Full text of Commercial and Financial Chronicle : February 15, 1919, Vol. 108, No. 2799
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The Bank & Quotation Section Railway Earnings Section VOL. 108 ,financial iirotude INCLUDING Railway & Industrial Section Bankers' Convention Section 1919 SATURDAY, FEBRUARY 15 Electric Railway Section State and City Section NO. 2799 Week ending February 8. Whiz Thr PUBLISHED WEEKLY. ance Subscription-Payable in Adv Clearings at1919. I 1918. Inc. or Dec. 1917. 1916. $ 3 449,094,246 273,688,309 488,025,314 246,986,515 +14.7 29,561,650 $10 00 Terms of Chicago 37,895,136 0,238 +47. 36,53 4,441 53,94 33,903,657 6 00 Cincinnati 53,567,748 7 +28. 0,291 For One Year 63,10 81,209,258 26,364,729 00 land 13 8,745 Cleve 48,79 7 hs +80. Mont 39,283,794 ge) For Six posta 0,000 uding 71,00 (incl 20,775,111 on 750 it 6,991 Detro 23,55 European Subscription six months (including postage) 21,476,528 +46.5 31,463,649 8,571,626 22 14M. Milwaukee 6,000 10,99 1 -10. 4,000 European Subscripti in London (including postage) 12,25 1,000 11,91 7,921,700 is 118. ,000 on 21 napol 9,422 ripti India 0 Subsc postage) ,600 +14. Annual uding 9,892 on (incl 1,600 Loud 11,28 in on 7,049,684 60 ripti $11 9,855,310 Columbus 8,559,368 +14.8 Six Months Subsc 9,827,580 3,900,000 on (including postage) o ,000 ripti Toled 4,900 Subsc 0 +16. dian Cana 4,743,587 nts,000 leme 5,500 Supp g 2,941,936 owin foll ,662 des a 4,490 inclu Peori Subscription 4,23i,075 -1.0 4,192,328 3,149,511 WAY AND INDUSTRIAL (twicey)yearly) Grand Rapids_ _ _ 3,773,404 RAIL 8 ) +30. thly (mon ,980 N 3,152 ATIO ,464 4,124 1,523,548 ,297 BANK AND QUOTINGS(monthly) TRIC RAILWAY (tw1C0 yearl 2,691 Dayton ELEC 3 +26. 2,674,388 3,490,910 1,478,267 RAILWAY EARN (semi-annually) BANKERS' CONYENTIoN (yearly) ,493 Evansville 1,737 1,972,389 -4.2 1,890,825 1,034,812 STATE AND CITY 1,831,547 Springfield, Iii. _ 7 +26. ,736 1,066 ,652 ce 1,351 Spa h __ 1,753,088 Inc e__ Per ,743 Wayn ing3,162 Fort rtis Adve +0.6 3,062,936 Terms of ,865 3,081 _ _ _ 2,555,000 _ wn ) gsto ,000 e 4,690 inch space (14 agat lines ) Youn 0 6,588,000 +9.3 0( 42 L 7,199,000 1,036,787 ,058 Transient matter per n (8 times) 1,360 Akro .2 +148 Two Months ,161 1,697 00 29 4,212,123 899,795 Rmineess? 1,309,375 Lexington iviisths T uval 3Lc 1,650,332 +18.5 00 ,872 50 1,955 848,968 18 s ord 942,4 Standing Business Card 1,398,460 +14.5 87 00 Rockf 1,601,749 570,886 75 873,8 Quincy -0.3 Twelve Months(52 times) ,316 1,388 ,661 1,383,874 _ _ 2,227 n__ ,032 ingto 2,268 . Bloom 7396 tic 8 ,184 -10. phone Majes 2,675 t, Tele Stree ,431 Salle 2,386 La 664,849 h Sout 829,458 Canton C. CHICAGO OFFICE-39 1,020,480 +5.6 1,077,290 755,000 Smith,1 Drapers' Gardens, E. 84 00 ur 800,0 ards Decat 1 CE-Edw +10. OFFI 07 919,1 LONDON 1,011,771 779,263 888,870 South Bend PANY, Publishers, 821,299 +26.2 1,036,558 849,276 WILLIAM H. DANA COMr Stet., New York, 1,073,636 Springfield, 0... 765,079 +45.1 1,110,244 563,772 37 Front. Pine and Depeyste 727,8 Lansing_ 0 +38. 834,550 1,151,171 231,295 359,138 B. DANA COMPANY. Mansfield 452,321 +12.4 508,259 1,054,709 day morning by WILLIAM Dana, Vice-President and Jacksonville, Ill_ 00 600,0 1 +11. Published every Satur 00 G. d 540,0 86 urer; Arnol 600,000 572,0 and Treas dent 67 Presi lle 683,1 Jr., Danvi rt Jacob Seibe 700,000 +54.4 1,080,630 463,073 both, Office of the Company. Lima 1,000,000 Secretary. Addresses of 912,132 +92.2 1,753,396 243,661 12 313,0 Owensboro -8.6 437,565 400,000 49,345 S. 76,305 Ann Arbor SE RETURN 80,000 +2.9 82,325 (71:EillUNG HOU ates that the total bank Adrian up by telegraph, &c., indic 03,054 ending to-day 437,8 week 4 the 13,60 for s 684,6 3 State The following table, made d +22. 9 662,970,417 ing houses of the Unite week and $5,180,000,488 Tot.N1ld.West 810,815,47 clearings of all the clear against 86,839,125,198 last 49,265,315 7,471 72,68 have been 85,937,013,714. 9 +30. 8,715 87,24 1 last year. 19,650,000 29,079,000 San Francisco__ _ 119,413,54 the corresponding week 27,272,000 +21.8 33,227,000 9,362,566 Per 16,213,759 Los Angeles 32,758,414 -5.4 30,991,572 8,224,436 raph. Teleg 8,407 le by 12,65 Seatt Cent. 5 turns +40. ---Re 1918, Clearings 16,995,417 1919. 4,601 23,88 8,489,847 15. 1,237 ary and 11,44 Portl Week ending Febru 10,816,283 +2:3.9 3,026,312 13,400,000 8 Salt Lake City 4,932,640 +17. 7 ,855 +28. 8,784 ,284 $2,12 6,489 ,928 8,352,280 $2,507,135 1,514,598 ,255 ane 2,320 +6.7 7 Spok 2 44,45 356,0 ,759 -12. 3,994 ,862 380,018,255 New York 3,507 3,027,498 5,182,379 236,514,330 +12.9 Tacoma 5,300,456 +51.1 267,018,983 Chicago 8,010,525 1,764,185 ,085 3 nd +11. 2,59( 9 Oakla 50,47 5 207,8 +15. 9 ia 3,654,694 Philadelph 231,404,34 4,219,901 2,014,256 -3.7 Sacramento 2,351,513 159,794,278 2,222,124 -4.1 153,883,947 ,251 Boston 2,130 1,034,379 +3.5 San Diego 1,979,435 121,286,953 2,335,121 +18.2 125,553,288 Kansas City 2,759,249 775,880 1,412,851 78,647,229 +33.4 Fresno 1,137,076 +9.7 .105,000,000 ,340 St. Louis 1,236 1,092,745 ,482 6 +76. 1,669 ena Pasad -2.6 49,721,486 ,306 1,922 87,818,897 ,014 San Francisco 1,873 514,610 -1-81.9 Stockton 765,080 32,986,322 986,909 +13.1 .60,000,000 Pittsburgh 260,000 1,115,894 506,809 30,125,724 +101.3 San Jose 677,011 +14.5 Detroit 60,656,097 00 775,0 249,829 00 3 ma +20. 450,0 Yaki 46,660,965 Baltimore 410,000 +57.8 56,135,892 646,971 451,414 692,360 7 Reno +35. ns 20 Orlea 968.6 New 1,314,542 h 0 Beac +17. 17,870 ,078 Long 110,7 8,417 2 166,937,763 +25. $4,034,625,636 $3,44 9 89,24 6 9 205,1 58,54 +11. 256,8 715,004,721 Total Pacific Eleven cities, 5 days 800,000,469 3,282 81,95 days 5 3 , 56,47 cities 119,9 +0.6 Other +16.1 Kansas City__ _ _ 180,658.102 179,605,155 +14. 20,149,720 23,266,204 4 $4,834,626,105 $4,163,421,799 28,884,497 +8.5 Minneapolis _ _ _ _ 33,048,090 18,496,559 5,377 1,016,578,689 29,96 9 Total all cities, 5 days 1,102,417,609 +12. 46,856,725 52,922,158 10,078,106 a 10,850,799 All cities, 1 clay 12,864,801 +18.4 -4-14 11 Omah 4)38 8,172,331 15,225,507 13,660,079 St. Paul $5.937.043.714 85.180 000 18,547,157 -2.8 18,029,403 8,715,469 1,708 rrntfil .11 elites for week 13,60 7 Denver 16,388,632 +18. 1,674 19,46 4,769,360 ,727 h 7,558 above will be given next Saturday. St. Josep 8,754,907 +11.4 * Partly estimated. 9,748,376 4,305,055 ,017 es the week covered by the s for Moin 4,623 house s ing 4 Des clear detail the by +28. up full ,237 7,246 The ings being made ,636 clear 9,302 3,642,771 y, to-da ,784 them in City sh to 4,455 be has Sioux 4,082,455 +10.6 We cannot furni day, and hence In the above the last day of the week ,715 8,402 4,540,870 5,725,664 Duluth 7,835,560 +39.6 at noon on Satur 10,306,550 2,642,819 we go to press Friday nithg.: as ,859 3,248 ta ated, Wichi estim +4.3 4,331,428 8 show all cases Feb. g ,665 endin 4,516 1,699,240 week the for ,273 es 2,491 Lincoln Detailed figur 3,005,772 +39.1 644,937 4,181,585 867,744 2 Topeka +13. 91 735,1 832,393 1,278,323 ,904 Week ending February 8. 1,819 0 Colorado Springs ,237 +22. 1,871 ,010 2,283 388,385 _ s__ 537,877 Cedar Rapid 633,734 +14.7 726,671 1,456,553 Clearings atInc. or 1,236,524 Pueblo 1,762,590 +32.2 1910. ,964 649,047 2,329 1917. Dec. 35 601,9 1918. Fargo 1919. 727,224 -4.5 694,153 2,031,950 2,450,731 Fremont 2,287,000 -30.0 932,403 1,600,000 ,698 1,555 loo 3 Water +50. 2,148,532 3,228,978 441,137 2 3,972,655,572 2,177,993,921 782,955 3,890,795,644 3,059,363,083 +27.4 335,439,330 195,426,314 Ifelena 943,709 +20.8 1,140,401 279,843 Now York 09 5 +27. 445,6 11,07 ngs 1 298,8 -7.3 Billi 39,19 380,7 94 _ 485,2 00 46,067,459 2,130 450,0 702,709 72,91 Philadelphia ___ .5 35 +143 531,2 5,479 ngs 2 4 58,04 Hasti 122,828,56 75 +49. 5,344 859,2 41,52 ,318 4,862 1,282 42,99 Pittsburgh 7 38,056,509 +93. 6 177,970,866 73,719,135 12,579,855 Aberdeen 16,334,005 07,112 +8.6 250,234,17 Baltimore 350,4 9 71,34 330,3 20,291,763 -1.1 7,666 st_ 20,07 Tot.oth.We 5,149,551 4,922,263 Buffalo 4,827,155 +18.6 86,690,329 5,723,219 8,748,076 7 121,779,713 10,032,046 Albany 11,829,577 +28.0 23,414,447 145,950,117 123,953,954 +17. 15,140,057 37,064,588 4,168,517 St. Louis +12.8 6,858,186 5 5,775 Washington +48. 48,83 ,424 0,184 9,867 21,726,299 ,206 55,09 9,183 21,371,477 2,933,137 New Orleans_ _ _ _ 3,607,968 Rochester 19,891,310 +3.9 3,502,211 +25.6 4,385 9,956,484 20,67 ,601 4,400 0,000 ,72:3 12,50 ville 2,552 3 Louis ,222 3,911 0,000 +11. 14,00 Scranton 3,503,425 -0.1 0,934 3,825,246 15,58 ,000 ,234 3,500 5,557 1,816,996 Houston 2,206,886 5,500,000 -19.8 Syracuse 2,052,549 -2.6 14,945,512 4,403,790 2,000,000 2,725 ,183 22,52 ston 3 2,021 +64. Galve ,239 3,405 2,516 ing 32,66 Read 2,693,229 +8.8 7,277 7,836 17,12 53,67 ,081 2,929 5,933 21,34 ,031 9 mond 1,626 +39. Rich 1,843,312 37,564,857 Wilmington 1,889,235 +16.6 7,439,262 52,573,381 2,203,109 10,441,978 1,922,409 Atlanta 3,077,241 Wilkes-Barre.-13,011,872 +35.0 3,116,049 +15.0 8,110,539 17,564,646 3,583,020 4,014 11,84 ,187 his 3,841 +1.3 Memp ,261 1,950 5 14,746,089 Wheeling 2,734,093 -13. 7,326,927 14,934,345 2,366,526 8,783,407 734,761 Fort Worth 979,870 11,927,196 +23.5 Trenton 969,800 +23.4 5,721,729 14,734,946 1,190,303 4,372,660 1,290,250 Nashville 1,847,283 6,298,969 +0.9 York 1,637,227 +36.1 4,324,921 6,358,539 2,228,664 ,196 65 5,178 565,0 nnah Sava 70 +9.7 647,6 7 7,820,505 764,673 +16. Erie 2,650,820 8,581,128 892,479 2,805,713 8 50,900 Norfolk +221.5 935,800 0 ,499 +17. 3,467 00 Greensburg 794,4 1,073,528 7,997 00 11,14 929,7 1,279,005 1,163,691 Birmingham 1,174,9:36 1,579,859 +13.9 Binghamton 1,059,070 +30.3 1,949,941 1,798,672 ,515 1,340,835 77 1,947 451,0 e 9 Mobil 95 +13. 557,6 2,766,222 601,554 +32.8 Chester ,879 1,804,970 3,149 ,108 798,758 2,499 ,654 1,578 +0.2 Knoxville ,986 ,278 2,110 -8.4 3,094 ,568 Altoona ,000 2,018 1,646,350 3,100 1,850,001) 1,944,466 350,640 Charleston 510,937 2,597,773 +40.0 433,233 -23.8 Lancaster 2,792,833 2,701,470 ,165 325,000 3,257 2 ta +30. Augus ,863 ,360,741 3,835 2,515 Montclair ,727 700 ,399 2,307 ,555, 4,993 0 4,490 +29. ,387 371 3,154 Chattanooga__ ,796,758 3,525,718, 4,387,289 +23.2 3,903,271 5,405,741 Total Middle.. 4,548 4,001,006 Rock 4,497,266 +85.0 ,048 ,178 25,917 189,306,940 Littleonville 3,681 8,319 261,3 7 6 +35. ,62(3 66,80 5,755 219,9 +2.1 298,429,675 9,354,600 Jacks 8,722,198 3,732,522 9,148,700 8,901,456 Boston 1,337,416 8,705,000 +9.6 9,544,100 5,672,396 Oklahoma 2,000,000 -10.0 3,500,000 7,823,739 1,800,000 +15.5 ,000 ,623 Providence 3,200 6,499 0 n -20. Maco ,406 ,632 7,507 3,340 5,000,000 313,817 4,716,014 4,000,000 Hartford 316,338 4,014,264 +24.0 5,000,000 444,011 +12.6 3,289,415 Austin 625,962 500,000 3,408,117 New Haven 662,354 2,989,071 +20.9 697,471 +10.2 3,615,479 3,099,145 Vicksburg 768,421 2,166,965 3,391,844 5 ,917 +15. ,702 5,588 Springfield 3,031 3 on +24. Jacks ,097 3,500,259 6,841,340 2,372 ,186 921,782 ,960 8,501 2,617 ,389 +3.8 Worcester 1,386 2,600,000 2,700,000 1,944,777 +25.1 1,646,457 Tulsa 8,321,076 2,433,683 1,528,375 Portland 11,461,639 2,091,847 -14.7 1,784,131 1,258,114 Muskogee 18,198,902 +38.5 9,488 25,19 1,637,292 8 +54. Fall River ,053 1,380 s 890,543 Dalla 2,245,797 +28.1 2,136,132 2,877,420 1,091,361 4 Now Bedford__ _ 1,144,418 -10.4 8 333,359,569 252,001,26 1,025,000 807,201 Shreveport 725,593 Lowell 6,904 408,532,588 +23. 603,818 +3.3 623,980 627,869 Total Southern 5-65,73 33 357 3,715,519,207 585,6 -2.6 Holyoke 65 667,2 5,406,021,210 +26.5 6,223,731, 00 198 650,0 ,125, 6,839 or Bang Total all 6 2,251,075.785 1,537-,525.286 30,545 221,665,409 554 2,3407654,1271 +25. 621 253,693,927 +32.6 298,0 Outside N. Y_ 2,948,329, Tot. New Eng_ 3:36,516,1 News." ous llane Misce and ial merc ings see "Com Note.-For Canadian clear 602 THE CHRONICLE [VoL. 108. mat ic red uct ions in freight and passenger THE FINANCIAL SITUATION rates; . below that amount it would be used for betterments That they might not come under the imputation and extensions of the properties." One difficulty of failing to take ardeep interest in the subject, the about dividing "the earnings of the roads above fixed Railway Brotherhoods presented last week, through charges and expenses" between employees and Govcounsel, their plan for disposing of the transportation ernment, upon any rule, is just here: there would problem, and Chief Garretson of the Conductors be no surplus to be divided, and as for betterments and Trainmen told the Senate commit tee on Monday and extensions, those would be laid upon the public "why labor supports in principle the plan to turn through enforced contributions. In the face of the over the operation and profits of the properties to ghastly financial results of the firs t year of Governthe workers." This plan is gre at in its simplicity, ment operation and the fact that the roads are sublime in its assurance and pote ntially effective largely failing to earn their expens es, how can any in its results. Beginning with a purchase of the man out of Bedlam propose suc h a vacuum-coining roads. by Government, it would turn all manage- scheme as this, by which the men for whose benefit ment over to a single corporati on to be two-thirds the roads have been plundered to the verge of bankchosen by the employees, and the n the net earnings ruptcy are to have the properti es which have bewould be divided between Gov ernment and the come almost theirs in effect turned over to them in men, "each employee receiving a dividend propor- statutory form? tionate to his wages." The diff iculty of having to We ask how this can be seriousl y proposed, and await the conclusion of the phys ical valuation farce yet there is an answer. "Railr oad attorneys and is to be solved after the manner of Alexander when railroad presidents," said Mr. Gar retson with a bland he untied the Gordian knot wit h his sword, for the expression, "may smile whe n I say that I have roads are to be bought on the basi s of present market studied the railroad problem dee ply; I have, in my value of their stocks. If the owners have not lost own way." He has evidently done so, in his own all hope and still object to sell ing, they are to be way, and in no other. He and his fellows have been made to sell and at the purchase r's own price in so delightedly bound up in thei r game of turning Government bonds, whether at par or at market down the screw of successive wag e-extortions upon does not seem to be clearly stated. If some scruples the roads that they have become obli vious to everystill exist as to the honesty of this purchase, be it thing else. To them, there are no other interests noted that we are in a time of striding rough-shod to be considered and no other persons concerned. across private rights, under the plea of war emer- They do not see the complicated financial structure gency—it is, as will be perceived , "the simple plan bottomed upon railway securiti es and welfare nor that they should take who hav e the power and they the many millions (includi ng themselves) whose should keep who can." Gov ernment, we have to savings rest upon this foundatio n whi admit, has the power; shall it be denied the doing blind selfishness, have been und ch they, in their ermining. When of anything which looks good to the set that seems they strutted about in Washin gton, a little more dominant, perhaps by making the loudest clamor? than two years ago, hinting at the explosive strike The employees would now, in their turn, "take orders in their pockets, assuring over" the roads the Governmen Congress that t began by taking nothing short of submission to thei r demands could over; just another seizure foll owing upon the first. avert the calamity of a general stoppage of transChief Garretson is progressive, and he perceives portation; and boasting. of the mill ions they had put that revolutions never go bac kwards. Said he to by as an emergency fund to car ry them through the the committee: struggle, they had not vision enough to perceive "It is a brave man who, afte tha t this very fund was menace r a wor ldd, along with all wide con- oth vulsion like the present war er savings, by the rebellio , wou ld exp ect n the they threatened. tangled threads of civilization They have kept their own gre ed so closely and so they were broken. This is to be picked up where an era of turning long before their eyes that they backwards. Forces have beenot cannot see anything n let loose by this war beyond. Quite a number which must be reckoned with, of yea rs back Chief Stone go ahead doing his bit, to the and every man must of the Engineers' Brotherhood announced the propoend tha t the better sition that wag civilization for which we fou es are a first lien always and rece ght shal l be ivers' carr ied forward." cash as good as any. Are these men to blame? While it is not clear that Mr. Surely, yet not they Garretson and his alone. What hav fellows "fought," except for e all of us, the American people, more wages and fewer been doing in the last twenty years? Withou work hours, this sounds like t even some other rhetorical the excuse of a direct and immediate bonus stuff which has become fami promised liar. He is no such to ourselves, we have been indifferent to all brave man as to expect repair warnof any tangled threads, ings, and hav e allowed the regulative body and he would go on tangling and to bleed breaking them. these public instrumentalitie The plan is not much worse s. Argument, remonthan some others; it strance, entrea ty, have been in vain; we wou is worth considering along wit ld not h Mr. Bryan's idea take notice. The war was the shock which prec of saving the great trunk line ipis and letting all the tated the des cent, but that would have bee minor ones and the feeders n reached go to wrack. Were in time, wit h the process continuing. And not the situation so tragical now ly serious one might these employ ees for whose unreal though smile at the unconscious hum apparent or and the bat-eyed gain the prop erties have been brought to stupidity of such propositions this pass ; but those who make ask that the remains shall be thrown to the them are much in earnest in m. It their own way, and is a climax whi ch should not surprise us, for Mr. Garretson correctly says we have that forces have been brought it upon ourselves. We are rea let loose which must be rec ping what koned with. we have sown. "Above a certain return" the plait reads, "the What shall be done about this Government's share would be bunch of "the absorbed by auto- tangled thread s" is what we, the people, mus t now FEB. 15 1919.] THE CHRONICLE 603 4 of e aggregat the e, favorabl exhibit is particularly debts at $898,772 being little more than half that of 1918. Among brokers, agents, &c., moreover, the liabilities were only $31,420 which, while somewhat larger than in January a year ago, was but little more than one-twentieth of the amount in 1917. Trading insolvencies, on the other hand, while fewer in number, covered debts nearly double those of a year earlier, but were not heavy in either year. decide. The problem is not insoluble, but it does demand sense, firmness, honesty and other virtues which have been liberally ascribed to American character. The test is upon us, and it will show whether we are good metal or a muddle of dross. Mr. Cottrell for the Southern Traffic League tells the Senate committee that Government ownership in any form means only ruin for the South; is not this true as to all the country? The shippers in the South, he added, demand return of the roads in the shortest possible time. The right plan will A Peace Conference, without reports at frequent follow upon a sufficiently stern determination to of difficulties and differences, seemingly intervals country the from find it and an unmistakable hearing serious, would not be a peace conference at all. to that effect. The New York "Evening Post" observed editorially , Wednesdays and The commercial failures exhibit for January 1919 on Thursday: "On Mondays headed for chaos is ce Conferen is of the same gratifying character as the returns for Fridays the Peace Thursdays and s, Tuesday on but , preceding months. The number of insolvencies, in and calamity agreement complete to on g marchin is it s the Saturday as fact, was the lowest for the period as far back of kingdom the is such Of success. glorious and and October of n records go, and with the exceptio no was ce Paris Conferen November 1918 the smallest of any month in over press dispatches." The recalled, however, that is It week. this n exceptio ness the indebted but that, only Not a decade. modern histfity there in gs disclosed by the defaults is well under that of either at all similar gatherin that they did not but rows, of rumors of the final four months of 1918 and the lowest in have been d. as intimate serious as nearly be to January since 1905. The nature of the showing is prove definitely was it week this of days early the remark During to such as to lead Messrs. R. G. Dun & Co. s were so incensed that "no reflection yet appears in the failures statis- reported that the American delegate a carefully prebe to them to appeared what c readjust over economi hing far-reac tics of the varied and block the chief to ments which have inevitably followed war's ending. pared campaign in the French press were strongly they that After more than two months of diminishing business purposes of the Conference, g be moved gatherin the that g activity and yielding prices the insolvency returns in favor of proposin that the rumored was it first At maintain the highly favorable features that have out of France. but idea, this with ized sympath s long been witnessed." It is to be noted, too, that British delegate of its way by d develope nothing passed days the large failures—those for $100,000 or more— as the rumor defined well the rate, any At iation. substant back year were fewer than in January of any earlier other meeting to, but not including, -1909 and in no instance was that President Wilson favored some place had the desired effect. The storm blew over there a really heavy indebtedness involved. being made. According to Messrs. R. G. Dun & Co.'s compil- and there is no probability of any change and only first the exploded eau Premier Clemenc ation, the total of mercantile disasters in January record. public any been has there which of was only 673, against 1,178, 1,540 and 2,009, one, real bomb asserted he w, intervie an of course the in Sunday, s the with liabilitie On two and three years earlier, been won, standing at but $10,736,398, against $19,278,787, that "while I have said that the war has that there $18,283,120 and $25,863,286, respectively. In 1915, it would perhaps be more accurate to say advices, cable to g moreover,the aggregates were 2,845 and $49,640,575, is a lull in the storm." Accordin a caused Premier the of the Rumely Co. insolvency then accounting for this and other statements Careful circles. ce Conferen virtually one-third of the liabilities. The exhibit great furore in Peace w scarcely in the manufacturing division was very much better reading, however, of the Premier's intervie that were ns deductio alarming the warrant to than a year ago, and to a greater or lesser extent seemed ts of the sentimen the voiced he ly Apparent of s made. most lines shared in the reductions in liabilitie amply be must they that feel who people, French 1918. from nearly 43/ million dollars in that division y reGerman of ty possibili the against ded safeguar fewer y decidedl In the trading group defaults were the of zation demobili the after war the opening of indebted the year, and volume previous than in the of al withdraw ness they represented was the smallest for January French and English forces, and the in something like a quarter of a century. Among the American troops. A week ago to-day the hope and belief was exbrokers, agents, &c., an important decrease in the number of insolvents is to be recorded, and the pressed that the League of Nations plan, or constiindebtedness totaled little more than half that of last tution, would be in shape to present at a full meeting end of the week. year. Of the 18 large failures reported only 3 for of the Peace Conference before the appear that this to began it and by flitted days The the trading class. in were $386,000 would be Wilson t The failures compilation for the Dominion of could not be, and that Presiden some until home for Canada is in line with that of the United States in compelled to defer his sailing which honor, the enjoy to were he if making a very satisfactory showing. Number of day next week the document to disasters and volume of indebtedness are both below had been voted to him, of reading however, seem. y, Thursda Late ce. Conferen back the those of any preceding January for many years he referred in which to miracles those of one s of ingly liabilitie and only in trading lines does the total on from the delegati a day the in earlier g receivin with d furnish evidence of any stress, as compare was perNations, of Society a for ion Associat French numin ial January failures commerc 1918. In all, many for filling bered but 80, involving $1,887,991, against 105 for formed. After much backing and of 26 g consistin plan, $2,287,510 a year earlier, 144 for $2,357,694 in1917, weeks, the final draft of the of the by League whole a and 200 for $3,038,805 in 1916. The manufacturing articles, was adopted as 604 THE CHRONICLE [VoL. 108. Nations Commission. President Wilson read the severe if possible. Marshall Foch was to leave for draft at a plenary meeting of the Peace Conference Treves on Thursday for the armistice conference. yesterday afternoon, left for Brest in the evening, The French delegates to the Peace Conference expecting to sail for the United States to-day. have not permitted the question of the indemnity The following are the chief features of the state- which they feel they should receive from Germany ment: There are to be not more than three delegates to be lost sight of in the multitude of other troublefrom each nation; an executive council and one vote some problems presented for consideration. The for each member Power. Council to meet at least simple facts are that they and the people they reponce a year. President Wilson to issue the call for resent feel more keenly than perhaps any one except the first Peace League meeting Only self-governing the Belgians can realize the losses of property, men countries are to be admitted to membership. Arma- and treasure that they have suffered at the hands ments are to be reduced. There is to be a frank of the Germans. Premier Clemenceau in his famous interchange of military information. Provision is interview of last Sunday spoke at length upon the made for a permanent military and naval commis- shortage of France's wealth because of the war and sion. Territorial guarantees are insured. There the fact that, while her agricultural territory and can be no war declarations until three months after industries in the northern part of the country had arbitration, before a permanent court. A trade been despoiled, those of Germany had not been boycott is to be the chief weapon in enforcing the touched. "Industrially and commercially," he deorders of the League, and provision is made for a clared, "as between France and Prussia, for the prespermanent labor bureau. ent the victory is with the Hun." Among the numerous developments earlier in the week was the adoption by the Supreme War Seemingly the Peace Conference acted with undue Council of a resolution, drawn by President Wilson, haste a little more than a week ago with respect intended to put the economic side of the armistice to the announcement of the Lenine Government in situation on a parity with the military side. On Russia that it was ready to send representatives to Monday announcement was made that not only the Princes' Islands to discuss peace terms with the would there be a new council to be known as the Entente, to pay Russia's debts, &c. As we anSupreme Economic Council, clothed with full power nounced in last week's issue, President Wilson at in dealing with economic questions, but also that on once appointed George D. Herron and William Allen the armistice commission there would be two civilian White as the American members of the commissio n representatives of each Government, answerable not to go to that gathering. Early this week it was to Marshal Foch, but to the Economic Council. announced that the latter had received his instrucThomas W. Lamont, Albert Straus, Bernard M. tions but that a new date for the meeting had not Baruch, Herbert Hoover and Vance McCormick are been fixed. Severe critics in this country of Presithe Americans of that body. dent Wilson's selection of Professor Herron for this The question of terms to be imposed upon Ger- important mission are wondering if special signifimany when the extended armistice expires next cance should be given to the fact that nothing has Monday, the 17th, came up for discussion through- been said about instructions having been given to out the week just closing. The creation of the Sup- him. If the President listens to these critics and reme Economic Council was for the evident purpose does not pursue his usual practice of standing by his of curbing Marshal Foch's power in arranging appointees regardless of criticism, however ruthless, another extension, not because of any desire to em- Professor Herron will never have the privilege of barrass him personally, but because of a well defined putting his feet on Princes' Islands. President Butbelief on the part of the American and British ler of Columbia University, the Presbyter ian Union delegates that the best results will be obtained in of Newark, N. J., authorities and citizens of Ripon, Germany, from the point of view of the Entente, Wis., where Professor Herron found and married his if greater prominence is given to the economic side. lawful wife, have cabled their protests to the PresiIt appeared that if Marshal Foch could have his dent against his appointment, in no uncertain terms. way, he would make the terms for Germany more In addition to the Bolshevik Government, word severe than ever. It is said that he would occupy came on Wednesday that in all probability the Essen, take over more artillery and compel Germany Ukraine, the Crimea and General to comply with all the terms of the original armistice, Ekaterinodar will also be represent Denikine at ed. The numwhich she is reported to have evaded at least in part. ber was further increased yesterday by the announceYesterday, it was definitely announced in Paris ment that the Esthonian and Lettish Governments that he would not be able to carry out these ideas, would also send delegates. and that the new armistice plan that had been agreed Reverting to the reported willingness of the Soviet upon is so definite in form as to constitute virtually Government to acknowledge the debts of Russia a basis for a preliminary peace treaty. It is stated to creditors of Entente nationalitiy, it is interesting that it contemplates the conclusion before long of and instructive to glance for a moment at a recent what may be termed a stable armistice with Germany, bulletin of the Russian Chamber of Commerce at which will mean a reduction in its military forces to Paris, which gives some of the largest items of Rus20 or 25 divisions. Although nothing official was made sia's foreign obligations. For instance, it is recalled public as to the terms, it was definitely reported that that England provided £568,000, 000 with which the new armistice plan further provides that if Russia financed her immediat e needs up to the Germany conforms to its stipulations she will be time that the United States entered the war. France permitted to get materials needed for the resumption loaned Russia 3,490,000,000 francs, two-fifths of be permitted to get materials needed for the resump- which was to meet foreign coupons and the rest for of normal industrial life. On the other hand, if the purchase of materials. Furthermo re, the French she evades the terms, the present blockade condi- Government guaranteed the Bank of France against tions will not only be continued, but be made more possible loss resulting from the advancing of 500,- FEB. 15 1919.] THE CHRONICLE 000,000 francs to Russia, without interest, payable in one year after the cessation of hostilities. In the autumn of 1914 Russia sent £10,000,000 to London and undertook to send up to £40,000,000 gold to the United States. Actually it is believed that the amount sent forward was about £20,000,000 gold, which was regarded as an advance to the Bank of England, which is obligated to restore the gold after the war. It is worth noting that the foregoing figures do not include the advances of the United States to Russia nor her large debt before the war began. 605 I earnestly appeal to you to do all that in you lies to foster a happier and more harmonious spirit in our national and industrial life." Urging prompt action by Parliament on the "large number of measures affecting the social and economic well-being of the nation," the King announced that the House of Commons would be asked to consider several measures intended to expedite its deliberations. Furthermore, approval will be asked of bills providing for two new Ministries—one to deal with health conditions, "with a view to the establishment throughout the land of a scientific and enlightened health organization to combat diePolitically, this was a busy and eventful week in ease and conserve the vigor of the race"—and the at least three European capitals other than Paris. other for a Ministry of Ways and Communications, Just when President Wilson was doing all in his "with a view to increasing and developing the inpower to speed up the deliberations of the various dustries and agricultural resources of the country councils and committees which now have the work by improved conditions of transport." of the Peace Conference directly in hand, in order The King emphasized the pleasure he had experithat he might hurry back to the United States to enced in receiving President Wilson in England and be present at the closing days of Congress, Premier observed that "the enthusiastic welcome accorded Lloyd George of England and Premier Orlando of him is proof of the good-will which all sections of Italy were compelled to tear themselves away, much my people feel toward the great Republic of the West, as they felt that their presence there was needed, and an earnest of the increasing understanding with to attend the opening sessions of Parliament in their which I trust they will act together in the future." respective countries. At the same time the faction That he favored the action of the Peace Conferthat is endeavoring to set up a Government in Ger- ence in voting at the outset to have a League of Namany was meeting in quaint old Weimar, which it tions, King George made clear when he said: "I rehas designated as the capital of Germany, to adopt joice particularly that the Powers assembled n the a constitution for the State and to elect a President Conference have agreed to accept the principle of thereof. a League of Nations, for it is by progress along that The new British Parliament convened on Tues- road that I see the only hope of saving mankind from day. Inasmuch •as this is the first time it has a recurrence of the scourge of war." The King come together since the dissolution of the former left no doubt in the minds of his hearers as to the Parliament, soon after the collapse of the German necessity, in his judgment, of maintaining an army, armies in the field, it will always be known as the even after the signing of the peace agreement. On Reconstruction Parliament of this period of Eng- this point he said: "In order to reap the full fruits land's history. In his opening address King George of victory and safeguard the peace of the world, evidenced a notable grasp of the many and trouble- an adequate army must be maintained in the field, some problems with which England is confronted. and proposals which will be necessary to secure the It is well worth noting in passing that most con- forces required will be submitted to you in due spicuous among all these questions is the spread of course." Socialism. That many of these problems were made more knotty by the war, and that some were largely Lloyd George made two addresses this week in the a direct outgrowth of that titanic struggle, is gen- House of Commons. The first was at the opening erally admitted. That many of them antedated session on Tuesday, and the second the following that event by some years was made clear by the day. In neither instance did he make any attempt King, and is as fully realized by all close students at what is commonly called oratory. In a simple, of conditions in England. even familiar, but nevertheless forcible, manner, he In view of the recent labor demonstrations in discussed in a general way the results thus far atLondon, on the Clyde, in Glasgow, and in various tained at the Peace Conference, defending the steps other less important centres, it was perfectly natural that had been taken and the measures adopted, but that the King should have asked Parliament specially of course he dealt specially with some of the most "to spare no effort in healing the causes of the existing vital matters with which the Parliament of his unrest." Outlining some of the causes of the present own country will have to deal before the deliberaattitude of the people, he said that "before the war tions of the Peace Conference shall have been conpoverty, unemployment, inadequate housing and cluded. many remediable ills existed in our land, and these Respecting the progress made at that momentous ills were aggravated by disunion." With respect to gathering, he declared that it was "equal to and ways of overcoming these conditions, the King even beyond the most sanguine expectations." hastened to assert with special emphasis, "we must He added that he "would deprecate very strongly stop at no sacrifice of interest or prejudice to stamp anything in the nature or sort of separate debates out unmerited poverty, to diminish unemployment in the parliaments of those countries upon questions and to mitigate its suffering, to provide decent which can be best discussed by representatives of homes, to improve the nation's health, and to raise those countries together." Special emphasis was the standard of well-being throughout the com- laid by the Premier on the fact that "there is munity." Further expressing his solicitude for the this difference between this conference and all other welfare of the people, their ruler said, "that the gifts conferences the world has ever seen. They practiof leisure and prosperity may be more generally cally all dealt with differences of opinion between two shared throughout the country is my ardent desire. countries. Here at this conference you are settling 606 THE CHRONICLE [VoL. 108. be found to restore peace and order in questions which involve every continent in the way would Russia. world." in ions Discussing economic and industrial condit On the whole the labor situation in England showed his Tuesday's speech, the British Premier declared ntial improvement this week. On Monday that "there is plenty of material for employment substa ncement was made that the London underif all classes act with restraint and wisely. There annou lines were running on normal schedules, the is no danger of unemployment if certain essential ground having been settled. All of the workers in the conditions are adhered to. The first of all is that strike district who had been out were instructed to confidence must be given to those who are responsible Clyde to work on Wednesday. Shipyard strikers return ded for starting the wheels of industry." He defen London district were said to be coming back in trade unionism and its leaders with characteristic in the numbers at midweek. The most disturbing vigor and alleged that the Socialist element in its large e was the agitation on the part of the Miners' efforts to bring about anarchy "is seeking to destroy featur Federation for shorter hours and increased pay. not only trade unionism but the State." ttee of its members met Government leadDealing in still more specific terms with the indus- A commi port on Wednesday and asked for a sixSouth at of ers trial situation, Lloyd George outlined the spirit day, a 30% increase in wages, and full pay fairness with which he asserted the Government hour to demobilized miners during unemployment. intends to deal with every question presented by The Government, in reply to the demands of the labor. He said: "Every attempt which is put formen for a six-hour day, reminded them of the effect ward by any body of workmen the Government are that the granting of the same would have upon the bound to examine, and they will examine, fairly general trade situation. As to increased wages, the and carefully, with a view to removing any legitimate Government signified its willingness to add a shilling grievance and to redressing any unfairness or any a day to the present war bonus. Regarding the inequality. Every demand, however, which is demand in behalf of demobilized miners, the Govpressed forward with the view, not to obtaining ernment stated that they must be considered in fair conditions, but with the ulterior motive to hold and relation to the general question of demobilization. up the community, to overthrow existing order The miners' conference took action the same day to destroy the Government, relying not upon the and announced that it would not accept the Governjustice of their claim, but upon the brute force which , ment offers. It was feared that this would result is behind it, then I say, on behalf of the Government in a great strike and that the coal shortage would be and in all solemnity, we are determined to fight we still further increased. Prussianism in the industrial world exactly as whole the fought it on the Continent of Europe with One of the most interesting announcements of the ion might of the nation." It was this last assert ry, week regarding shipping matters was that of the that has attracted the most attention in this count in further details of the shipping deal with the Governand .to which the heartiest applause was given ment involving £20,000,000. It develops that Lord the House of Commons when it was uttered. Inchcape, head of the Peninsular & Oriental Co., In Wednesday's speech "England's Great Comand Sir Owen Phillipps, Chairman of the Royal Mail moner" sounded the same sanguine note as the day Con- Steamship Co., had taken over from the Governbefore regarding the outcome of the Peace ment contracts with shipbuilders for 137 standard ference, and expressed the belief that a complete rn vessels now in process of construction. According agreement would be reached regarding the weste ary to the plan, they are to . offer the vessels to other boundary of Germany. As to the eastern bound prob- ship owners on the same terms on which they sehe was not so hopeful. In fact, it was to the he cured them from the Government. Everyone enlems presented by the Russian situation to which ugh gaged in the Atlantic shipping trade was specially devoted a considerable part of his remarks, altho ess, interested in the further reduction in rates of about primarily he had risen to reply to Rupert Guinn to 10% announced by the United States Shipping Unionist, who was disposed to press Germany who Board on Thursday. The new rates are for outthe utmost in the matter of reparation, and de bound cargoes and apply to pieces weighing up to requested more information regarding the attitu on 4,480 pounds. of Britain's delegates to the Peace Conference this and other vital questions. Gradually the British authorities are relaxing n, Contrary to the idea seeming to prevail in Londo the rules put into effect from time to time, both as Lloyd George declared that no one at the Peace in to exports and imports. For instance, on Monday Conference had proposed that the Bolsheviki h imas word was received in Washington that Britis Russia be recognized. He characterized them albe would shoes and boots can Ameri e," porters of "assassins guilty of the crimes laid to their charg they ity quant the of urth one-fo in bring to es lowed and asserted that financial assistance and suppli received in 1913, the year before the war. On antithe to hed furnis of many kinds had been t an Thursday a cable was received saying that the expor Bolshevist Governments, simply because of from al and oatme a of beans, rye flour, barley flour earnest desire to keep the rich sections of Russi the United Kingdom to neutral countries is now that out of the hands of Germany. Suggesting permitted, and that large quantities of these comRussia's problems are easy to discuss theoretically, modities are available in the United Kingdom. It but difficult to solve, the Premier declared that if is even reported from London that the war ordinance conditions in that country should seem to demand forbidding the importation of unset diamonds has intervention on the part of a foreign power, America been revoked by the Government. would never send troops, money or material, and that consequently the burden would fall upon As proof of the financial strength of the leading Great Britain and France. He entertained a strong railways of England, it may be noted that practihope that at the forthcoming Prinkipo conference a FEB. 15 1919.] THE CHRONICLE cally all of the larger companies showed increases in their dividend disbursements for 1918, although none of them was in excess of the rates prevailing before the war, except the Great Western and the Hull & Banesley. The average yield on railway shares at current prices is 7%. That some of the insurance companies are notably prosperous is shown by the declaration of a 100% bonus by the Liverpool & London & Globe Insurance Co., which is to be applied toward reducing uncalled liability. At the annual meeting of Lloyds Bank on Tuesday, Sir Richard Vassar Smith summarized Great .Britain's financial condition in a few words. He remarked that her adverse trade balance is no less than £2,000,000,000. By the time peace is formally declared, he estimated that the net debt would be about £8,000,000,000, or $40,000,000,000. From this may be deducted approximately £1,500,000,000 on loans recoverable from the Dominions and other allies. He pointed out the necessity of greater industry and of strict economy, and added that the capital that has been lost in the war can be replaced only by savings from profits on production. 607 Addressing the National Assembly yesterday the Chancellor outlined the peace program of the new German Republic as follows: Conclusion of an immediate peace; adherence to President•Wilson's program; refusal of "a peace.of violence"; restoration of the German colonies; immediate repatriation of German war prisoners; membership in the League of Nations on an equal basis; reciprocal general disarmament; abolition of secret diplomacy and creation of a democratic German army. Scheidemann has been prominent in political affairs in Germany since 1914, as the leader of the pro-war, pro-Kaiser wing of German social democracy. Born in Cassel in 1865 he enjoyed a high school education and became a printer and later a journalist. Since 1903 he has been a member of the Reichstag. Gustav Adolf Bauer, Minister of Labor, was one of the principal leaders of the German trade union movement and since 1912 has sat in the Reichstag. Otto Landsberg, Minister of National Defense and Justice, is a lawyer and since 1912 also has been a Socialist member of the Reichstag. Later in the week Dr. David re-signed the Presidency of the National Assembly to join the cabinet. He is known as an "intellectual," is a doctor of philosophy, an author, and has been a Very little in the way of industrial or financial member of the Reichstag since 1903. He has been news came out of Germany during the week. Yester- succeeded as President of the Assembly by Konday, however, it was reported that 20,000 store work- stantin Foehreneach, who, before the revolution, ers in Berlin had struck for higher wages. The at- was President of the Reichstag. tention of the people was absorbed with the delibFriedrich Ebert, Germany's new ruler, was born erations and developments of the National Assem- in Heidelberg, Baden, Feb. 4 1871, and is, therefore, bly at Weimar. A defiant and extremely radical a trifle more than 48 years of age. • His father was a note seems to have been sounded in all that was said merchant tailor, but the son learned the trade of a and done at that unique gathering. This is not harness-maker in his home town. Even then the strange. The whole movement is fathered by the Socialists were active there and Ebert early imbibed Socialist Party in Germany, and, of course, it is ex- many of their ideas. Later he came chiefly under treme in every particular. In his opening address the influence of Dr. Rued.t, who had been a teacher before the National Assembly last week Thursday, of Prince Chlodwig Hohenlohe, who subsequently Friedrich Ebert vehemently declared:"We warn our was appointed Third Chancellor. Apparently when opponents not to drive us to the utmost. Hunger he left Heidelberg Ebert was a full fledged Socialist, is preferable to disgrace and deprivation is to be pre- but was known as a "revisionist." From 1892 to ferred to dishonor." Continuing he said: "We will 1900 he served as editor of the Bremen "Buergercall on the old German spirit of Weimar. We will be zeitung." Rising rapidly in political circles, in 1912 an empire of justice and truth." The speaker w.as he was elected to the Reichstag. On Nov. 9th last interrupted frequently, and even heckled, by the he succeeded Prince Max of Baden as the first Independents, to whom he declared that their disSocialist Chancellor of the German Empire. Strangeorder showed how little the hard times through ly enough, his appointment was announced simulwhich they had passed had taught them. taneously with the resignation of the Kaiser. On Tuesday he was elected President of the State, or new German Republic, as it is now called, Not much was heard from Italy this week. by a vote of 277 out of a total of 379. Dr. Edward Premier Orlando is back in Rome preparing for the David, a majority Socialist, was chosen President opening of Parliament, probably about ten days of the Assembly by a vote of 274 to 25. For the hence. It was reported in the Italian capital on Presidency of the Republic Count von Posadowsky- Wednesday that soon after the assembling of ParWehner received 49 votes. Mathias Erzberger and liament the Premier would dissolve that body and Phillip Scheidemann each received one vote. Ad- call a general election, the first since October, 1913. journment was taken until Thursday in order to Former Premier Luzzatti came forward with a select a new cabinet. ridiculous plan for paying the war debts of the Allies Chancellor Scheidemann yesterday announced the and to furnish funds for reconstruction work. In following Cabinet: Herr Schiffer, Vice-President of short, it. calls for a world lottery. Evidently the the Cabinet and Minister of Finance; Count Brock- Italian statesman never has made a careful study dorff-Rantzau, Minister of Foreign Affairs; Hugo of the laws of the United States with respect to Preuss, Minister of the Interior; Gustav Bauer, lotteries. Estimating the population of the world Minister of Labor; Herr Wissel, Minister of Public at 1,700,000,000, he -is said to believe that at least Economy; Herr Robschmidt, Minister of Provisions; 300,000,000 would participate in the scheme. He Otto Landsberg, Minister of Justice; Herr Noske, suggests that if that number were to purchase on Minister of War and Colonies; Herr Giebert, Minister the average of ten tickets each at $20 a ticket, the of the Treasury; Herr Koest, Minister of Demobili- total proceeds would be $60,000,000,000, of which zation; Edward David, Mathias Erzberger and Herr $10,000,000 would be used for prizes, an inevitable Gottheim, Ministers without portfolio. adjunct of all lottery schemes. Needless to remark 608 THE CHRONICLE [VOL. 108. that this proposal and many others that have un- 355,868 francs last year and 5,134,734,400 francs the doubtedly been sent forward to the Peace Confer- year before; of these amounts 2,037,108,484 francs were held abroad in 1919 and 1918 and 1,945,603,286 ence, will be pigeon-holed for all time. francs in 1917. Treasury deposits, during the week 8 Feb. ended week the for gained 33,838,162 francs, while general deposits were British revenue returns 0 £33,000,00 than more by 79,590,603 francs. On the other of reduction augmented net Flow that a bills Treasury of holdings fell off 683,377 francs, bills volume silver the in hand, about brought was outstanding. Expenditures for the week were £42,- discounted were contracted 49,190,386 francs, and 733,000 (against £51,153,000 for the week ending advances reduced 4,598,762 francs. Note circulaFeb. 1), and the total outflow, including Treasury tion registered a further expansion of 139,661,915 bills repaid and other items, was £123,976,000, as francs. The total . of notes now outstanding is against £154,883,000 last week. Receipts from all 32,506,658,595 francs, and compares with 23,821,sources were £123,469,000, which compares with 175,830 francs at the corresponding date in 1918, and £155,138,000 in the week preceding. Of this total, 17,747,070,195 francs in 1917 Just prior to the revenues contributed £30,540,000, against £24,- outbreak of war in 1914, the total outstanding was 752,000 a week ago; War Savings certificates £600,- only 6,683,184,785 francs Comparison of the vari000, against £1,600,000, and other debts incurred ous items in this week's returns with the statement £2,221,000, against £2,948,000 the previous week. of last week and corresponding dates in 1918 and 1917 The income from war bonds amounted to £19,- is as follows: BANK OF FRANCE'S COMPARATIVE STATEMENT. 341,000,in comparison with £91,981,000 the previous Status as of Changes Feb. 13 1919. Feb. 14 1918. Feb. 15 1917. for Week week, but advances to the Exchequer were £27,Francs. Francs. Francs. Francs. Gold Holdings— 000,000, against £1,500,000 the week preceding. In Franco Inc. 2,525,150 3,473,637,701 3,328,247,383 3,189,131,114 No change 2,037,108,484 2,037,108,484 1,945,603,280 Sales of Treasury bills amounted to £43,552,000, Abroad 2,525,150 5,510,746,275 5,365,355,808 5,134,734,400 Inc. Total The which compare with £32,107,000 last week. 274,499,584 252,167,509 314,804,875 683,377 Dec Silver 621,032,442 1,153,745,004 1,334,854,439 £1,008,49,100,386 now Dec. is g Bills discounted total of Treasury bills outstandin Dec. 4,598,762 1,226,637,379 1,229,078,037 1,262,020,977 Advances the and ago, week a ,000 253,000, against £1,042,158 Note circulation_ _ _1120.139,661,915 32,500,658,595 23,821,175,830 17,747,070,195 33,785,164 41,918,012 87,630,088 deposits Ino. 33,838,162 Exchequer• balance aggregates £7,947,000. Last Treasury General deposits.._ _Inc. 79,590,603 2,664,301,822 2,634,425,215 2,346,462,370 week it was £8,454,000. The Imperial Bank of Germany in its statement The Bank of England continues to add to its stock for the week as of Jan. 31, again shows sensational of gold on hand, a further increase of £175,450 changes in its leading items. Chief among these having been reported this week. There was also an may be mentioned an increase of 536,224,000 marks expansion of £329,000 in total reserve, the result in bills discounted, a decline of 325,604,000 marks of a reduction in note circulation of £154,000. in other securities, while note circulation was inThe proportion of reserve to liabilities was slightly creased 254,427,000 marks and deposits 200,296,000 lowered and is now 20.40%, compared with 20.45% marks. Lesser changes were a reduction of 1,782,a week ago and 18.96% last year. There was a decline 000 marks in total coin and bullion and of 1,685,in public deposits of £2,563,000, although other 000 marks in gold. Treasury notes expanded 79,deposits increased £4,564,000 and Government 725,000 marks, although notes of other banks deSecurities were expanded £1,841,000. Loans (other creased 1,083,000 marks. There was a reduction securities) registered a contraction of £172,000. in advances of 947,000 marks and in investments of The Bank's holdings of gold now stand at £81,619,- 3,726,000 marks. Other liabilities were conqacted 117, which compares with £58,943,108 in 1918, 171,916,000 marks. The Bank reports its total £57,141,037 the year preceding and £42,527,458 in stock of gold on hand at 2,253,713,000 marks. In 1914. Reserves aggregate £30,236,000, as against the same week of a year ago it was 2,406,100,000 £31,332,308 last year and £36,140,502 in 1917. marks and in 1917 2,524,420,000 marks. Note cirThe total of loans is £83,297,000. In the same week culation has now reached the huge total of 23,547,of last' year the amount was £95,666,673 and in 587,000 marks, which compares with 11,138,940,000 1917, £44,034,194. Clearings through the London marks in 1918 and 7,858,480,000 marks the year banks for the week totaled £463,920,000, as against preceding. In the week of July 25 1914, before £563,720,000 the preceding week and £383,790,000 the commencement of hostilities, note circulation last year. Our special correspondent is not as yet was only 1,890,893,000 marks. 'able to give details by cable of the gold movement into and out of the Bank for the Bank week, inasOfficial discount rates at leading European cenmuch as the bank has not resumed publication of tres remain at the rates previously current, namely, such reports. We append a tabular statement of 5% in London, Paris, Berlin, Vienna and Copenof comparisons. hagen; 532% in Switzerland; 6% in Petrograd and BANK OF ENGLAND'S COMPARATIVE STATEMENT. 1915. 1916. 1917. 1918. Norway; 63/2% in Sweden, and 432% in Holland 1919. Feb. 17. Feb. 14. " Feb. 16. Feb. 13. Feb. 12. and Spain. The private bank rate in London has £ • 60,832,000 46,060,800 39,450,535 32,565,730 34,167,265 Circulation not been changed from 3 17-32% for sixty-day and 28,158,000 39,012,911 51,923,359 51,514,369 40,316,039 Publie deposits 117,617,623 99,156,058 145,157,070 126,265,157 120,045,000 Other deposits ninety-day bills, while money on call in London Govern't securities.. 52,679,000 56,349,951 134,959,208 32,839,300 24,562,642 be quoted at 338%. So far as we have Other securities_ _ _ 83,297,000 95,666,673 44,034,194 95,152,596 101,700,537 continues to Res've notes & coin_ 30,236,000 31,332,308 36,140,502 40,704,002 49,828,707 been able to ascertain, no reports have been received Coin and bullion_ _ _ 81,610,117 58,943,108 37,141,037 54,819,732 65,545,972 Proportion of reserve by cable of open market rates at other European 31.54% 27% 18.33% 18.96% 20.40% to liabilities centres. 5% 5% 5% 53•1% '5% Bank rate A heavy reduction in both aggregate and surplus The Bank of France announces another gain in the was the feature of Saturday's bank statereserves gold item this week, the amount being 2,525,150 York Clearing House banks and trust New of ment francs. This brings the Bank's total gold holdings this was accompanied by substanand , companies 5,365,with up to 5,510,746,275 francs, comparing FEB. 15 1919.] THE CHRONICLE tial declines in loans and deposits. These changes are undoubtedly the result of Government financing and reflect in part withdrawals of Government funds from the banks. The loan item was reduced $53,087,000, net demand deposits $77,831,000, to $3,795,231,000 (Government deposits of $269,517,000 deducted), and net time deposits $3,062,000. Cash in vaults (members of the Federal Reserve Bank) increased $743,000 to $95,918,000 (not counted as reserve). The reserves in the Federal Reserve Bank of member banks, however, showed a reduction of $40,337,000 to $517,822,000. Reserves in own vaults (State banks and trust companies) increased $263,000 to $11,011,000, and in other depositories (State banks and trust companies) $57,000 to $11,284,000. In round numbers, the loss in aggregate reserves amounted to $40,017,000, thus bringing the total down to $540,117,000, as against $582,680,000 last year. There was a decline in reserve required of $10,201,330; hence the contraction in surplus was cut to $29,815,670, and excess reserves now stand at $37,401,720, comparing with $89,305,280 in the corresponding period of 1918. The surplus reserve totals here given are based in both cases on reserves of 13% for member banks of the Federal Reserve system, but not including cash held by these banks which last week was $95,918,000. More complete details of the bank statement will be found on a later page of this issue. With the exception of an advance to 6% in call money rates on mixed collateral and 63/2% on all industrial, shortly before the close of the Stock Exchange on Monday,again on Tuesday and Thursday, there was no break in the extreme dulness that has characterized the local money market for some weeks. These higher quotations were not taken seriously in Stock Exchange circles, although some brokers said on Thursday they had received intimations that money soon would be somewhat firmer, if not tight. At the moment there is nothing in the outlook on which the average observer could base such an expectation. Generally speaking, the advance was regarded as reflecting chiefly belated efforts on the part of Stock Exchange borrowers to get accommodations for the day. At the Peace Conference, however, special attention was directed from time to time throughout the week to the 'necessity of making money conditions a world affair and of taking definite action as early as possible on a plan for furnishing the capital needed by all the European countries directly involved in the war, for reconstruction purposes. Presumably France and Belgium are in the greatest need of funds. Some time must elapse before they can hope to realize on the indemnities that may finally be levied upon Germany. Now that the articles of the League of Nations have been adopted it is quite probable that the financial advisers of the Peace Conference will have a better opportunity to secure the attention of the commissioners to the plans on which they have been working for some weeks. Still, with President Wilson, Premiers Lloyd George and Orlando away, it is doubtful that final action can be secured from the conference as a body in the immediate future. Early in the week Seward Prosser, President of the Bankers Trust Co., was quoted in Chicago as having stressed the idea that the United States must prepare for 609 heavy demands for money from Europe, South America, and pretty much the whole world. Secretary Glass's request of Congress on Monday to increase the authorized, but unissued, amount of Liberty bonds for the forthcoming Victory Loan from $5,000,000,000 to $10,000,000,000, with discretionary powers as to rates of interest and other terms, and also for authority to issue not more than $10,000,000,000 interest-bearing, non-circulating notes, with maturities running from one to five years, were freely discussed and favorably received in the financial district. A high interest rate on the next issue,in comparison with that borne by previous ones, is expected. On Thursday the $6,000,000,000 Revenue Bill passed the Senate by a viva voce vote, with only slightly expressed opposition, and now awaits the signature of the President. Already the Treasury Department is putting into effect the machinery for collecting the taxes stipulated in the bill. Secretary Glass held conferences in New York yesterday and to-day with members of the Liberty Loan Committee and with other bankers. It is believed that before he goes back to Washington the general plan for floating the Victory Loan in April will be known in financial circles, if not made public. Our bankers appear to favor a division of the issue into taxable bonds carrying a high rate of interest and into another group with a low rate of interest and no taxes. Referring to money rates in greater detail, loans on call have ranged between 43/2@6% this week, comparing with 3%@5% a week ago. On Monday and Tuesday 6% was the highest, the low 432% and renewals at 5% on each day. Wednesday was a holiday (Lincoln's Birthday). Thursday 6% was still the maximum, though the minimum was advanced to 53/2%, which was also the basis for renewals. Friday's range was 5@532% and 5% the ruling rate. The above figures apply to mixed collateral loans, as all-industrials are still quoted at M of 1% higher. In time money a slightly firmer feeling developed, though this was shown more in a scarcity of funds than in any increase in rates. In view of the approach of the coming Victory Loan campaign, bankers are beginning to show an unwillingness to put out funds for fixed-date loans. Quotations were not changed from 5@53% for sixty and ninety days, with four, five and six months' money still at 53.%, but very little actual business was reported. At this time a year ago all maturities from sixty days to six months were quoted at 5M@6%. Mercantile paper has ruled quiet with only a moderate volume of business transacted. Rates remain as heretofore, with sixty and ninety days' endorsed bills receivable and six months' names of choice character at 5@53%, while names less well known still require 53'@,5%. Banks' and bankers' acceptances were less in demand than has been the case of late. This is du( to the slight flurry in call rates. Trading was dul and the volume of transactions small. Rates wer( firm and without quotable change. The rate fo demand loans on bankers' acceptances remains a 432%. Quotations in detail are as follows: Eligible bills of member banks Eligible bills of non-member banks Ineligible bills Spot Delivery Thirty Ninety Sixty Days. Days. Days. 4, A@43 4.,4@4% 41,4k4)4 4%@4% 4,404X lit WI% 5i@5 53i05 .53i 435 Deliver within 30 Dais 44 b 4% bid 6 b 610 THE CHRONICLE No changes in rates, so far as our knowledge goes, have been made the past week by ,the Federal Reserve banks. Prevailing rates for various classes of paper at the different Reserve banks are shown in the following: "i 7 .1 'a I • i 'Z 1 Discounts— Within 15 days,incl. membe banks' collateral notes__ __ 4 4 4 16 to 60 days' maturity___ 4% 4% 4% 61 to 90 days' maturity_ 4% 434 44 Agricultural and live-stock paper over 90 days 5 5 5 Secured by U. S. certificates of indebtedness or Liberty Loan bonds— Within 15 days, inciudin member banks' collateral notes 4 4 4 16 to 90 days' maturity 24% 43j 434 Trade Acceptances16 to 60 days' maturity 434 434 434 61 to 90 days' maturity 414 4W 4W g a A :-.a.. Kansas City.' I I • .!.% Chicago. I New York. CLASSES OF, DISCOUNTS AND LOAN Boston. DISCOUNT RATES OF FEDERAL RESERVE BANKS. l z 43 434 43 4 4 434 43 434 434 4% 4% 43( 4% 4% 4% 5 43 5 4% 44 4% 434 434 5 5 5 5 534 5 5 534 534 534 53i 53-( 534 4 243j4 4 4 4 14% 4 434 43'43 2431 2434 2434 43('434 434 434 434 434 434 434 434 434 434 434 454a 4W 4W 4W 4“ 414 4“ 444 4W 41, 1 1 Rate of 3 to 434% for 1-day discounts in connection with the loan operations of the Government. Rates for discounted bankers' acceptances maturing within 15 days, 4%; within 16 to 60 days, 434%, and within 61 to 90 days, 434%. Rate of 4% on paper secured by Fourth Liberty Loan bonds where paper rediscounted has been taken by discounting member banks at rate not exceeding Interest rate on bonds. a Fifteen days and under, 434%. Note 1. Acceptances purchased In open market, minimum rate 4%. Note 2. Rates for commodity paper have been merged with those for commercial paper of corresponding maturities. Note 3. In case the 60-day trade acceptance rate is higher than the 15-day discount rate, trade acceptances maturing within 15 days will be taken at the lower rate. Note 4. Whenever application is made by member banks for renewal of 15-day paper, the Federal Reserve banks may charge a rate not exceeding that for 90-day paper of the same class. Sterling exchange requires very little comment this week, since rates are still pegged and transactions limited to the merest routine requirements. Attention continues to centre upon the doings at the Peace Conference, as market experts apparently all agree that no improvement in activity can be expected until the actual signing of the peace treaties. So far as can be learned, none of the modifications recently predicted,of the arbitrary control exercised by the Government have as yet been put into effect. A good deal of interest is taken in the fact that the initial Belgian loan recently announced is to take the form of a bank acceptance credit, which will be available for rediscount at the Federal Reserve banks. It is also announced that American bankers are to extend credits to France, which will be financed through the medium of acceptances, the latter for the purpose of purchasing raw materials in this country for use in restoring the devastated regions of France. Prominent New York banks are to participate in accepting these bills, but whether the banks of Belgium are to draw the bills is not yet definitely known. As regards quotations in detail, sterling exchange on Saturday ruled firm, but quiet; demand bills were a small fraction higher at 4 7580 @4 75 13-16, but cable transfers continued at 4 7655 5 Mon-@4 76 9-16 and sixty days at 4 73M@4 73%. day's trading was dull and featureless; variations in -rates were slight, though demand bills eased off to 4 7577M@4 7580 and cable transfers to 4 76523/ @4 7655; sixty days remained pegged at 4 7332@ 5 4 73%. Pre-holiday dulness marked Tuesday's operations, and the volume of business transacted was small; cable transfers were a trifle easier, declining fractionally to 4 76473/2@4 76523/ on an increase in offerings of sterling bills by London; no specific explanation of this development, however, was obtainable; demand bills were also lower at 4 75%@ 4 7580, but sixty day bills were unchanged. Wednesday was a holiday (Lincoln's Birthday). No increase in activity was noted at the resumption of business on Thursday, and trading was dull and nominal; quotations were practically unchanged at [VoL. 108. 4 75%@4 7580 for demand, 4 76 7-16@4 76523/ 2 for cable transfers, and 4 733@4 73% for sixty days. Friday's market ruled quiet and featureless and still unchanged. Closing quotations were 4 73% for sixty days, 4 75% for demand and 4 763/ for cable transfers. Commercial sight bills finished at 4 75 11-16, sixty days at 4 72%, ninety days at 4 71 7-16, documents for payment (sixty days) at 4 721 % and seven-day grain bills at 4 75. Cotton and grain for payment closed at 4 75 11-16. The gold exports reported for the week included $800,000 to South America, $75,000 to Mexico and $14,500 for Canada. There were no imports. The Continental exchanges have experienced another dull and uneventful week, with trading still of minimum proportions. It is plainly evident that leading international bankers are disinclined to enter into extensive commitments at a time when so many conflicting influences are at work to restrict normal commerce. Among these should be mentioned the shortage of ocean tonnage, the irregularity of freight rates, which is tending to interfere with a free movement of shipments, and the continued enforcement of certain export and import embargoes. Most of these uncertainties are likely to be removed with the signing of the peace treaties, but while it is conceded that important progress towards this end has been made, much work is still to be done. In the meantime, opinion in the best informed quarters is that rates for foreign exchange are not likely to vary widely from those now ruling for some little time to come. French exchange was well maintained, at or near last week's levels. Lire cables are still pegged at the official rates previously current, but checks were a shade easier, though without specific activity. The situation in ruble exchange remains the same and the quotation is a purely nominal affair. A cable recently received states that the Soviet Government of Russia intends to assume responsibility for obligations with the Entente, and this caused quite a sharp advance in Russian bonds and also in ruble currency notes. Itisstated, furthermore, that considerable speculation in rubles is going on in London, large supplies having been purchased at low figures in the Far East. The reason that such speculation is not transpiring at this centre is probably attributable to the rigid control exercised by the Federal Reserve Board over all exchange operations. Fred I. Kent, Director of the Division of Foreign Exchange, has issued a notice to the effect that "dealers," until otherwise instructed, may make transfers of funds to persons not enemies or allies of enemies resident in all parts of Finland. Quotations for reichsmarks and kronen are not obtainable, as no business is being done at this centre in German and Austrian exchange. The official London check rate in Paris closed at 25.98 (unchanged). In New York sight bills on the French 5 cables at centre finished at 5 45%, against 5 45%; 5 453', against 5 45; commercial sight at 5 46%, against 5 469', and commercial sixty days at 5 519', % last week. Lire closed at 5 363/ 2 for against 5 513 bankers' sight bills, against 6 36 a week ago; cables were not changed from 6 35. Rubles remain as heretofore at 14 for checks and 15 for cables, nominally. Greek exchange has not been changed from 5 163/ for checks and 5 15 for cables. Belgian exchange is quoted nominally at 5 67 for checks and 5 65 for cables, the same as a week ago. FEB. 15 1919.] THE CHRONICLE No new feature of especial interest has been noted in neutral exchange this week. Much of the time so little business was passing that the market was almost at a complete standstill. As a result fluctuations in rates were relatively unimportant, with no definite trend in either direction. Swiss exchange was firmer, and this was attributed to an announcement that the Swiss Government has been permitted to arrange for definite cargo space for the shipment of supplies from the United States to Switzerland. Considerable interest was shown in the statement that in addition to the Belgian credit of $50,000,000 already granted, Denmark is now seeking a credit of about $15,000,000 in this country, ostensibly with a view of stabilizing the exchange situation between the United States and Denmark. Scandinavian rates were fairly steady. Guilders ruled a shade firmer, though Spanish pesetas were easier. Bankers' sight on Amsterdam closed at 41 1-16, against 411-16; cables at 41 5-16, against 41 5-16; commercial sight at 41 1-16, against 41, and commercial sixty days at 405 %, against 40 9-16 a week ago. Swiss exchange finished at 4 92 as compared with 4 95, and cables at 4 88 against 4 91 last week. Copenhagen checks closed at 25.90 and cables 26.10, against 26.00 and 26.20. Checks on Sweden finished at 27.95 and cables 28.15, against 28.10 and 28.30, while checks on Norway closed at 27.20 and cables at 27.40, against 27.20 and 27.50 the week before. Spanish pesetas finished at 20.11 for checks and 20.18 for cables. This compares with 20.12 and 20.20 the preceding week. As to South American quotations, the check rate on Argentina was lowered and closed at 44.50 and cables 44.65, against 44.85 and 45.00. For Brazil the rate for checks also declined and finished at 25.60 and cables 25.75, compared with 25.85 and 26.00 last week. The Chilian rate remains as heretofore at 10 7-16 and for Peru 50.125@50.375. Far Eastern rates are as follows: Hong Kong, 74.90 against 78@784; Shanghai, 114 against 123@ 1233; Yokohama, 52 against 523'@523'; Manila, 50 against 49%@50%; Singapore, 563 against 56%@566; Bombay, 36 against 363/2@369, and Calcutta (cables), 363 against 36%@37. The New York Clearing House banks, in their operations with interior banking institutions, have gained $3,425,000 net in cash as a result of the currency movements for the week ending Feb. 14. Their receipts from the interior have aggregated $7,674,000, while the shipments have reached $4,249,000. Adding the Sub-Treasury and Federal Reserve operations and the gold exports, which together occasioned a loss of $78,560,000, the combined result of the flow of money into and out of the New York banks for the week appears to have been a loss of $75,135,000, as follows: Week ending Feb. 14. Into Banks. Banks' interior movement Sub-Treasury and Federal Reserve operations and gold exports Out of Banks. Net Change in Bank Holdings. 17,674,000 $4,249,000 Gain 13,425,000 29,022,000 107,582,000 Loss 78,560,000 $36,696,000 $111,831,000!Loss $75,135.000 Total The following table indicates the amount of bullion in the principal European banks: February 13 1919. Banks of— Gold. Silver. I 1 Total. February 14 1918. Gold. Silver. z Total. 81,619,117 58,943,108 2 58,943,108 12,560,000,151,505,511 133,129,875 10,080,000 143,209,875 997,610,113,683,360 120,316,950 5,719,900 126,036,850 12,375,000142,025,000 129,650,000 12,375,000 142,025,000 2,289,0001 13,297,000 11,008,000 2,289,000 13,297,000 25,868,000115,011,000 79,024,000 28,492,000 107,516,000 3,000,0001 40,071,000 33,431,010 3,499,000 36,930,000 744,000 57,774,000 58,917,000 598,000 59,515,000 600,000 15,980,000 15,380,000 600,000 15,980,000 2,514,000 19,019,000 14,477,000 14,477,000 15,577,000 13,711,000 13,711,000 135,000 ,10,947,000 9,622,000 137,000 9,759,000 6,716,000 6,413,000 6,413,000 England__ 81,619,117 Francea__ 133,945,511 Germany Russia S__ 112,685,75'129,650,11 Aus-Hun c 11,008,000 Spain 89,143,000 Italy 37,071,000 Netherrds 57,030,000 Nat.Bel.h 15,380,000 Swits'iand 16,505,000 Sweden..._ 15,577,000 Denmark_ 10,812,000 Norway 6,716,0 14 Tot. week.722,142,378 61,082,610 783,224,988684,022,933 63,789,900747.862,833 Prev.week 721,945,172 60,874,460 782,819,632683,095,059 63,532,000 746,627,059 a Gold holdings of the Bank of France this year are exclusive of £81,484,340 held abroad. * No figures reported since October 29 1917. c Figures for both years are those given by "British Board of Trade Journal" for Dec. 7 1917. h August 6 1914 In both years. 611 LABOR UNREST AND GOVERNMENT. Two incidents of the past week have a direct bearing on what is in many respects the foremost political and economic problem of the day. Even in the early stages of the war no experienced observer of events had any doubt that the question of labor would be the matter of paramount complexity in the period following return of peace. In Europe the Labor Party was playing a highly important part in national politics, even before 1914; in England especially it came close to holding as an organized party the balance of power in Parliament. With the progress of the war, the drafting of ablebodied citizens into the armies and the insatiable demand for man power in the munitions factories, wages advanced with unprecedented rapidity. The advance was partly effect and partly cause of the equally violent rise in prices; but the extent of the double movement made it a matter of certainty that when the war was over, it would be no simple matter for wages to be lowered along with prices of manufactured goods and profits of manufacture. There were hundreds of thousands of skilled workmen who, both in Europe and America, were earning under the abnormal war conditions weekly pay which made the income of the average professional man look small. What was their attitude likely to be when the factitious demand which had put up their wages should suddenly disappear, and when industry should be confronted with the problem whether to lower wages in some proportion to the lowering of prices, or, as an unavoidable alternative, turn loose such masses of laborers as should crowd the ranks of the unemployed? In the present case, moreover, th,p possibility of a new and defiant attitude by labor—the possibility, in fact, of a revolutionary attitude—came into serious consideration as a consequence of events in Russia; where labor had seized not only the Government but the industrial plant, had driven out the owners and employers and had settled for itself its own wages and its own title to participation in the earnings of industry. Disastrous and chaotic as were the results of the Russian experiment, it was a moral certainty that to some extent—how great an extent no one could say beforehand—the mind of the labor class in other countries would be swept off its balance by the spectacle. The attempt to imitate Russia was at once tried in Germany. It failed; probably because of the instinctive recognition by the German people that, at the parting of the ways in which they stood, a Bolshevik revolution meant sure political and economic death. But this failure did not mean that other countries, in a different way, might not be confronted with the problem. As a matter of fact it came almost at once, even in.England and America. The strikes in Ireland and England during the past few weeks were of a peculiarly angry character. In nearly all of them, the characteristic fact was that work was stopped in violation of agreements previously entered into by the unions and which were still running. Usually the demand was for shorter hours, sometimes for higher wages; but in all cases the strike was begun against the remonstrance of the unions and in advance of any effort at Govern mental mediation. In some of them the specific 612 THE CHRONICLE demands were such as to make continued operation of the industry impossible, and the machinery of the sympathetic strike or the general strike was invoked. An even more outright challenge to the present economic regime was made in our own country at Seattle, long a hotbed of social and political experiment and of industrial unrest. The shipbuilders, having struck (in violation of their union's formal contract with the Government), called a"sympathy strike" of other industries,including even street car service and the janitor service in buildings. Intimidation followed. For a day or two industry, transportation and even the school work stopped, and the strikers, flushed with their apparent victory, began to talk of taking over industry as a whole and running it on their own terms. "The sympathetic revolution," said the Mayor of Seattle, "was called in the exact manner of the revolution in Petrograd." Fortunately,the public authorities did not hesitate. Mayor Hanson of Seattle, himself of foreign birth and Socialist affiliations, took up the challenge at once, refused the extreme demands Of the striking laborers, denounced the sympathetic strike, organized 1,000 armed extra police with instructions to use force against all disorder, and proclaimed that on the next day all business must go on as usual. And so it did. The attempted revolution which, the Mayor said, its authors "expected to spread all over the United States" in actual fact "never got to first base, and it never will if the men in control of affairs will tell all traitors and anarchists that death will be their portion if they start anything." In rapid sequence came the announcement that 54 alien agitators at Seattle and Chicago were being deported from the country under the laws of the United States. In England, after transportation at London had been temporarily restored through recourse to motor lorries, the demonstration subsided and the strike in the subways ceased. It began to wane in other industries. Last Tuesday the British Premier, speaking in the House of Commons, warned labor against repetition of such excesses, explaining patiently the inexorable conditions under which the falling prices and profits of industry in the readjustment period would produce an alternative in which an increase of operating costs would lose the market for the manufacturers, so that instead of full employment at higher wages or shorter hours, labor would be confronted with inevitable unemployment and distress. But, after saying that "thes e disturbances are promoting the very evils against which they are supposed to work," Lloyd George went on to say with directness and sternness: "I know the perils, I know the dangers and I have deliberately reckoned carefully the cost, and I say' that if the people of this country are prepared to face both peril and cost with the courage, endurance and patience which they exhibited in the face of equally great menace, if all classes of the community are prepared to make the necessary sacrifices for the stability, security and freedom of the industries upon which the future of this land and the happiness of its people really depend, I am prepared to say, with full knowledge of the peril, that no section of the community, however powerful it may be, can be or will be allowed to hold up the whole nation." In America and England, therefore, the issue is squarely presented. We do not know what the further development of this Governmental policy will be, and we do not suppose that the efforts of [VoL. 108. agitators to undermine the industrial structure are ended. We may still have troublous times ahead of us. But the essential fact is that responsible government in both countries has asserted its rights at the start, has responded to threat with threat, and has thereby called forth an outburst of popular approval throughout the nation. This is our strong ground of assurance against any sequel resembling even remotely the conditions which arose in Russia, as a direct result of Kerensky's feeble surrender to one after another of the extravagant demands of labor—with the natural result of a labor revolution, a labor Government, a reign of terror by the dictators put in power by labor, and the complete collapse of productive industry, orderly politics and individual comfort or safety. TAKING THE WRONG ROAD TO PROSPERITY. The Chamber of Commerce of the United States, through its Federal Trade Committee, has formulated certain "proposals" touching trade that are to be submitted by referendum to various member bodies throughout the country. The proposals embody: A revision of all anti-trust laws now on the statute books; the formulation of "standards of general. business conduct to be administered by a supervisory body," a statute making the Federal Trade Commission this supervisory body; and a provision increasing this Commmission from five to nine. It is to the second of these propositions we wish to address ourselves. There is little dispute anywhere as to the revision of the existing anti-trust laws. One statute in that direction has already been enacted. But many onerous restrictions on trade are yet to be removed. This second proposal is so general in its terms that we may be permitted general comment on the principles involved. And the first question is how can any Governmentally constructed body arrive at the proper "standards of general business conduct?" Is it to re-enact the Golden Rule? When we divide business by the convenient economic terms production, distribution and consumption (or use), a statute would have to be very broad indeed to set out standards of conduct that would apply equally to all. If we pass from morals to ethics and from ethics to economics and from economics to actual trade and commerce, just what "supervision," what "conduct" can be in contemplation? It would seem, almost, that "business" is to be placed under a Federal body which will make its own "standards" whenever and wherever it pleases to assert itself. In the first place we have come to the point where we approach this whole matter of supervision from a hostile attitude. And we do not mean "supervision" (after the fact or during the process), we mean "regulation" (before the fact and according to preconceived ideas as to what should be done). Take the matter of buying and selling grain for future delivery and the "settlements" that ensue without actual delivery. Here the principle of compromise in the consummation of contracts can never be eliminated without a corresponding limitation on the freedom of conduct in business. And from the moment of "production" tb the last moment of "use" no undeviating line of conduct can be rigidly determined—for there is nowhere omniscience to perceive what condictions may arise. Our Government is even at this time "canceling" huge orders FEB. 15 1919.] THE CHRONICLE 613 confor supplies it does not now need. But such a provi- nine men with plenary powers over "general and y democrac of days the in this d duct"—an liberal a argue not does ted sion as is here contempla Quixotic a such interpretation of conduct. As requirements arise, liberty. Think, too, of setting up on as a trade it is intended apparently to prevent something, and body as the Federal Trade Commissi that of course is a "conduct" that 'is inimical to monitor. In doing this we are merely putting business in the the public welfare and (or) downright dishonest. of centuries hands of a petty autocracy, sitting at Washington, And yet "trade" as a whole, by reason stan- clothed with an undefined power it must needs seek ethical highest the of development, embodies e this to exercise,and by doing so putting "business" to of men—wer e intercours dards known in the which it on is endless trouble, expense, and confusion. We do credit of structure not true the whole is not it necesSo ground. not seem to be able to view "business" as a correlated the to fall based would of no super-law and ; Decalogue whole, woven of progress, enlightened by the exthe say to re-enact conduct can ever be made that rises higher than the perience of ages, and imbued with the energy, common honor and honesty of business men every- intelligence and ethics of our civilized human relawhere. Thus pure supervision, as distinct from tions. Because, as the fabric that feeds and clothes regulation, if it ever arrive at any "general" justjudg- us all shows sometimes the stains of a cupidity ments must conform to standards previously set that creeps into the "propensity to acquire," we up by actual business conduct, and enters upon any appear to want to discard the garment and adopt restrictive course at the peril of the freedom of one woven of the intrigue of politics and the vanities of artificial law. We are become obsessed with business. of conduct Government ownership, control and supervision To get down to fundamentals, freedom the to individual d and get nowhere in our endeavors because there is in business is as much guarantee as nt of freedom Governme of nowhere to go in the end but back to natural laws citizen by our form to and where when What, worship. that do control. speech and how and and when where re, manufactu to or plant What is the genesis of this condition? Why do for or sale market a up set or store or shop a open to we not stand up for the integrity, independence and exchange, the means by which to transport, and the freedom of business in these halcyon days of free route, from seller to buyer, the manifold uses to and independent nations throughout a new world? which a product or article may be put, these deter- Why does "business" itself, through such bodies as minations lie in the individual. They constitute the Chamber of Commerce of the United States, conduct. They are essentially helpful, not criminal. take seemingly the easiest way out by seeking some And supervisory laws, if they are to be tolerated, if light and ineffective form of general "supervision" they are not to bind and restrict arbitrarily, must by Government? Why Government? Is there conform to standards already made, or in the process here not a fatal interposition to commercial freedom? of making through experience. And, like the "com- Why Government, why not this Chamber of Common law," guide equity courts in adjudicating any merce itself, if there must be centred somewhere disrupted relations in trade. They neither restrict, outside of and over "trade" a power to control, regulate or control, but merely declare the common regulate or supervise? Has no evil of conduct in judgment as to business conduct. business ever been corrected by development and General powers of even supervision in any Federal the unity of opinion of those engaged in industry? body are therefore to be feared because they tend Has progress carried us backward or forward toward to become regulatory and restrictive. And while more equitable and equable standards of conduct? it is perhaps possible,even feasible and to be desired, It is time, be belive, to right about face. We talk that for purposes of guidance and education, in- of quick resumption and then rush off to Washington formation, that the principles of conduct in business to create an interposition to any steps in actual arrived at by development be declared in national resumption we may wish to take. Can we not free statutes, this can be done wisely and beneficially ourselves from this delusion or obsession? Can only as it is done liberally, and when done would we not bear with some few manifest wrongs knowing bind any Federal board or commission as much as that freedom will soon cure them? Can we not it would the individual or corporation, becoming recognize "business" as a component, if not a foundaat best a mere signboard on the way. tion, of civilization—and that no "Government" can The predominant fallacy under which we labor in "ever rise higher than the people who make it," this wole subject of trade legislation is that we must and who sustain it, by the very elevation and rightgo to Government for relief because there is some- fulness of their business conduct? We believe it thing wrong in the "general conduct" of business, unwise, actually dangerous, an obstacle to our comalbeit that conduct is by the very same citizens who mon advance, a denial of our institutions, to put make the laws under which we live and toil. When plenary power to any Federal Trade body, even in previous discussions anti-trust advocates were for a "supervision" of "standards Of general business confronted with the natural law that undue profits conduct." induce competition and the creation of a rival concern, they took refuge in the admission that there were THE STATUTES OF GOD—ECONOMIC good trusts and bad trusts. Now, we have reached RECONSTRUCTION. the point of permitting combinations, "trusts," for The winter passes; and soon it will be springtime. foreign trade. But what is good for the alien and heathen is not good for us. Concentration, combina- Hidden in the earth, mysterious alchemies are at tion and growth might make for the greatest good to work, too subtle for our comprehension. The the greatest number but we are yet unwilling to admit eternal and onmipotent creative forces never rest. it. And for fear we may unloose the powers of evil What we term the transition time from reaping to upon the world, especially in the trying days of sowing again is a time of preparation, of reconstruc"reconstruction," it is proposed to invoke a body of tion and of renewal. By secret and hidden:processes 614 THE CHRONICLE [vol.. 108. the beneficence of nature makes ready for the call this intensive cultivation or increased acreage, blessed harvests that are to come. if you will, but with all his mind and strength he May we not find to this some analogy • in our cannot originally produce a single grain of wheat. economic reconstruction? Are we not, through When it is grown by nature, its distribution becomes the sheer force of habit and custom, ever looking to more his own problem, but in this he is not sole the artificialities that lie on the surface, such as master. His liberty never becomes license. He legislation, and forgetting those deep and under- may remove mountains by tunneling them and in lying laws man did not create and cannot control? ocean transport he can distance the wind with steam, Upon all the customary energies of our civilization but he cannot do these things save at the expense of war has lain as a winter's pall. Suddenly, like the cost to the consumer. No magic law can convert sudden rush of melting snows in spring, the whole a shock of wheat into manna and waft it to the scene changes, and the pent energies, ambitions, and mouths of the starving. So the means of distripowers, of men are released by an armistice which bution becomes an integral part of the equilibrium ends the war. As men everywhere feel the quicken- of the world's food supply. While we are sending ing of new freedom there is impatience and unrest a hundred million donation to the unfortunate and that the rising opportunities cannot attain im- starving peoples overseas Mr. McAdoo sends out the mediate fruition. There is, because of our growing statement that railways and waterways cannot be dependence on legislation, a call upon Congress to co-ordinated if the former are turned back, and reinstate our former condition of industrial equi- Senator Cummins, evidently apprehending a fear librium. And in this we forget that the laws of that they will be, and precipitately, introduces a supply and demand never abrogated during the war, bill to take the power to do so from the President but were ever at work, throughout the world, how- and vest it in Congress. And here begins the ever impeded, to make the efforts of mankind ceaseless rounds of effort to restore, to reconstruct, fruitful. by legislation, while the pent powers of the people More than this, because we are bound up in the through their own energies and agencies cry out for toils of our own artificial changes, our own departures freedom. from the natural order, in production, distribution It must appear, for we cannot continue here the and consumption, we seem to hesitate, to pro- illustrative phase of the argument, that we can crastinate because our eyes are yet fixed upon the never align ourselves with the world-girdling laws of powers of government rather than upon the return- supply and demand, always existent and powerful, ing tides of commerce regulated by the continents, until we free our minds from the domination of our soils and climates of earth and by the racial charac- fancied dependence on Government. We do not teristics, the wants, needs, tastes of peoples, every- give these vast, intricate, complicated problems a where. It is true that there are vast undertakings chance to deliver themselves. Our very minds are and processes, such as the Conference for Perpetual clouded, hesitant, bewildered, because we are in the Peace, going on and the physical demobilization of grip of a sentimental "control"—where no control is. the destructive forces of war, that we are compelled We do not resume, because we will not resume. to consider. And many of them must be settled We wish—because we expect artificial aid. We before the beneficence of growth, law and order have reversed the natural order of things because in can begin their natural supremacy. Many are war we wanted to concentrate, mobilize, direct and world-wide in scope. But as we turn to what we control all in the interest of winning. term "reconstruction" we seem to wait on our own Again and again men say—Government ownership immediate lawmaking powers to restore our former must have a chance to prove itself, or control and state. operation as the case may be. Every nation is to Let us illustrate this in our food problem, taken have a larger foreign trade. And looming against the world over at this time the most imperative this is the sentiment for national protection by problem of all. It develops, now that war has restriction. Meantime the world actually starves; ceased, that there are surpluses of foodstuffs in three a