The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-03-17

begun under official auspices to get
down to lower price levels by coopera-
tive effort.
In this the iron and steel industries
have taken the initiative and it seems
as though their action would be fol-
lowed by those concerned in the pro-
duction of building materials. Should
this be the case the result will be to
bring about the much-needed revival
Of construction, with the consequent
employment of multitudes of handi-
craftsmen. And this is the best period
of the year for this to happen.
In the textile industries the necessi-
ties OF the case are forcing price re-
auctions to such an extent that those
concerned feel there is hardly any
need of trying to do more in that di-
rection with the aid of governmental
agencies. This, however, only applies
as yet to the primary markets.
The ultimate consumer is not sup
posed to get the benefit of the lower
prices until the fall, after the goods
bought by dealers at the high levels
are disposed of. Despite this fact,
however, the retail business continues
eood in most localities, especially in
women's wear, the prospect of an early
spring being a powerful incentive i'll
this direction.
Crops and Business
Writing of the agricultural outlook
as bearing on business Henry Clews
says:
The early coming of spring is an
important aid to business recovery, as
planting and all outdoor work will
soon be running on full time. Reports
from the agricultural districts are es-
recially encouraging. Farmers are en-
joying record prosperity, receiving
highly profitable prices and preparing
for another season of the same char
acter. In all probability the new acre
age will surpass all records and there
will be no Bolshevists in the farming
districts. Spring wheat is in good COLI
dition and cotton planting will proceed
on an increasing scale from now on.
Europe is in a state of anarchy; is
consequently likely to have short crops
and must depend very largely upon
America for food, which means large
exports next autumn and winter.
when peace has been attained and
the embargo upon the Central Powers
lifted further demand will be made
upon our food supplies. Germany will
want cotton, copper, oil, rubber and
other raw materials in large quanti-
ties and has doubtless already antici-
pated these wants to limited degree.
But how she will pay for these arti-
cles is still a serious question, for Ger
many has not the funds nor the goods
as yet wherewith to pay, and appar-
emily there will be no other course
but depending upon this country for
credit for a considerable period.
"Since Germany imperatively needs
these products anarchy must be sup
pressed so that the country can earn
the money or materials wherewith to
satisfy those needs. At present the
outlook in these respects is very dark,
indeed, so dark that it would seem it
cannot long continue, for the German
people are an intelligent and orderly
people, and their madness must soon
exhaust itself.
Public Must Relieve Banks.
"In the money market the govern
ment is, of course, the dominant fac
tor. Already the BANKS are carrying
about $3,000,000,000 of treasury notes;
a process of anticipating the next loan
which will materially lessen the
amount of new money that the fifth
loan will actually absorb. The definite
amount and the rate of the next loan
have not yet been determined, though
Secretary Glass announced that it will
be a short-term loan of varying dates
and rates. Some issues may be free
of taxation; others not: the secretary
deciding according to the exigencies of
the situatio
In this connection one thing should
be distinctly kept in mind by the bust
ness community: Our banks are al
ready carrying heavy burden of gov
eminent obligations through purchase
of treasury notes. They are also car
rying an enormous amount of govern
ment issues, estimated at nearly &c.
000,000,000, as collateral against loans.