New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-20

the enormous deferment Of c0nstruc-
tion during the last few years.; wages
and prices are gradually working into
state of equilibrium, albeit the proc
ess IS somewhat painful: the unen-
pioyment problem already has ceased
to be acute; credit conditions are
highly favorable-there being a suffi-
/. Gent supply to finance enormous ex-
pansion of business and speculation
and, finally, confidence, SO notably lack
ing IN the last two years, is being rap
idly restored
Commodity prices are on a perma-
nentiy higher ievel--at least are not
likely to recede 20 the pre-war level
for some years-but this is not in
herently evil. So far as business is
concerned, it matters little whether
prices are high or low. It is only the
prospect Of lower or of still higherI
Prices that matters, now that wages
have for the most part been adjusted
TO the new level.
Moreover, so far as the railroads
are concerned, there has been a new
and highly favorable deal" For years
before the war-and during the war
period, for that matter-inauence
were at work which created sentiment
That was distinctly adverse TO the pros
>. g. l.
deed, strong indications that this SEN
timent would be fostered to q point
which would throw the transportation
system into government ownership.
But the notable ineffieiency of goYern-
ment operation during the war brought
about complete revulsion of feeling
in this respect
There is no longer any substantial
sentiment for government ownership,
and there is instead widespread con-
vlction that everything in reason
should be done TO give the roads a
square deal under private management.
Our government is. in fact. definitely
committed to treating the carriers
fairly They no longer have to worry
over The rate problem, for example, be-
cause the Interstate Commerce Com
mission is legally obliged to fig rates
that will yield a fair return on prom
erty value. Once wages have stabilized
and the carriers labor problems are
no more acute now, than they have
been in similar crises at any time dur,
ing the last generation-the rates VIII
find their proper level, too
We may then assume that with ap-
proximate normal conditions estab-
lished, and the prospect is for their
early establishment, the influences
which have governed the movements of
railroad common stock prices in the
past will govern them also in the fu-
ture.
But there are other factors in the
situation which brighten the prospect
for holders of railway common stocks,
but which can be only briefly outlined
here.
have stated that prices are or
permanently higher level. but this
statement may reasonably be made
more emphatic so far as the next two
or three years are concerned Our
huge gold supply and large circulating
medium, the influence of European in
/ fation which we cannot wholly escape.
together with such artificial stimulants
as the prospective high tariffs-aIl
foresbadow advancing commodity
prices for the reasonably near future,
This will further cheaper the dollar.
but experience shows that it will also
| increase the marin of industrial profit
increased industrial profit should
normally mean increased turnover of
goods and consequent increased ton
mage for the railways. High commodity
prices also mean relatively larger
equities of common shares In total
property values.