The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1919-01-15
FINANCIAL FORECAST FOR 1919
casper" in Leslie's

The new year will open with a tenn
porary halt in the rush of business
while every one is waiting for lower
prices, both of raw and finished mat
erial. Plans for new buildings in ev-
cry large city are drawn and con
tracts amounting to millions are rea-
/ dy to be let as soon as the prevalent
high prices of building material and
of labor show tendency to relax, as
they must, with cessation of the war
order pressure.
This period of uncertainty and hest
tation will not be prolonged. After
the war between the state, which
entailed tremendous losses on the
North and the South, The slump in
business was only temporary, and the
reaction prompt and energetic. 1t was
felt everywhere, especially in the
North, and more slowly in the South.
The country in 1865 was left to take
care of itself. The administrat at
Washington had not iatrusted the set
Element of affairs to war, labor, trade
finance and other commissions. Many
of these are unnecessary and all should
be speedily dissolved.
The remarkable balance of trade il
our favor, brought about by the de-
mandS upon our resources from our
allies, will show a decided shrinkage
in 1919. Unless we can reach out for
foreign markets and compete II these
with our rivals-including Japan aid
India, with their loW-priced labor, and
rapidly developing and competitive in
dustries our hoard of gold will melt
away.
In 1919 larger number of our peo-
pie are holders of investment secur-
tiles than ever before. Every one of
the twenty million purchases of Lib
erty Bonds now realizes what good
security is. Millions of these have
an entirely new conception of Wall
Street investments. Many of these
may enter the field of speculation In
der such conditions, a big bull move
ment would sweep the nation off its
feet and give the stock market an
unprecedented boom. 1t would be a
great misfortune if we should have
a repetition of what occurred some
twenty years ago, considering the dis
astrous consequences when the boom
finally burst We must depend upon
our conservative banking institutions
to put the brakes on any tendency
toward such a wild orgy of specula-
ton, for we are nation of gamblers.
Commodity prices must recede In
1919, especially the prices of farm
products. Never before IL our histo
ry have the industrial masses, includ-
ing the farmers, enjoyed greater pros
perity or held larger savings and in
vestments than now. Under such con-
ditions prolonged period of depres-
sion is impossible.
With the return of our millions of
soldiers, many of them to find their
places filled by women, there must
be an oversupply in the labor market
which ultimately, perhaps after SER
ious labor disturbances, will be re-
Elected in lower schedule of wages.
Bankers, with their customary fore
sight, very conservative basis and the
stock market, which rose during the
period Of initiation and high prices,
will fall during the period of declin-
ing prices and closer credit. These
things will not happen Immediately,
put before the close OF 1919.
"A Happy New Year" it is, for 1919
finds the United States first among
he nations OF the world, supreme and
on this continent, while The