Evening star., 1919-05-04

~ week at the convention III St
~ Louis of the Chamber of Com
merce of the United States
were notah BILE for the tone of conf
dence and optimism which pervaded
them. American business apparently
is not down-hearted. 1t has gone
through a trying period and has other
trials ahead of it, but, courageous and
forward looking. it sees no reason
for dismay.
Coincidins a s these speeches do with
late reports from financial and indus
trial centers. there would seem to be
warrant for belief that bottom has
been touched in the pool of business
stasnation; that from now on things
will mend II is true that improve
ment in conditions is not yet marked.
but that there is Improvement at all
is fact full of encoura cement.
Business Began to Slump.
With the signing of the armistice
last November business began to slip
backward. down from it's peak of high
prosperity. and this descent went on
unchecked week after week and
month after month. 1t wasn't rapid
and it wasn't panicky. but it's prog
ress was SO relentless that it became
fear-inspiring. Each week conditions
we're a little worse than they had
been the week before
But now there have come these re-
cent weeks when the trend apparent
ly is upward. More wheels are turn
ing today than were turning a week
ago; more goods are moving to and
from the shelves of merchants; few
er men are out of jobs, larger num-
ber have full-time employment. Dis
putes between employer and employ
ed are diminishing. both in numbers
and in consequence.
1t may be a paradox that a move
ment up hill should gather more mo-
mentum from its own progress than
one coming down, but the conviction
is deeply implanted in the minds of
American business men that the
ground will be regained much more
rapidly than it was lost. They be-
lieve al era of unparalleled prosperity
lies just ahead-a prosperity which
will be far more healthful than that
which was war born and the fruits of
which will be more equitably distrib-
uted.
Consuming Power Tremendous.
There never before was a time when
the consuming power of the American
people was as great as it is today.
Not only have they the power for con-
sumption-the wherewith to buy-but
they have very definite needs which
require to be filled. Civilian consump-
ton has passed through a very con-
siderable period of curtailment, 30
that there is a deficit in the stocks of
goods in the homes of consumers as
we'll as In the hands of merchants.
The making up Of these deficits, cou-
pied with the increase in normal con-
sumption which is bound to result
from a high-wage prosperity. will
keep the wheels turning long time,
without taking account of the in
creasing demands which foreign mar
kets are bound to make on American
production.
The slump in business which fol-
traceable to a number of causes. but
concededly the most potent of them
was the high price level which had
been created by war demands. This
condition was not peculiar to the
United States, but was fairly general
throughout the world Indeed, prices
were relatively lower here than in
most of the other countries actively
engaged in the war and lower than
in many of the neutrals. According
TO the figures of the bureau of labor
statistics. the wholesale prices of all
commodities in this country in Sep
tember. 1918, were 107 per cent over
the average for the year 1919. This
was the highest figure reached IN this
country. The price level in Canada.
according to the Canadian labor de-
partment. reached the high point last
November. the price level then being
lI5 per cent over the 1919 figures. Ac-
Cording TO the London Economist, the
price level in the United Kingdom was
highest last August. being at that
time l33 per cent over the 1913 aver
age The latest figures available from
France are for the month of May,
1918. when the index figure OF the
StatistiQue Generate showed an IN
crease of 235 per cent over the levei
. for 1913.
Had Option as to Buying.
Where the situation in the United
= states differed from that in the Euro
Tean nations was that Americans mao