and II may be that tho steel
trade will develop as much domestic
buying through successive revisions as
It would by reaching the ultimate level
more quickly through one thoroughsoing
reduction with the fiat announcement
that no further recessions need be ex-
pected.
The shipping industry took the short
est road 10 develop O large ocean freight
business Immediately. There Is no doubt
that II will be effective, and the propA-
bllity Is that an immense increase IN
our foreisn trade viii result. This Is
OF all things to be desired. since We
have an enormous food surplus to dis
pose OF and II is highly important that
oppressive freight rates should not be
permitted to retard the movement The
lower freight rates have brought for
eign inquiries for tin plato and tho
products OF our steel mills.
These are likely TO increase provided
nothing happens to disorganze the mar
ilet. since 1t is calculated that our great
mills with exceptional facilities for pro-
ducing large tonnage orders can COM
pete advantageously with English man.
ufacrirers for Japanese and other far
away trade. The movement must be de-
veloped, but 1t has been made mate
rally easier by reduction In transatlan-
tic freight rates. As our merchant ma
rine Ia developed shipping facilities will
enlarge and the chances OF attracting a
broad foreign trade will be improved to
the extent that present shipping condi-
tons arc more favorable than those
which prevailed before the wnr.
Another Problem.
Another factor OF real influence IN the
! investment markets is the extremely
complicated labor situation, which Is
causing great uneasiness abroad as well
as here. In this country It is difficult 10
handle because labor leaders insist that
war wages shall be continued. notwith-
standing their own statements that the
surplus OF workers Is reaching alarming
proportions at industrial centres. This
is why they are asking for the prepos-
ferrous immigrant exclusion bill. through
which they hope to exclude for four
Years all Immigrants except Canadians
and Mexican5 aud few special groups
IL IS conceivable that such a law might
result in keeping out OF the country that
large body of foreign born workers who
left TO serve in their native armies as
soon as the call for volunteers was sent
out.
! Those who ia not become citizens
might he debarred from returning 10
! their families in the United States If the
extraordinary measure should be en-
acted. The responsibility Is clearly up
10 Congress ard II that body desires to
add to the difficulties of the after war
reimbursement Il will do the bidding OF
| the labor leadern and enact the proposed
law. Judge Gary and other employers
OF large numbers Of men declared that
there will not be large unemployed
class to provide for after the various
projects for public Improvement work
are started.
The labor disturbance IS by no means
| local phenomenon. but IS assum!ns
| worldwide proportions, with the spread
of Boishs vis1l and the dream OF Elk
hour day as suggestive Incidents OF an
| overwrought labor situation We have
no Bolshevists In this country. but
! !. W. VS. are present always to re-
mind US that the dissatisfied class is
| organizing into various types o, con-
centrated disorder. Such conditions are
largely due to tho war and competitive
bidding by rival Industries for services
! of the small group OF available work
| ers which the draft boards did not
| reach. But the war Is over and II
| is apparent from what has happened
! at the Peace Conference and from
| extraordinary manifestations elsewhere
| that labor is asserting itself in lines
| along which capital alone once was con
/ suited The change Is significant and
/ may be productive OF real good, provided
! that demands be not too drastic.
Paying the Bill.
The latest Treasury returns show that
! this Government still is making large
payments for war expenses. notwith-
| standing the fact that active fighting
ceased nearly four months ago. The
! January outlay was sl.50oooo.ooo for
| ordinary war expenses exclusive II
| loans TO the Allies. That amount is
only s55 900 900 less than was similarly
paid out in November. Calcula-
| lions covering the Governments aggre-
! gate expenses during twenty-five months
| Of war amount to s26.356,0oo.o 900.
Sir Edward II. Holden estimated
Great Bri;ain's outlays as $4,000. 900.
, 900 during her four years OF strife and
!! s3s. 1850, 100000 incurred by Germany In
| the same period,
Our Treasury is financing It's current
| expenses largely through borrowings
| from banks and purchase OF the Gov
ernment's short term paper. II will be
| necessary for the Government 10 place
| another great war Issue with the public
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