At this writing the dominant topic in security market circles is the labor situation, particularly as regards the railroad strike. I cannot pretend to fully discuss the merits of this subject in the limits assigned to me, but one point stands out quite clearly. I refer to the fact that the principal object of the leader of organized labor is to eliminate the Labor Board. From the point of view of the labor leader this attitude is easily understood. If a board of arbitration, backed up by the Government is to endure, the power and perhaps the place of the labor leader will soon vanish. If the Board can be eliminated and all controversies settled directly between the unions and the railroad executives, we will simply revert to the old order of things and the labor leaders' job will be as essential and as secure as ever.

Real and Nominal Wages

So far as I am able to judge, organized labor is making out a very poor case. Their most forcible and most frequently repeated argument is that minimum wages of common labor have been reduced to 23 cents an hour which does not permit of living decently. Many fair-minded but inexperienced observers, including some of our editors have agreed with the laborers on this point. Failure to understand the economic difference between real wages and nominal wages is responsible for most of the misunderstanding. The rate of 23 cents applies to only a limited number of men in Southern districts where the cost of living is comparatively low. The maximum rate for this class of labor is 35 cents and the average is 32.7 cents. The rates named are based solely on real wages, i.e., the amount of commodities for which a certain amount of work can be

exchanged. Nominal wages, i.e., the number of dollars, are not, and should not be considered. A little reflection will convince the unbiased observer that the minimum rate of 23 cents is exactly as high as the maximum rate of 35 cents, if considered in real wages. The Labor Board surely has no desire to discriminate in favor of the workers in certain localities.

Effects on Security Prices

Aside from the disturbances and drawbacks growing out of a strike the railroad outlook is quite satisfactory. The bad effects of war conditions and Federal control are gradually vanishing and the outlook for gradually increasing volume of traffic is improving. While a prolonged strike, even if only a partial one, would occasion some losses and probably some selling of railroad stocks and bonds, it does not appear that security values will be permanently injured to any considerable extent. There are so many favorable offsets and the level of railroad security prices is so low that declines of a few points based on labor conditions will probably be greeted as opportunities by far-sighted people.

The General Market Outlook

During the last two months I have suggested the probability of a period of hesitation or reaction in stock prices. This view was based upon the theory that the industrial stocks, which make up the bulk of the trading operations, had advanced far enough to discount or perhaps over-discount the improvement which had taken place in general business. The reaction may go somewhat further, but that is conjectural. General business continues to make gradual but satisfactory progress and has now, so to speak, caught up with the market. If this is the case, and if improvement in business continues, the market may be expected to begin another process of discounting before long.

OF BUSINESS

GRAPHIC PORTRAYAL REVIVAL The Chemical National Bank of New York has issued a bulietin which presents in graphic chart form the cumulative evidences of business recovery. The first chart shows the decline in discount and interest rates which indicates the easier movement of credit and capital. The second chart relates to the revival in the security markets. Industrial stock prices, as sensitive indicators of prospective industrial profits, stand 36 per cent. above their 1921 low, and railroad stock prices stand 27 per cent. above. Most striking is the marked increase of activity on the stock exchange, the number of shares traded in May being 200 per cent. greater than the lowest monthly figure for July, 1921. Chart three appertains to prices and wages, which shows the extent to which these factors have been liquidated.

Wholesale commodity prices, as measured by United States Bureau of Labor Statistics, stood in April at 56 per cent. of their peak with retail prices at 63 per cent. of their maximum. Living costs computed by the National Industrial Conference Board, showed a decline of 25 per cent. from the July, 1920, maximum. Chart four reveals the increase in volume of trade. Widely separated industries are feeling the impulse of renewed activity. Chart five shows the increase in volume of manufacture and building. Charts six and seven portray the course of business depression and revival in 1907-1909 and during 1920-1922.

Albert H. Wiggin, president of the Chase National Bank of New York has received the honorary degree of Doctor of Laws from Middlebury College. Samuel H. Miller, vicepresident of the Chase National, has been the recipient of the degree L.L.D. from Juniata College, Pa.

LARGER QUARTERS TAKEN BY THE EQUITABLE TRUST COMPANY IN PARIS The Paris office of The Equitable Trust Company of New York, which was established in 1910, has far outgrown its original quarters and has recently found it necessary to secure space on two additional floors in the large office building at 23 Rue de la Paix. The fact that American banks in Paris are seeking larger quarters to meet the increasing volume of business is a sure indication of the growth of commercial activity between the United States and Europe.

A steadily increasing number of American business firms are realizing the desirability of dealing with an American bank abroad, employing American methods. They realize that they can effect a considerable saving in interest yearly by paying foreign bills by check or replenishing balances when rates are regarded as most favorable. Then, too, an account with the foreign branch of a large American bank well known in London, Paris or other prominent business and financial centers of Europe enables the American merchant to establish a valuable local credit reference as well as secure reliable first hand trade and credit information. Many American travelers are taking advantage of the foreign travel service bureau maintained in the Paris office of The Equitable..

R. C. Bortle, vice-president of the National City Company, has been elected presiIdent of the Bankers' Club of New York for the ensuing year.

Clarence E. Hunter of the New York Trust Company has been elected an assistant treasurer of the company.

Colonel Charles Elliot Warren, vice-president of the Irving National Bank of New York, who was a member of the staff of Major General John F. O'Ryan, commanding the 27th Division, has been awarded the Distinguished Service Medal.