The New York herald., 1922-11-06
Immigration Policy and Tariff
Are Seen as Danger Signs on
Road to Prosperity.
INITIATION TREND Is SEEN
Leaders Wonder Whether I'm
prOvement in Business Is
Real and Lasting.

NHS PihCipdI question which has de.
Veloped lately in connection with the
steady Improvement and expansion ir
Business and industry is this: Is the i'm.
provement significant OF real, lastins
prosperity. or is it but the forerunner O,
new period of initiation? The gradua
widening OF the limits OF business 1.
plain TO be seen but it's meaning is some
thing TO which leaders in finance anc
industry are now giving thei, full at
tention. In the last week much ha.
been said and much has been writer
concerning this problem, but SO far +
remains unsolved.
The trend of commodity prices at thi.
time easily may be regarded as disturb.
ing not so much because OF the increase
as an abstract proposition but because
OF the tendency OF other costs to follow
II appears for the moment at least tina,
the higher prices which now seem In.
evitable do not portend greater proper.
tionate profits to industry and trade bu,
are likely to be the same part Of the
same cycle which was so widely dis.
cussed and condemned not many month.
back. II the assertions OF the biggest
men in industry are to be taken at thei,
face value then one of the principa
causes of the new and dangerous situa
ton in the United States is the immigra
tion policy.
immigration Causes Alarm.
The immigration regulations as the,
now stand are causing grave concern I,
those who direct the policies Of the big
gest industries Of the nation. Z. II
Gary, head of the United States Stee
Corporation. and Charles M. Schwab
chairman of the Bethlehem Steel Cor
| in no uncertain terms. Judge Gary rec
ognized the element Of danger in the
situation many weeks ago, when he an.
Eounced a general wage increase for the
great corporation of which he is head
Independent steel producers were quick
to follow the lead Of the biggest inter
est. and the ball was set in motion.
Directly thereafter steel prices began
10 rise and, with them, the indices OF
costs throughout the nation. The dan
ger of this tendency was recognized by
the United States Railway Labor Board
in its decision on the Giving wage
problem few days ago. That body
which has thoroughly studied the labor
problem in this country. predicted tha,
such a policy would wreck every rail
road in the United States" and that. II
it we're extended TO other industries
would carry them into communistit
ruin"
Aside from the problem Of labor. the
new tendency upward challenges the
interest In respect Of foreign trade an:
OF credit. How long the United State.
can enjoy real prosperity without beint
able to sell In all the markets Of tn,
world is a worrisome problem to bank
crs. In fact, one banker declared las
week that. II the foreign trade of tn,
as in recent months. the limit of pros
perity which reasonably could be an
ticipated here would be about ST.
months. This may or may not be al
exaggeration, but, nevertheless. It fur
nishes food for very serious thought
II other nations are unable. because o
high tariff wall or for any other rea
son, to dispose of their manufacture
here. they certainly cannot be expecte,
to absorb what surplus we have TO OF
fer.
The credit situation Is another thin
that is attracting widespread attention
1t cannot be said that credit condition
in the United States are tight, for the
are not. The reserves of the Fedora
Reserve Bank are standing just at thi
minute at a colossal figure. But tn
question of tight or easy money mar
ket is comparative, and what might a
one time and under certain condition
be regarded as a stringent credit position
would look under other circumstance
more or less elastic. The point is mad
at this time that while money condition
cannot be regarded as tight nevertheless
they are tightening. and leading banker
who keep their fingers on the pulse o
the world feel reasonably sure that tn
easier money prevailing early this yea
will not be seen again for many month:
signs of Tighter Money.
The continued expansion OF loans, a
reflected in bank statements. the de
| mands OF business and industry, tn
trend of the bond market. &C.. all poin
In the same general direction. Tho Id
uidation OF frozen credits, which prove
so disauleting a year or so ago. ellmln
ated very bad sore in the general situ
4 alton. Moreover, the enormous accumu
lation OF foreign gold in the Golfers o
the United states have formed the basi
for a credit structure such as has prob
ably never been seen before. But withal
bankers are virtually unanimous In thei
conclusion that IL there Is no reason 70
nor prospect Of an immediate upwa r,
turn In the value OF money. there IL ais
| no room for the BELIEF that lower rate
4 than chose now obtaining will prevail
for long time.
Movements in the financial market
last week were without particular Gig
/ nificance. The stock market move
downward In the early part OF the weel
with Some violent recessions In man.
ieatiea This was tho correction ~ M