Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1920-11-25
THE SLUMP

y
There Is, we are told, q slump
in business. Prices have fallen and
are falling; the numbers OF the un-
employed are increasing; and there
! is talk in some quarters of hard
times. Therefore some of our cap
tious friends OF what is presently to
be the Opposition, seeking solace for
their election smars, exploit these
things to the nth degree, and de-
/ mand to know il we regard them as
satisfactory results of the republic
/ can victory, and IL, in case they had
/ followed a democratic victory, we
would not have charged them TO
/ that party's account. to which we
cheerfully answer, both yes and no.
! We have never been inclined to
attribute, as fully as some have done
great economic changes to the par
I tisan results of elections, unless the
elections in question turned chiefly
upon great economic issues. For
/ example, IL the tariff were the issue,
and the result of the election meant
reversal of policy from protection
to free trade or vice versa, we
should expect important economic
effects. But in the late campaign
and election there was no such DOM
| inant issue, and therefore we do not
consider all the changes which are
now occurring or are likely to occur
I in any way to the result on Novem-
4 Der 2.
In one respect, indeed, they may
I be thus attributed: namely, the fall
I in prices. That, which is surely not
/ to be considered an unwelcome or
undesirable change, may be in a
1 measure and perhaps in large
measure due to the republican vic
/ tory. That is because the coming OF
that party into complete control of
I the government is recognized to
mean a change in fiscal policy which
/ will make an end Of the processes Of
! initiation which have unwisely pre-
vailed under the present administra-
I ton, and which will lead directly to
/ liquidation and to a return to nor
NAL conditions. Anticipating that,
| no doubt many business concerns
are making haste to get in on the
/ ground floor" by being the foremost
to get back to rational standards.
/ To that extent we are quite willing
| to regard the slump" as salts
| factory result of the election.
] Beyond that, however, thought
| full men must realize that the pres
ent processes in business have little
or nothing ia do with the election,
| but are a part OF the natural and in
evitable progress OF events follow
ing the cataclysm of the great war.
There must be a reaction from the
Initiation and, 1t is unpleasant to
add, the profligacy, of war times.
That reaction will doubtless be
marked with a fall Of prices, with
lower wages and with decreased
demand for some forms of labor, and
with an apparent decline of pros
/ type. It would have come. soon or
late. just the same il the democrats
had won and IL Mr.. Cox had contin-
ued the Wilson policy. We have
only to recall what happened at the
close of the Civil War. There was
great initiation, with high prices
and prosperity, for few years. In
1872 Grant was reelected and a
continuation OF his policy was as
sured. Yet there followed one OF
the worst financial crises and bus
mess depressions in all our history.
That was not because OF his re-elec-
ton, but in spite OF it and because
4 of Other influences.
SO It is at the present time;
though we have no idea that the
slump" is going TO be anything like
as serious as some are predicting.
The decline is chiefly seen in quar-
tiers where initiation was most mark
ed. Many employees are being thrown
out in some quarters, but there Is
an ample demand for them in 9TH
ers. There is business depression in
some cases. but ON the whole there
is and will continue to be prosperity
which will be all the more whole
some and substantial because we
shall have got rid of the specious
and spurious prosperity of wartime
profiteering and initiation.