Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-07-25
WAGES AND FREIGHT INCREASE
EXPECTED SOON WILL AID BONDS
Low-priced Rail Securities Have Failed
Thus Far to Show Expected
improvements.
improvements.

I ments during the approaching season.
In this connection it may be noted
that the steady outflow of gold from
| this country has been supplanted. at
least temporarily, by a moderate net
| inward movement of the metal. and
| this in a measure relieves the source
of pressure against credit facilities.
Commercial and industrial credit re-
quirements. moreover, may be expected
to become somewhat less pressing
should the tendencies toward price
recessions and reduced volume of bust
ness continue. While credit will be
available to meet the country's essen
tial requireme nts, there continues to
be no prospect of its being available
except for such use.
Important Part In Rehabilitation.
Under the caption, "Exerting Our
Strength Abroad the concluding
paragraphs of an exhaustive article
on "Europe's Economical and Indus
trial Recovery" appearing in the July
bulletin of the Guaranty Trust Com
pany. New York. Albert Breton has
this to say:
The fact that the people of the
United States have lent nearly ten
billion dollars to Europe through gov
eminent channels and more than two
billion dollars through private ave-
nues. without which not only the re-
cent progress in Europe's rehabilita-
might have been doubtful, should not
be overlooked. Twelve billion dollars
represents a huge liability for even
America to assume. And, further
more. it should be remembered that
this government has agreed to defer
payment of interest on it's loans to
allied governments for three years.
The people of the United States
are not Indifferent to Europe's fate
AS soon as we have made our own
economic readjustments the fact that
we are not Indifferent will be patent
to all the world. for then we shall ex-
ert our full strength abroad. 1t is
only question of time as to the
United States playing a great part in
the financial and economic revival of
Europe.
There will be commercial and
financial rivalries between the nations
OF Europe and the people of the Unit
ed states, of course. but so long as
such rivalries enrich the world by
creating greater effort, service and
production they will be healthful and
wholly desirable But, in so far as
possible. the guiding motive in the
future should be universal co-opera-
ton. The various peoples Of the world
should supplement and complement
each other to the fullest extent in
an economic league of nations for the
social. political and economic better
ment of all mankind for true and per-
manent peace and prosperity
Unemployment Decreases Extrav-
agance.
The constant movement for higher
wages is being resisted in some quar-
ters," says the Bache Review. IAN
oversupply of inefficien labor is being
met by cutting down forces, as in the
case of the Pennsylvania discharge
of 10000 men and by closing down of
factories like the American Wooden
Mills, releasing large numbers. AS
this proceeds labor, deprived in spots
of its income, will be inclined to stop
exfravagant o1ying, and then demand
for goods, especially Injuries, will de-
cline.
Then. too, the demand for necessi-
ties from other countries as their peo-
Piles get to work for themselves will
gradually decline. The
period Of REIMBURSEMENT. if gradual,
may be less severe in its effects. but
the tendency will be to cut out ex-
and induce the rank and
file to sounder views of things and
to real industry. There is no certain
ty, however, Of immediate basic read
justment"
Visiting at Erkton.
William Selby, vice president of the
American National Bank, is spending
several weeks with relatives at Elk
ton, Md.