Evening journal., 1919-02-11

are most entitled 10 consideration. very
reluctantly am constrained TO say thai
1 cannot wisely determine DOW In Feb
rusry the terms OF the bonds or other
obligations which II would be wise TO
offer for subscription In April, when
the Liberty Loan campaign should
probably begin.
AT this moment we are In a period OF
readiustment. To the slackenlng Of in
dustrial and commercial activity Incl
dent to the termination OF active war
fare has been added the usual dullness
OF the winter season. The necessary and
desirable contraction OF our credit
structure has begun and VIII be greatly
facilitated by the enactment or appro-
pirate legislation TO permit the llGnlda-
ton Of claims arising under Informal
armv contracts.
"Steps have been taken 10 break The
deadlock which had arisen growing out
OF the maintenance. nominally at least,
OF war prices In certain basic indus
tries. Upon the enactment OF sppFopTi-
ate legislation 10 enable the'foOd adm n
istratlon to protect the guarantee
given by The United states am hopeful
that 10 viii prove possible 10 restore
the operation OF the law OF supply and
demand with respect TO foodstuffs with,
as I bel eve a consequent reduction In
the cost Of living A period OF rising
prices and OF intense Industrial actlv-
ity such as we have experienced dur
ing the last four years Is always a
period OF falling prices and OF the o0n-
traction OF credits Is always a period
OF depression.
"The retardation OF the process OF
readlustmenE by artificial means can
only Increase the evils inherent In the
situation Buying will not begin AMI
activity will moi set In until the COM
munity at large Is satisfied that prices
have reached bedrock.
Secs Growing Prosperity.
81 am very hopeful that measures
now under discussion may result in
the rapid acceleration Of The readjust-
meni and am firmly convinced inat II
that be. done America has before her
new per cd OF great and growing pros
perity. | am even sanguine enough TO
believe that. Il Is within The range OF
the possible that SO much may have
been accomplished on the lines above
indivaied, before the expiration OF two
months from now that The whole stu
alton will have been changed and thai
we may look forward 20 the successful
issues OF the Victory Loan on terms
which today would seem quite lmpos-
sible.
Furthermore, merely as matter OF
technique OF bond Ilfng II would
be a fatal mistake TO flx the terms OF
the loan so long In advance OF the
offering. The issue would become stale
and its attractions would have been
discounted long before the loan cam
paign begins. 10 will be remembered
that the Second Liberty Bond act was
as late as September 2i and
the bonds were offered on OCTOBER 4,
1917; that The Third Liberty Bond act
was approved April and The bonds Of
fered on April 6, 1918. and that the sup
plement to The Fourth Liberty Bond
act was approved September "a and
the bonds offered on Sentembe- 2s,
1918.
Therefore. and in view OF the early
expiration Of the life Of the present
Cong -ess and the apparent impossible
lty OF conven ng and organizing the
new Congress in time 10 enact further
bond legislation before the Vlcto.y
Liberty Loan campaign begins. re-
luctanuy ask greater latitude In the OK