The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-25
Relieving Bank Strain.

1t Is probable that loans for other
countries and municipalities will be Of
fered here during the next few weeks. as
investment inquiry is broad enough 10
justify the bankers in underwriting more
Issues OF that kind. In addition to for
eign loans, note offerings by Industrial
corporations OF high credit command a
ready market and serve the useful pur-
pose OF transferring 10 the investing pub
lie through the sale OF FIVE or ten year
obligations the heavy floating indebt-
edness which has been carried for
months by commercial banks. In that
manner the banks are being relieved OF
a heavy burden and credit is released
for commercial borrowers. who are still
clamoring for all the accommodation
they can obtain. That movement IS high
~ important and II continued viii make
defiation ~ painless as possible, because
the outstanding fact IS that the whole
country and pretty nearly all its indus
tries will be affected by the nationwide
effort TO readjust prices to a level at
which the public will buy in normal
fashion. This is an extremely important
process, because all business Will be de-
pressed and the country will undergo
serious Industrial reaction unless the
manufacturers and sellers OF merchan-
disc can come to terms with each other.
Lfquidnting Labor.
The wage earners are beginning 70
realize that condition because. notwith-
standing misdirccted efforts to obtain a
six hour working day IN a few indus
tries. the rank and file OF workers are
evincing greater enthusiasm for their
Jobs. which means that American in
dustry Is developing increased efficiency
ana that the knight OF the dinner pail
Is doing what he can 20 keep II filed
Railroads, mills and great industrial
plants are finding Il easy 70 obtain
what labor they need Hundreds OF men
have been laid off for no other reason
than that there was no work for indif-
fercnt or incompetent hands TO do.
War forces arc being dcmobilized on a
peace time basis and slowly but surely
the elimination OF the inefficient worker
Is progressing, 10 the good Of Industry
In general and workers In particular. 10
is an interesting process and means
that business IS being stabilized again,
not on the pre-war basis, but accord
ing 70 more enlightened postwar stan
dards, which really shows that labor
IS being liquldated quietly without work.
ers fully realizing what is taking place.
Through layoffa and by working four
days a week, instead OF six manufac-
turers are readjustlng their payrols to
meet conditions imposed by lower mer-
chandise prices and a lesscncd public de-
mand.
Logic OF Events.
The logic Of the situation not tho
greed Of employers. IS forcing those
changes IL automobile makers. silk
mills and shoe factories employing many
hundred thousand workers, are con-
fronted by falling market and a greatly
reduced demand. It is obvious that they
cannot continue war time production and
pay which goes with rush work. which
would be Impractical even IN a per
cent. money market. and least OF all IN
season OF credit strain and loan restric-
tons. and this is why one manufacturing
community has developed within n few
months 20 per cent III, reased produo-