davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1921-12-11
TauO Possibilities

Two things only will make it possible
for the world to get on it's feet again.
One is for each country which has
fallen into the quagmire Of fiat money
to set its face resolutely against fur
ther temptations. to reduce as far as
possible its military and naval ex-
pendltures and to put its fiscal house
IN order by prompt and vigorous an
phcatlon OF taxation with view of re-
establishing budgetary equilibrium.
But taxation as excessive as that en-
countered to-day even in the United
States, not to speak of the rest of the
world, cannot be continued without
hazard. No country can long endure
the application of so large a part of
the social income for purely unpro-
ductlve consumption without suffering
a marked retardation in the tempo Of
ltsh economic progress.
But, in the second place. the neces-
sary budgetary equilibrium will be
made possible only and concurrently
with stablization Of TIL exchanges.
This is also from the very nature Of
the case an international problem
which must be met by international
methods that it is not our function
here to discuss.
1t is clear then that in the solution
u lne WorlcS present economic and
fiscal problems the United States must
also play its part. The solution can
be achieved only by a realization OF
the fact that as this gigantic conflict
was universal in its scope and in it's
effects, so the remedy must be equally
universal in character. Whether we
desire it or not, we have all become in
tegral parts of stupendous world
mechanism, no portion of which can
cease to function without inevitably
affecting the activity of the rest. The
slogan OF economic and fiscal reform.
must be: "Set your own house in
order, but join with your neighbors
IN setting the world house in order"
10 this imperious demand practical
policies must be adjusted; for the sake
OF this economic necessity old shib-
boleths must be discarded and outworn
political programmes relegated to the
dust heap. Not aloofness, but con-
structive cooperation in both politics
and economics must hcnceforth become
the watchword of the United States
(The foregoing represents excerpts
from q book on currency imitation and
public depts, Which Professor Seligma1.
has prepared for the Equitable Trust
Company ny.-Financial Editor.)
New-York tribune., 1921-12-11
jewelers. Fear Competition

The comparatively low price at
which jewelry imported from foreign
countries, especially Germany, can be
placed on the market here has begun
to leave profound impression on the
cheap jewelry manufacturing ccnters Of
Providence and the Attleboros, ac-
cording to reports received yesterday.
Even in the hearts Of tfe staunchest
and strongest optimists have pessi-
mistic and portentous thoughts found
their way, it is said.
With foreign manufacturers, by
virtue of an almost absurdediy low
scale of wages contrasted with the
high basis prevailing here. able to re-
produce an article of jewelry made in
Rhode Island at price approximately
one-third lower, the future outlook is
regarded by jewellers as decidedly
gloomy.
New-York tribune., 1921-12-11
mother Big Change

Not quite so striking as the COM
parision between Pere Marquette, until
few years ago one of the weakest
roads, and Chicago, Milwaukee e. St.
Paul, until few years ago one of the
strongest, but of greater basic i'm
portance, is the change that has taken
place in the relative strength of New
York Central and Pennsylvania. AS
nearl yas can be estimated New York
Central will earn about per cent in
It's stock, whereas Pennsylvania will
fail to earn even the 4 per cent which
1t IS now paying on its stock
it is not fair, however, to Jump to
the conclusion that the Pennsylvania,
until 6 few years ago one Of the
strongest railroads in the United
States, has permanently become one of
the weaker roads. 1t is fair, however.
10 express the belief that the New
York Central, which before government
operation had by no means as high a
credit as Pennsylvania, has definitely
joined the strong roads. Its percent
age of funded debt to stock still seems
too high, but the assertion which has
been made by New York Central en-
thusiasts that it isn't that the funded
debt is tco large, but that the stock
IS too small gets certain plausi-
bliity' from the showing made by the
company in 1921, and in fact during
the last three or four years.
During government operation the
Pennsylvania Railroad received a par
ticularly hard deal. Whether this was
inevitable under the traffic conditions
that prevailed is a question that need
not be discussed. The fact remains
that the company's property was "used
rough and the organization pretty
we'll chopped Recovery was bound to
be sloy. 1t is only in recent months
that the Pennsylvania management has
begun to get grip on its expenses
comparable to that which the New YORK
Central has shown for considerable
part Of the year.
New-York tribune., 1921-12-11
By Professor Irving Fisher

Nc tSilA0ItC0s
These two sorts Of stability are in
extricably interrelated. 1t is usually
when government is subject to the
danger of breakdown and cannot bal
ance It's budget that it resorts to that
form Of forced loan called irredeem
able paper money, thus causing none
tary instability. And conversely, such
debauching of the monetary standard,
while it puts off the evil day, is often
itself the cause of political instability,
unrest and even revolution. The French
had saying that after the paper
money printing press comes the gull
lotine, a saying not altogether inapt
for Russia to-day.
And SO, to solve the chief economic
problem Of the day, that Of stabilizing
the moneys of the world, we cannot
ignore political and governmental con-
ditions. The first step is to stop in
fation, where imitation is still gong
n. Biut no government will stop in
fation, until it can balance its budget
and 1t now appears that it cannot bal
ance it's budget until it can reduce
the burden Of militarism, and it cannot
reduce the burden of militarism until
there are international guarantees of
keeping the peace, and there car be,
in my opinion, no adequate interna-
tional guarantees of keeping the peace
except through the league or a league
Of nations. The League of Nations,
therefore, is linked with the problem
of monetary stability.
New-York tribune., 1921-12-11
Injustice to Debtors

In practice this problem of correct
ing an injustice is immensely compli-
Gated by the fact that new contracts
are constantly being made at the new
price levels. Defation was wanted to
DO justice to pre-war creditors: and
doubtless it did so "to the few pre-
war creditors still surviving" But 1t
did injustice to the much larger num-
Der of war and postwar debtors.
We must recognize the fact that
every disturbance of our standard
makes it impossible to do justice TO
everybody, for exising contracts in
clude those made at every stage OF
depreciation; and it is physical i'm
possibility to make separate stand
ar for every separate contract. Ev-
IDENTIFY the best that we can do is to
strike an average. If all debts now
existing had been contracted in 1914.
before the war, ideal justice would be
rendered by restoring the pre-war
sovereign, dollar, franc, etc. (not
merely technically, but in actual val
ue), by such defation as would reduce
the general level of prices to exactly
that of 1914. If, on the other hand,
it were true that all contracts now
existing happened to have been en-
tered into in 1920, justice would re-
guire that we should maintain the high
level of prices of 1920 precisely as it
was in 1920. Undoubtedly the best
average we can strike lies between
these two extremes.
| doubt if the most literal adFerent
OF the theory of technical obligation
of contract would urge that the pre-
war franc, lire. mark or rubIe should
now be restored. England long ago
gave up the practice. although sane
toned technically, of imprisonment for
debt because it was found to be not
practical nor really fair play. Even
less practical and less fair would be
demand for return to the old pars
of the money of continental Europe.
Only bankruptcy and ruin could follow
such an insane requirement. 1t would
mean debating the French price level
to 40 per cent of what it now is, the
Italian to % per cent, the German to
per cent, the Austrian to less than
l per cent and the Russian to less than
one-tenth Of ] per cent. This would
mean multiplying the burden of the
debts in France two-and- half fold,
in Italy four fold, in Germany seven
teen fold, in Austria over one hundred
fold and in Russia over thousand
fold. This would bankrupt the people
of the governments alike. And even
this drastic defiation would only bring
US back to gold and not TO the pre-war
purchasing power of gold.
We must put aside technicalities and
face the facts. The only solution, at
once just and practicable. is that the
currencies of continental Europe shall
be stabilized at greatly reduced valus-
tions as compared with their pre-war
values. The sooner this is recognized
the sooner will the trade, finance and
industry of the world function more
normally.
&C 1921. United Feature syndicate.)
New-York tribune., 1921-12-11
Demand for Tanks

Due to better conditions in the oil
industry there has likewise been dis
tinct improvement in the demand for
oil storage tanks and consequently for
plates. The plate market is consider
ably active, from the standpoint of in
quiry, but prices are out Of line, say
producers. One interest reports that
1.50c represents the top, and not the
bottom of the plate market. and that it
is refusing to accept business at these
prices. Plate makers in the East have
been undertaking district producers,
with the result that business ordinar-
lily placed in the Mahoning Valley has
gone to Cambria Steel and other East
ern interests.
In pig iron the most important re-
cent transaction involved purchase of
$500 tons of basic by the Trumbull
Steel Company. The reported price
was sic, at furnace, at which basic
iron has been pegged for a month
In most directions finished steel buy
ing is tapering, rejecting year-end
dullness and the approach of inven-
tories. Some contracting for 1929 de-
livery has been done, on the basis of
2.25c for blue enameled, 80 for black
and &c for galvanized, base cages.
New-York tribune., 1921-12-11
Favora1ie TO Frisco

The st. Louis-San Francisco reor-
ganization was not a particularly
drastic one. On the other hand the
development of the territory served
and the break on what would have
been normally competitive business. as
between the Frisco and other roads in
the Southwest during government con-
troll, was favorable to the Frisco
Furthermore, the Frisco has been show
ing particularly good operating results
in the last eight or nine months and
had the financial structure of the new
company been bit more conserva-
lively built, the Frisco would be a
candidate for classification among the
stronger roads.
The Missouri, Kansas & Texas re-
organization was sound one finan-
cially, and estimates for 1921 indicate
marin of over $4,000,000 above in
come ond requirements.
Operating statistics compiled by the
Interstate Commerce Commission show
that in September the average revenue
srainload was only 375 tons This is
way lower than modern standards OF
railroad operations Justify. There may
be some reasons other than the physi-
cal condition of the property which
accounts for this, but until the COM
pany's ANNUAL report for 1921 is avail
able. with full statement from the
New-York tribune., 1921-12-11
Little Relief
From Dizziness
Seen i'm Steel
Approach of the Inventory
Season Is Barrier to
Trade Improvement Until
After First of New Year
Progress ON Merger Plan
Pipe and Tank Business
Better, but Profits Are
Small, Assert Producers
Special Dispatch to The Tribune

TULLNESS continues to rule
h in the steel industry and will
continue until the end of the
year at least. Any improvement
which comes after the holidays is
not expected to be of u striking
nature, but rather to be slow and
steady.
Mr.. Campbell still contends that
restoration Of normal business condi-
tions depends to large extent upon
lower freight rates He is devoting
considerable time in an effort to have
freight charges reduced, consulting
with leading manufacturers and with
railroad presidents in the East.
j. B. Kennedy, chairman of the
board Of directors and chief executive
officer Of the Brier Hill Steel Company,
says merger of the Independents will
be nebenficial in many respects and
will assist them to meet the prices of
the Steel Corporation on more equita-
, Bile basis.
!
of the United Engineering and Foun-
dry Company President r. G. Biggert
Jr., discussing the future of business,
pointed out that investment of capi-
tai IN foreign countries will be profit
able and will attract a large amount
of money from this country.
This will be particularly true as
regards Germany" he states, "but in
greater or less degree will apply to
almost al foreign countries. At pres
ent conditions are not ripe for this,
but as governments become m ore stable
and our people learn the possibilities.
foreign investment will surely become
an important factor in our CONNER
clal relations. because of the certainty
of rising values"
In addition to being the inventory
season when manufacturers endeayor
to reduce their stocks, there is an
ADDED motive for that reduction in
every state in the Union, excepting
Pennsylyania and Delaware, according
to Robert Garland, chairman of the
Chamber of Commerce Of this city.
Mr. Garland says that in every state
except these two, there is a tax on
stocks OF comm modities in hanr as shown
by the annual inventory, for which
reason manufacturers and merchants
struggle to reduce them to the lowest
possible basis consistent NTH safety.
Mr.. Garland said he recently had
occasion to look into this tax question
with reference to large steel COM
pany in Ohio, and ascertained that last
year it paid an inventory tax on manu-
factured products which were still on
hand, amounting to nearly 100000.
Mr.! Garland is making an effort to
show manufacturers in other states
the advantages which Pennsylvania
manufacturers enjoy in this, as we'll
as in other particulars.
New-York tribune., 1921-12-11
Z endency OF Prices

The tendency Of prices and wages
Will be toward general level" he
says, "and there will eventually be a
substantial equalization the world
over. When this has occurred the
comforts and conveniences which men
enjoy will be distributed with greater
equality than ever before and this will
make for peace in industry and peace
between nations.
eve must buy many things from
foreign countries which we would pre-
fer to make at home, and to endeavor
to prevent this by excessive tariffs or
other artificial means will not be wise.
Certain tariffs will be necessary to
regulate this influx, but they should
be we'll considered. The should not be
so high as entirely to STOP importa-
tions, and should be gradually re-
duced as equalization of costs pro-
ceeds."
The advantage which pipe makers in
the Chicago distrce have over makers
in this district was emphasized in the
last two weeks in the placement of
tonnage, in respect of freight charges
Chicago has an advantage of ST ten
over this district in shipping pine to
the southwest. The Pure Oil Company
divided an order involving 1900 tons
of S-inch pipe with the Sheet and Tube
Company at Youngstown and the Steel
& Tube Company of America. of Chi
cago, commonly known as the Mark
Manufacturing Company The latter
interest also secured the 13,O00-ton
pipe order placed by the Sinclair Oil
Company involving various sizes.
While business in line pipe continues
active prices are unsatisfactory from
producers standpoint because of keen
competitive conditions, and such pipe
is reported to have been sold at $40 to
S25 ton below other grades.
New-York tribune., 1921-12-11
Holidays This Week

Monday, December 12-In Mckee,
Our Lady of Guadeloupe.
Thursday, December 15-In Brazii'
State of Sac Paulo
Friday, December 16-1 n Brazil.
State of Goyaz; New Zealand, Canter-
bury. provincial anniversary; South
African Union, Swaziland, Dingaan .
New-York tribune., 1921-12-11
Morale a Question

Prior to government operation the
loyalty of Pennsylvania employees and
ofilcers was conspicuous example of
good railroad management. If this
morale has been restored, as the atti
tude of the employees of the PennsyI-
vania in the fact of the recently threat
ened strike would seem to indicate. the
showing made by the company in the
frst eight or nine months of 1921 is no
criterion of what the company can
earn in 1922.
On the other hand, the PENNSYLVANIA
general terminal situation, as regards
capacity and demands thereon. has not
changed materially from what it was
before the war. The steady growth of
terminal costs in American freight and
passenger business has been one of the
outstanding features of recent Ameri
can railroad history. Whereas. there
Tore, the Pennsylvania's earning ca
pacity must not be underestimate be-
cause OF conditions as regards the re-
,arlons between labor and officers, that
nave prevailed for three years. neither
must it be overestimated by neglect Of
consideration of what will take place
when a period Of industry acticity ar
rives.
Among the thirty roads for which
estimates have been made for 1921 tha
Atchison, Topeka & Santa Fe, the Ches-
apeaRe d Ohio, the ChIncago, Burling-
ton d Quincy. the Chicago Rock Island
q Pacific, Delaware g. Hudson, Illinois
Central, Kansas City Southern, New
york Central, Norfolk & Western. Pere
nnarquette, Southern Pacific and Union
Pacliic stand out as strong roads and
Of these C. & O., X. C. s., N. y. C. and
L. ~ are nouveaux riches.
Of the thirty roads, Atlantic Coast
Line, Chicago & Northwestern, Great
Northern, Lehigh Vatsey, Louisville &
Nashville. Northern Pacific and penn
syivanla have dropped, at least tenn
porarlly, from the list of strong roads
INTO the list of weaker roads. Judged
ny the records of the current wear
me me other roads, that is, Baltimore e.
Onio, .,, Erie, Missouri. Kansas e. Texas.
Missouri Pacific, ST. Louis & San
francisco Seaboard Air Line, South
ern and Wabash, have remained
among the weaker roads. This needs
some qualification as applying to st.
Louis-San Francisco and to Missouri,
New-York tribune., 1921-12-11
Prosperity Built ON Inflated T ap er
Values Unstable and Illusory, Says
Professor Seligman
By Edwin r. A. Seligman

McVar Professor Political Economy University
THE first place existing public debts they
have been DUE primarily
almost inevitably
the shape either of rredeemabe bills
bank The gneray
found irresistible consequently with it's
evils public
umuated budgetary deficits which
New-York tribune., 1921-12-11
Marland Oil Net s2.O95.l32

For the nine months ended Sem
tember 80, the Marland Oil Company
and subsidiaries reported a net income
of S2,095.132 Net earnings amounted
to S720,050. Gross earnings were ST.
221 1856. ~'
New-York tribune., 1921-12-11
Progress on Merger

Much progress has recently been
made in the merger plans involving
the many independent steel concerns.
James A. Campbell, of the Youngs-
town Sheet and Tube, the moving
spirit of the consolidation, went to
New York this week, where he attended
a meeting of directors of the Con-
soidated Steel Corporation, and later
left for Washington. The Consolidated
Corporation is the export agency for
several important independent steel
companies. Export steel business of
the Republic Iron and Steel, Youngs-
town Sheet and Tube, Brier Hill Steel,
Trumbull Steel and Sharon Steel Hoop
is handled by the New York agency
Considerable tonnages of sheets have
been rolled in the Mahoning Valley
for export to Japan during the last
three months
New-York tribune., 1921-12-11
Scrapping Old Money /
Value Europe's Remedy
Forcing Currencies Back to Par Would
Ruin Nations Unable to Meet
Larger Debt, Says Fisher

(Ths Of ive articles from the Profe
lrvng Fisher of Univers situation
arope first hand The article m
appear IN he Sumday-Fnamciel Editor.)
By Professor Irving Fisher
TTNHE need to-day sabizaon Politically Wa nos
governments stable among them E
IA nomcay trade, industry and sta.
which that industry NAV
New-York tribune., 1921-12-11
Ne'U Alignment Of Strong and Weak Railroads
Revealed by This Years Struggle for Repenue
1921 Earnings Show Many Erstwhile
Leaders Fighting to Avoid Deficits
as Others Accumulate Income
By William f. Hooper

PPARENTLY Pere Marquette will this
stock after having paid dividends
prior stock, while
other words,
roads we'll remember that make completely
strong
New-York tribune., 1921-12-11

SSAA AahVAS
October earnings statements for
most of the larger railroads are avail
able and it is possible to make fair
approximation of what the twelve
months net earnings, after the pay
ment of taxes for the roads, will be-
BY taking the same percentage of gross
earned in the last two months of 1921
as was earned in the last two months.
on an average for FIVE years, and ap-
plying to this the operating ratio for
Octoer, it becomes possible to get a
fairly close approximation of the
twelve months, 1921, net figures before
adding income from other than rail
road operation, and before interest
charges. Interest charges can be
based on last years interest charges
and in mot cases not be far wrong.
To estimate the amount that will be
available on the stock, however, it is
necessary to make rough guess at
other income, such as dividend income,
credit or debit balance for hire OF
equipment, etc. Only where it ap-
peared possible to do this with rea-
sonable degree of accuracy was it done
and footnotes in the accompanying
table are self-explanatory.
New-York tribune., 1921-12-11
Tobacco Notes Sold

The $4,o0o,00o ten-year sinking fund
7 per cent gold notes of the Tobacco
Products Corporation offered by the
Guaranty Company, of New xerks have
all been sold.
New-York tribune., 1921-12-11
Rein Hation Danger

The danger ahead seems to me to be
relnfiation as reaction against tha
recent rapid defation, which was .
false remedy for the imitation Of the
war. In some respects the presenS
situation in the United States ia he-
ginning to bear a rough resemblance Ia
the situation in 1896, when Mr.. Bryan
wade his entry into politics az the
spokesman of infstion
In 1896, when Mr.. Bryan came to the
fore, prices had been falling ever since
the Civil War, when in 1865 they stood
at the highest point in AMERICAN his
tory. Between that high point in 1855
and the low point in 1896 prices in the
United States shrank by nearly two
thirds-that is. the dollars buyinp
power was multiplied nearly threefold
within generation.
| shudder to think what the conse-.
quences would have been if Bryan had
been elected and we had adopted tha
free coinage Of silver at Is to /. And
yet. even though we did escape silver
imitation, we began to suffer more
gradual imitation from gold. so that
shortly after the beginning Of this
century the whole world, which in Brv-
ans time had been complaining of slow
business, found itself complaining quite
as Justify of the "high cost of living.-
No one thought of giving thanks for
high prices as cure for the trade de-
preston which all had been complains
ing of few years before. The Bryan
idea had been to go back to "the dol
lar of the daddies."
I dwell on this fragrant example Of
fallacious reasoning, not only because
we may soon see something much like
recrudescence of it, but because we
have just been suffering from the same
sort Of wrong reasoning inverted. For
nearly two years the public opinion Of
the world has been victimized by the.
idea of returning to the pre-war stand
ards. just as Bryan invoked the IDOL
lar OF the daddies," so recent defation-
lists have been invoking the ''pre-war
normal" Just as he proposed imitation
to cure defation, so they proposed de-
fation to cure imitation And lust as
the imitation following 1896 failed as a
remedy for def1ation, so the dehation
following 1920 failed as a remedy for
imitation. BY the credit restrictions of
1920 and by the retirement of paper.
money, the public command of cur
rency is SO cut down that prices have
fallen half way back to the pre-war
level. Very few would now demand
that we keep on through the other
half. Deaation has given no real relief
from the high cost of living, but it has
brought new trouhiec of itc own