Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-01

failed increased and, more significant
the average amount Of their resources
was measurably greater than 1t had
been. This situation will tend to bring
about more consultations and stirnu.
late the trend toward branch banking.
The immediate railroad Situation y
bound up in the recent application OF
the carriers for Is per cent increase
in freight rates. This is an emergency
measure and will alleviate. but not cure,
the ills in the transportation industry.
Associated with the railroad troubles
and likely to be reflected in the con-
troversy over the proposed rate increase
are the questions Of railroad wages. the
position of the farmer. whose products
have dropped below the cost OF pro-
duction. and the necessity for support
ing a part of the credit structure punt
on the foundation of railroad bonds
fore. of the confidence that is stirring
with respect to the proportions OF busi-
ness in the next six months is due 70
the faith that business men and bank
ers have in an increase in freight rate5
which will re-establish railroad credit,
expand railroad buying and eliminate
the possibility of railroad wage reduc.
tionS.
Comparative Charts Worthless.
In trying to find a way out OF the
present situation it is not OF n1uch
aid in this day of rapid changes m
industry and in the advancement OF
science In so many nelds. wnie also
taking into account the radical po-
litical and economic movements that
are going on over the world, to COM
pare 1881 with 1921, or 1907 or 1893.
There is no satisfaction in knowing that
we have been living recently in period
of greater industrial and economic dis.
| turbance than has previously faced the
present generation. Neither Is the
philosophy that counts on a return
of prosperity, because prosperity has
always followed every other crisis, en-
tirely commendable.
The world faces changes in the next
ive or ten years that are so different
from those with which business men
and politicians had to deal In 1921 or
In 1907 that one set Of statistics today
or q dozen different kinds Of charts
may fail entirely to forecast the fu-
| ture, If they are based on what these
| same barometers indicated at other
| times of reaction.
Outlook for Industry.
No doubt the United States will
progress in the future further along
certain lines than ever before. In other
directions it will have to recognize that
back track is beng taken by a per.
centage of industries and by transports.
ton and that profits on capital in the
future are not likely TO be so high as
they have been In the recent past. The
question Of unemployment will still be
| one. to be reckoned with, even should
business within the next two years re
turn to q normal scale, or to that Of
the average of the years 1926-192S.
For nearly q century industry has been
emphasizing production. Now 1t must
center more on consumption. It also
must ind places for those who have
the will and the need to work, even
though they may not labor SO many
hours per week as they do today.
There are tremendous economic and
social forces at work in Europe which
| will have to be recognized by the in
dustrialiSf8, bankers and statesmen Of
the United States. They cannot main
tain secluded and nationalistic point
of view If they are to succeed.
! :. 1t Is quite probable, also, that there
will have to be great changes In asri-
cultural methods and wide variations
! from present crop schedules In differ
ent areas Restricted immigration and
q declining birth rate have a very close
relation to industrial production which
has been geared up decade by. decade
to accommodate the population that
was showing pronounced increases via
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