The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-04-19

May Affect the Return of Full
Measure of Prosperity.
Fifty per cent Of all liquidation pre-
ciptated by the stringency Of last October
has been completed and Is out OF the way.
The remaining 50 per cent win be car
ried on slowly in such way as not TO
cripple individuals, corporations, or
banks. The time has come in my opln-
ion, when business should so forward
with confidence, for nothing in sight and
nothing prospective, barring disastrous
crop failures, could seriously affect the
financial and industrial affairs Of the
United States within the next few
months
This statement appeared recently as the
view Of a prominent banker in Chicago,
and seems to express the exact truth
briefly in regard 10 the business situation
In the country generally, as well as 10 the
chief center Of the West This banker
said further that he expected the iqui-
dalton, in securities especially, TO con-
tinue for perhaps a year. He said that
II was better for all concerned for the
adjustment TO take place gradually.
RecuperatiOn Well Advanced.
But the most hopeful view. according
TO this man, was that the process. OF. re-
euperation had been going on steadily
for at least three months, and would go
on with increasing momentum during the
further work OF liquidation. He thought
the recuperative process had become al
ready strong, sufficiently so as to give all
a cheerful confidence in the outcome.
Taking a close view Of conditions, as far
as they were known TO the Chicago
banker, they were in good shape for a
continuous and energetic activity. with
out squirt CT boom. until business men
in all departments were given on solid
ground, with larger profits than can now
be realized.
This view of the present situation is
consistent. and essentially sound. In
Washington the retail merchants are en-
gagged in spring trade that compares
favoraby with former years. Several of
those prominent in business state that
the volume Of trade is greater than il
appreciably less. Anyhow, so far as the
Capital is concerned there IS no reason
for Encouragement.
Banks on Sound Basis.
Every financial institution is on a sound
basis. no business failures Of consequence
have occurred. trade is good. the real
estate business IS moving along well. lots
are being sold, and new houses being
built as much as in former years The
direction of things in Washington is es-
sentially forward. II some men are oelig-
ed TO work on a little narrower margin
than formerly, the disadvantage can be
overcome by patience and energy. The
opportunities fer expansion are not
changed by the money furry Of last year
No one viii seek 10 deny the statement
that il is safer to launch upon some
project now than Il would have been n
the seemingly prosperous times a year
ago.
As in Washington, so the outlook is
good the country over. Even the quad
rennial bogy OF the Presidential election
is not d serious deterrent to business.
1t probably affects the stock market and
the speculative industrial market more
than anything else; but business men,
the actual producers, are too busy to
bother with politics, and they are giving
attention to their factories, railroads,
mills. hanks, and farms, seeking TO derive
the best possible profits out of the coming
summe~ season.
Panic Teaches a Lesson.
One Ct the important lessons Of the
money stringency of last year was that
the banks were averse to allowing BUSH
ness feilure where It could be avoided
This care over established business enter
prises extended first TO financial institu-
lions and then to the large industrial
plants, and so on 10 the smaller and less
important ones. In other words. the
business community has effectually learn
ed the lessen that unity Of effort Will ae-
more than individual action, and
that no business concern stands isolated
in the modern world.
One of the effects of money stTingency,
as given by the Dry Goods Journal. is
that wholesale and retail merchants are
buying less goods. holding smaller
stocks. and reducing Indebtedness as
much as possible. IN other words, the
great business Of the merchants is brought
a little nearer TO a cash basis than It was
a year ago.
Credits Are Shortened.
Il appears that the time limit Of credits
has been shortened. From the manufac-
turer to the country dealer money in a
little smaller volume viii flow az a more
rapid pace along the river Of trade this
year than last. But that IS In itself
healthfui. 1t IS part Of the process OF
liquidation. in which big stocks Of goods
are cleaned out, the shelves OF stores filed
with new and most salable materials.
money realized sooner, and bills more
promptly paid. And ii is TO be remem-
bered that this accelerated speed IN bust
ness is better than the immense volume
of transactions carried on last year with
lax credit and longer time Of payment
Hence it is a time TO buy as much as can
be safely carried in stocks, for goods are
cheaper now than they will be six months
and q year hence, when business has be-
gun to feel the thrill Of larger demand.
The Dry Goods Journal calls attention
to another point that is significant. It
states that while the volume Of business
this year is considerably smaller than il
was last year. which was q record
breaking year. the recession has not yet
reached the sTnaliness OF the volume Of
trade three years ago, To put Il differ
emily, the effect Of the recent stringency
has not put business back more than
a year and q half in the actual volume