New-York tribune., 1921-10-17

/ involve such serious complications t
ought to be avoided.
Both the men and management have
been maneuvering for position, and
there is no assurance that the strike
order cannot be cancelled. The heavi-
ness Of the rail shares last week. par
ticularly Friday afternoon and Satur-
day morning, represented apprehension
lest a crisis would be reached. The
prospect of cutting freight rates,
which was discussed by executives at
Chicago Friday, was associated with
wage reductions, and hence possibly
strike.
When the signs of actual defation
first appeared on the economic horizon,
as early as the fall Of 1919, the prin-
'ciple had many supporters in theory.
Business men seemed to recognize its
value, but, humanity enough, each in
dividual was inclined to recommend
dehation for the other fellow instead
/ of for himself. Spokesman for virtually
every industry perceived special rea-
sons why his trade should be exempt
from the general downward readjust-
ment. But one by one the sweep Of
the movement reached the outposts of
the business world, and the moro
favored industries at last were affected
Railroad rates have long remained out
of line and railroad men realized the
disparity. They have steadfastly
argued that rates cannot be lowered
until further pruning down of
wages has been accomplished Now,
at least, debating railroad rates has
attained place irs practical discus
sions, and seems near accomplishment
Under the stress OF necessity ever
go many folk are learning how to do
the hitherto impossible-to reduce
costs. The process calls for genius in
management and challenges the per
manence Of tenure OF the misfts in the
world of give and take
Aside from the moderate weakness
OF the rails there was another week of
drifting In the stock market The slen-
derness of the reaction of industrial
stocks In the last fortnight means that
the market has been able to retain the
major portion Of its gains since the
slump Of quotations to the most de-
pressed levels OF the year late in Al
gust.
In q sense, then, the vacillations Of
recent days are capable Of favorable
interpretation. The hesitation at the
new level Of prices represents q dispo-
sition on the part of spectators to
wait upon the economic event for guild
ance. If general tie-up OF transpor-
tation should come, as threatened, it
might disastrously check the mending
tendencies IN business and would halt
efforts to reduce unemployment.
The United States Senate Is In the
process Of determining what is liv-
ing wage for banker. 1t last week
adopted a resolution introduced by
Senator Overman to investigate the
pay roll of the Federal Reserve Bank
Of New York. The action was precipi-
tated by irritation over the report
that some Of the officers Of the regional
bank were receiving salaries ranging
from $4,000 to $4,000. Senator Over
man comes from North Carolina, where
dollars go further than in New York.
He might, therefore. disagree with New
York bank directors as to what Is an
adequate wage for banker.
The board Of the Federal Reserve
Pank in this city, however, has to meet
the competition Of member banks In
attracting efficient personnel What
over Just wage might be- this much
seems beyond dispute: the directors
Of the Federal Reserve Bank OF New
York would be prof1igate and inexcus-
ably wasteful if they limited their
salary inducements 80 radically as to
attract only mediocre men to the insti-
tuition The initiative in banking mat
ters At this center lies with the Re-
serve Bank to such an Increasing de
gree that it would be penny wise and
pound foolish to the nth deqrea TO