Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-07-23
COAL STRIKE ALLOWED
TO DRIFT To EXTREMES
Railway Walkout Caused Adj
ministration to Take
Firm Stand.
WANT WAR WAGES ~ rEACE
II Strikers Win. Means Permanent
Incrense In Cost of Living. rs Now
Il Bent Time for Dcflntfon--IfvfnE
Co"tr Arc san High. Though.
ny wnI,cr II. nro~n.

By Walter u. brown.
Written FOR the United Ncws.l
NE" YORK. July 22.--Only tho
most confirmed optiinist would deny
tina, there nre grnve possibilities In
THO labor situation as II now pre-
sents Itself The administration has
allowed tho coal strike TO drift ha
FAR as u Was safe to DO 70. and has
now determined upon 'rm policy 10
force tho mining OF coal. Perhaps
the strike Of tho railway shopmen
prccipitatcd this decision. when &
va. realized That the situation might
easily get out OF hand II tho rail-
way strike should spread 10 other
branches of the transportation In
dnstry. tho combination Of two Indus
tries would be serious menace TO
the general welfare
Both strikes are a!nnd at the main
'enanco Of war wages In peace times.
II tho strikers win {. means virtual
" permanent Increase In the cost OF
hving. for the only way wages could
ever bo reduced in tho future would
IN as n result OF protracted period
~ Industrial and commercial dcpres-
sion. whether tho increase In the
cost or living resulting from such
increased d!sproport!onate wage
'caies would Initiate tho depression
cannot DO decided At this tine. but
Of ono fact there can nover be any
doubt. and that 10 that tho laws o.
economics when violated must be
compensated, and whether II IN IN the
form OF unsmplo yrnent or less mar
bHtS FOR farm products or for manu-
featured articles or whit not, the
economic balance would have TO be
restored regardless of who might
tuneT Those who are studying
these conditions from tho economic
standpoint realize this The admin
.stTation realizes Il. and is therefore
bending It's efforts to curing tho
trouble in is incipiency
Not serionnly Regarded In Street.
WALL Street has not see.ncd d!s-
posed TO rsBnrd tho labor difficulties
az serious factors from tho Trading
standpoint. There arc two reasons
for this Ono IL tho speculative tn
nency TO eaHe tho buying aldo when
conditions arc a. ,heir worst on tho
theory here Is only ono way for the
situation To tnrn- TOR the better. and
mo othar Is that tho choapness @.
money is 20 strong factor that II
oVeTShadows all others. On tho
question OF money. Wall Street hns
been anItoun for tho Federal reserve
70 announce further reduction In
'he redisoount rata, not 30 much be-
cause II Is actually needed. as be-
"auso OF Tho moral cfroct In forcing
.u.ther reductions IN ,no upen mar
kee rate Tor money. Wan Street al
ways wants cheap money, and tho
cheaper tho better
It is admitted that conditions have
oeen favorable for some time to n
reduction In tho rediscount rata bur
mo banking authorities have bean
reiuctant To mako reduction for
year it would lead to another period
OF imitation. This might be possible
80 IA! AZ stocks arc concerned, bu.
IS hhroiy likely TO lead 10 indus
lrial inhht!on such as that imnedt.
ate!y following the war For this
10 Do accomplished we would mead
our foreign mRrketa and these can-
NOT De materially Increased untn
european affairs assume n hettsr
aspect Nevertheless. n period OF In.
nation In stocks could lead To CON
hosraole recklessness In general er-
pandituro. and tho Inevitable rrsc-
ton would bring about a s.oo,ta.v
depression that could ven he avoid,
90. To thiH extont the attitude q.
the banking officials hao been ,ustl-
ned but not sven their position can
moro fhan temporarily check the
supply OF fundo available TOR et,,er
STOCK market or commercial uses. n
tunos are plentiful, money rates VIII
so down, as they are doing now
mo rediecount rate, as tho writer
mas previously pointed out, is merely
- Paece or reserve machinery TO be
nsen when reserves are called for
'hae Is. when the supply of floating
capital is absorbed either by extra.
ordinary demands or the activity ~
business. Such n situation
does not exist mt tho prescrt ,frna
'hn"s'ry has absorbed all that 1,
IAN ior the present. in view of labor
ahn political conditions. Our gold
ress!Nes are SO large that tho nos.
eloi'ities Of credit have hardly hc.n
to"chrn' and 1t il well that tbev
our huge supply Of gold has ho.
come IN many respects a mepace In
me sense that 10 Is potentiallv .
source of tremendous credit Axn.
SION. That II has not become
TACT mas been because there has roo,
no need o. tho credit The fa.r -
.hdt II there should be a runow,v
STOCK market for example. with ~
"hoie country speculatinp ~ g.,
petus to general business Thai 49,,
follow could easily set tho 49,,
credit machinery going again LIZ
a momentum that would he |'.n
stop. As n matter Of fact So 10
est safeguard will he tho ,
OK Europe which VIII make possih,o
the use OF our immense resonrrns
Inmate business expansion.