The midland journal. (Rising Sun, Md.) 1885-1947, 1920-12-10
Retrospection


splendid opportunity for retrospection.
AS we look back upon the year that
has been lived through, can we really
say that there is nothing to be thank
full for, or are we not rather forced to
say that there is much for which we
can be truly thankful. Health, home,
dear ones and friends gathered around
our firesides are some of the blessings
which kind Providence has vouch-
safed to us, even though our minds
have at times been racked with the
perplexing questions of the day.
A country brought through the chaos
of reconstruction and led out into
paths which lead to better things is
a blessing which deservs our gratitude
A guiding power in the directing of the
financial matters of our land so able
and so far seeing as to be able to avert
what must have been, without that
guidance, panic far worse than that
of 1907, is something for which to be
thankful, and finally this good old
u. S. A. itself with all it's vast store
house of resources, it's tremendous
crops, it's ability to shake off every
hindrance to it's growth and progress,
its proud, well balanced method of
handling entangling questions, its re-
awakening to the call of industry and
achievement for future supremacy
truly our hearts leap with thanksgiv-
ing when we realize what it means to
be citizen of such nation.
Let us then look back upon the year
as an experience in which we were
schooled, in order that whatever may
confront us in the future, we shall
have this years example as an assur-
ance of the ability of our land to cope
with whatever it is called upon to
meet.
AS to matters financial and the stock
market in particular, permit us to
L.
is editor and publisher of the Boston
News Bureau" and noted as a writer
on finance and economics. In an inter-
view given "The Boston Sunday Her
ald' few days ago, he made among
others, the following statements:
1--WE are laying the foundations for
a business boom. Very few people
would have the audacity to tell you
that, but l cannot see it otherwise"
Asked whether that was the mean
ing of falling prices prices in Wall
Street, high money rates, factories
closing and wage reductions, he re-.
piled:
Precisely, and that is it's precise
meaning. The stock market always
liquidation should be nearly over.
Wall Street loans are now down to
less than one billion and many houses
are carrying only a third of a quarter
of their normal liabilities. There is
a steady flow of sound securities out
of Wall Street into investment boxes
and no business man living can re-
member when he paid as high for
money or found securities paying so
high a rate of investment return as
now"
''This means that the scales have
got to turn. Capital is only another
form of labor. 1t usually works very
cheaply and by it's service, labor gets
it's employment. But when the rate
gets too high, it can no longer employ
labor, either in construction of the pro-
duction of luxuries or articles abso-
lutely necessary"
when rate of capital is too high,
securities fall, goods fall; indeed,
everything that enteres into the cost
of living falls until Indebtedness is
liquidated down to a point where
money begins to accumulate. This is
the whole round of liquidation and it
is accentuated in undeveloped copn-
tries of large natural resources calling
for labor and capital Countries like
France and Great Britain, that have
no new soil to turn up or new mines
to open have steady supply of both
capital and labor and are not subject
to such fluctuations as we see in Amer
ica."
"But in the United States we drive
ahead until we have used up all the
labor and capital, and money cannot
get around fast enough to meet the
Saturday night pay roll. Then things
begin to tumble as commodities bid
for money and offer more for dollar"
1.-THE first bid is in the security mar
kets. Business men sell their bonds
and reserve securities and then tax
their credit to the limit to keep labor
employed and the factories going
Money mounts still higher and securi
%;aS continue IN fall This takes place