The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1920-12-29
BUSINESS HAS
PASSED CRISIS
TURN FOR BETTER in BUSINESS
SITUATION OF COUNTRY
HAS COME.

is over. A turn for the better in the
business situation of the country has
come. Government officials gener-
ally are glad to send New Years
message to the American people that
all danger of a collapse in the credit
system has passed, and that from now
on steady return to normal condi-
tions may be expected.
very bit of evidence gathered
here confirms the view of officials
that with the exception of individual
cases where bad management or i'm
prudent financing has caused some
concerns to hang by an eye-lash, the
entire business outlook is favorable.
The process of readjustment is not
over. Perhaps some of the most
painful changes will come when the
price of labor is gradually brought
down but in the business world, it
self, the bottom has been reached,
and the future is by no means as
dark as it was a month ago. Letters
received from bank officials in vari-
Gus parts of the country indicate that
the turn came in the last six or seven
days, and that the improvement is
substantial and sound.
The reports received on Christmas
buying indicate that the strike which
the consumer started several weeks
ago against the purchase of anything
except absolute necessities was brok-
en- by the Christmas spirit and that
most retailers will have cleared their
shelves pretty well by the end of this
year.
The danger, of course, in reducing
the cost of labor is always the pros
pect of strike. But in many cases
the employers would welcome the
chance to be rid of an overhead cost
on labor altogether for few weeks,
so the wise laboring man is consult
ing with the housewife and noticing
a decline in the prices of food and
clothing, will, it is believed here, be
ready to accept lower weekly wage,
rather than insist on a higher one and
run the risk of not getting anything
at all during the winter months. But
an abrupt change in labor prices is
not expected. Certain classes of la
Dor which have been paid at war
prices will have to come down. All
this may be stubbornly fought by the
labor organizations, but the alterna-
tive may be no work at all. Already
requests to accept cut has worked
out successfully in several lines of
business and while everybody wants
the other fellow to come down and
nobody wants to bear the brunt of
the reduction himself or herself some
reduction in labor costs os inevitable.
The business man who wisely made
his prices on basis of the average
cost for period of normal years is
the lucky individual nowadays, yet
few of them were able to do so unless
they sacrificed profits altogether
during war years and the number
who did that is very small.
Perhaps the most optimistic in
Washington are those who see in the
falling prices of building materials
the answer to the labor question.
High rent, 1t has been contended, has
been the backbone of every demand
for increases in wages. The shortage
in houses has been nationwide. Some
building materials are back to pre-
war prices. The building on gen.
eral scale will not be resumed until
labor comes down, too, for any one
wanting to build a house and sell it
several years hence for somewhere
near the original cost will not build
at war prices Of labor. II the pur-
chasing power of the dollar should
gradually increase the average work
man will not be justified in asking
for the retention of high wages but
the trouble will be to make the aver
age man accept that line Of reason
ing until the dollar actually does buy
as much as 1t used to-. The trouble
about the readjustment of economic
conditions is that things do not move
uniformly and naturally reductions
in labor cost will be resisted. In the
sense that a fall in labor prices is yet
to come. the painfulness Of the eco
nomic situation is not over but with
unemployment SO extensive the re.
sumption of large business opens aft.
er the first Of the year will tend to.
ward the relief Of those who are get
ting no wages at all and who believe
in the practical philosophy that some
kind of q job ie better than none.
The big fact Is that the financia
world which makes possible the con
tfnuance Of manufacturing operations
has passed through its crisis and tha
While buying will be conservative
the return to normal has at last be
gun on basis that has removed thu
wrinkles Of anxiety on the faces o.
goyernment officials and made then
feel that the nation has successful.
weathered the storm.