New-York tribune., 1919-12-29

cheer. "Well,' he said, "yOu almost
convince me that business is going to
the dogs; but I'm stubborn optimist.
Let me say for your benefit that,
quite apart from foreign trade, this
country has enough untitled do
mestic business to keep its industries
humming for many months. Just
hold tight to that fact and remem-
Der that hard times never come when
there is mofe than enough work to
keep every one busy, as is the case
to-day" That was the end of the
conversation.
1t is a fact that save for the
rumblings caused by economic dis
turbances in Europe, the business
outlook, as far as the immediate fu-
ture is concerned, appears to be IA
vorable. The purchasing power of
the American people has been pretty
we'll demonstrated during the past
week. Merchants have been hard
pressed to satisfy the enormous de-
mand for goods and, indeed, were
not able wholly to satisfy it. There
is nothing to indicate that any let
up in this demand is in sight. And
conditions in over-the- e-counter busi-
ness are no different from those in
other lines. Seeking place to live
IS still task that fills one with de-
spalr. A steel company reports that
1T has booked all the business it can
handle during the next six months
and is expanding it's facilities to
meet the demand. If it booked all
the business offered it would be as
sured of capacity operations for at
least two years-and not I of it
Tor export. Scores of similar cases
might be cited, all pointing to the
same thing-a volume of untitled
business without precedent in the
country's industrial history.
High prices furnish a much less
potent check to business than they
did few months ago. There is
much business to be done that is of
such pressing nature as to make
prices a secondary consideration.
Moreover, confidence in the general
level of prices is growing, and that
is all that is needed to spur the de.
mand for goods and services. Busi
ness men are saying that the only
way to force down prices is to bring
about a liquidation of labor, and
the only way to bring about a
liquidation Of labor is to force a
crisis that would cause widespread
unemployment. Naturally no one
wants liquidation at such a price.
The slump in foreign exchange
apparently has not brought about
very drastic reduction of European
purchases here. AZ any rate, the
November foreign trade figures
showed that exports were the great
est on record, with t. single exccp-
ton. Europe talks catastrophe
and keeps on buying. It would be
foolish to underestimate the serious
ness of the foreign sitnation, but
after all, it may easily prove to be
less gloomy than the slump in cx-
changes might indicate.
1t looks bad for England, for cx.
ample, to see the pound sterling
quoted IN this market at far less
than ST.. But there are few who
seriously believe that England is in
dire straits. The cables tell US that
she is herself granting long term
credits to Germany and other Gus
toners. Undoubtedly the needs of
some of the European states are
pressing and some of them will see
hard times this winter, but it is tc
be expected that the more urgent
requirements of food and the ncces.
sites of life will be met and soono,
or later means of providing the
credits necessary to enable them tc
purchase raw materials here will b,
found. The signing of the Edge
bill is step in that direction
although it by no means solves the
problem. 1t is encouraging to learn
that the Dawson plan is still under
consideration and that eventually it
may be adopted.
The stock market showed decided
Improvement last week. In spite of
the fact that money was scarce and
dear throughout the period, prices
went substantially higher. The
market at all times showed great
resistance to selling pressure and
the bears apparently became dis
couraged toward the end of the
week. Although money ranged
from 10 to. Is per cent on Friday
there was a general advance on a