The Washington times., 1921-03-21
RAILROAD SITUATION SHOULD
CLEAR.

to the lowering Of wages without any
general strike. distinct improver ent
thereafter In net earnings, expansion
OF traffic. and reductions in some
freight rates.
As this unfolds. the security mar.
ket should be greatly heartened.
Spring unquestionabIy will bring
definite action on steel prices and
steel wages. 1t is impossible to
comprehend the full and varied ex-
tent Of hesitancy and inaction
caused by the uncertainty over the
course which Judge Gary will fol-
low.
Steel plays . part in such a be-
wildcring variety OF industries that
the deadlock in II has an injurious
effect in unnumbered directions. That
a deadlock does exist Ia proved by
the virtual cessation Of ordering and
the collapse in output.
The Niagara OF gold pouring into
this country from many parts of
the world must shortly wear down
the high money rates.
The inflow already exceeds $780,
100000 since January 1, forming the
basis for anywhere between half a
billion and a billion OF additional
credit.
This. combined with falling prices,
cannot fail to ease the monetary
strinscncy which has prevailed so
long.
EUROPEAN EXCHANGES STRONG.
Despite the total failure OF the
German indemnity negotiations and
the marching OF Allied troops
into vital German territory, the Euro
pean exchanges have displayed re-
markable strength.
Manipulation may have played some
part in forcing UP the rates on certain
| countries, but the conclusion impelled
Is that the European outlook is
interpreted by international financial
interests as having improved very
substantially.
Tho index numbers reveal that
Wholesale commodity prices in this
country continue to decline at the rate
OF fully Ia per cent weekly.
The Spring months should. there
fore. do something toward restoring
the purchasing power Of both our
enormous agricultural population and
our Industrial workers whose wages
have been or are going to be reduced.
The full influence OF lower living
costs cannot be gauged. 30 much will
1t accomplish In the tightening OF the
burdens OF labor. business and
agriculture alike.
The effect. too. upon our ability to
compete in the worlds markets Is a
consideration OF magnitude. because
already American manufacturers nnd
themselves outbid here and there by
European competitors who pay for
their materials and their labor in de-
preciated currencies.
SPRING PROMISES BUILDING.
Spring. too, promises to bring ac-
tive building. road making and other
, construction activities.
Most building materials. including
brick. cement and lumber are AL
ready substantially below last years
prices; iron and steel are headed
downward; wages in the building
trades may or may not be cut In
the near future, but at least .he
production per man is increasing !,
funds for building purposes will be-
come more readily available.
l. Financial and business leaders are
very well satisfied with the new Ad-
ministration's activities and an
nounced policies.
1t is more than possible that the
next three months will witness help
full developments OF the hrst magni-
tude in our relations with Europe,
and perhaps also with Mexico, both
now on most unsatisfactory and
crippling basis.
COPPER, RUBBER AND COTTON.
The present abnormal weakness in
such raw materials as copper. rub