The Washington herald., 1920-11-23
DEPRESSION IN
BUSINESSOVER
Conditions Point to Solid
Foundation for Activity
During the New Year.
By b. C. FORBES.

The two major evils from which
the world has suffered have been,
first. the appalling destruction
wrought by the war, and, second, the
ruinous falling OF in the produc-
tivity of workmen. Most of our
other troubles-scarcity. excessive
prices, imitation, acute discomfort
shortage of homes, inadequate trans
portation. monetary stringency-
have sprung from these basic causes.
.uus, OI T.oubIe Passing.
1t is. therefore, OF supreme i'm
portance to note that the basic
causes Of our economic troubles are
passing
The period of destruction is over.
We have reached the period Of re-
construction.
What of labor's productivity? The
Transformation that Is taking place
in the attitude, the habits, the in
dustry of labor is a. development of
momentous importance-far more
than is popularity grasped. 1t out
weighs, when correctly appreciated.
a score and more of the happenings
which are spreading pessimism to-
day.
Let's see.
II, as IS morally certain, work
men continue to increase their ef-
forts until they get back TO pre-
war standards, the results will be
beyond computation. First, the high
cost of living-the fount of endless
trouble-will be brought down 10
reasonable levels. The need for
cutting wages will be lessened and
problem loaded with dynamite may
thus be handled without bringing on
an explosion of incalculable gravity.
Lower costs will strengthen Amer
ica's ability to compete successfully
in world markets against the reviv-
ing Industrial nations of Europe
consideration of very great mo-
ment.
Moreover, given industrious labor.
American capitalists will not hesi-
tate to embark upon fresh enter
prises on a gigantic scale. especially
as lower labor costs will mean lower
prices and cheaper money.
All this will in turn stimulate the
construction of the vast amount of
building which the country SO very
direly needs; will encourage too
long delayed railway (and terminall
| improvements and extensions. viii
give utility companies new heart 10
provide overdue additional facilities
Funds Depend on Labor.
Furthermore, when we have la
bor fupctioning satisfactorily and
the money market back TO healthy
state we will be in a position TO
supply funds for the development
Of the innumerable opportunities
beckoning to US from other parts OF
! the globe, and we will also be able
to furnish European countries with
the credits necessary to enable them
to buy enormous quantities OF COM
modities, materials and merchandise
from us.
Then, It is an undisputed fact that
since labor began to realize that the
war-born tamboree OF soaring wages
and unrestrained extravagance was
over and that the world was headed
toward less rip-snorting times, the
tendency to curtail useless expendl-
lures and to save money has become
distinctly more pronounced. MOI
only are our total bank resources
(well over. s50.000. 600, ,0o0)the great
est in our history, but our savings
have reached a new mark and are
now increasing at a notable rate.
The filling UP Of our reservoirs
Of new capital thus in process is
guaranty that enterprise will be
revived on a large scale by the
brainy, aggressive, forward-lookins
leaders who abound in this country
more than in any other.
That's all very well. But think
of what's happening right now
/ Where are we going to land before
all these beautiful things come to
lpass?"
That probably is the question ae-
itating the mind of the business
reader whose affairs are disturbing
both his waking and sleeping hours
Frankly. there is little prospecto Of