Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-14
CONGRESS TO PUSH
AID OF INDUSTRIES
Early Relief of Agricultural
Depression Is Urged as
imperative.
BY n. o. MESSENGER.


For the next few weeks it is prob
able the attention of Congress, refiec-
| tive of interest manifested by the
country, will be attracted to possible
measures for the relief of acute con-
i ditions of distress prevailing in GER
tain agricultural and Industrial lines.
The Senate resolution directing the
War Finance Corporation and the
Federal Reserve Board TO take GER
tain action for the relief of the argi-
cultural depression will have the
right Of way in Congress. 1t may be
followed by proposals to enforce an
embargo on the importation of wool
and wheat.
| !. View Of Situation Optimistic.
The encouraging aspect of the pres
sent situation is the unanimous agree
ment among all the great captains Of
industry. heads OF large financial in
stitutions and economists generally
that the financial and Industrial con-
dftfon Of the United States is sound at
base: that there is no indication of a
panic; that affairs are on. the mend
and bound to improve. and that the
good sense Of the people will admon-
ish them to keep cool, proceed with
caution, and await the inevitabl
working out Of natural conditions
which. are responsive to natural
causes.
On this point the monthly circu-
lar of one of the largest banking
institutions in the country, an ac-
knowledged authority on trade and
money 1t hand today, says:
The manner in which the country
has borne the great shrinkage in
values and the comparatively few i'm
portant failures. has shown that the
business structure is essentially
sound. The banks have carried the
situation through the credit strain.
There will be plenty of credit for
level of prices.
"The business organization is in
working order and ready to resume
normal operations when conditions
are right. which will be when retail
prices, wages and Industrial costs
generally have come down to the
level reached by the basic raw prod
ucts"
Explains slump In Business.
The statement goes on to say that
the slump in business conditions has
demonstrated that the great nove-
ments in the business world. which
make good times or bad times, are
spontaneous and beyond control. They
are due to mass action and mass
psychology, it is contended. The
business Of the country, it is pointed
out. depends upon the purchases and
policies of tens Of millions Of indi-
viduals, and when they become gen.
orally possessed of a spirit of con-
| fidence and continue their planning
and spending, period OF prosperity
obtains. The difference between free
spending and careful economy by all
vast difference in the volume of trade
and the level of prices.
The war, it is explained. gave an
enormous butNunhealthful stimulus 70
industries and brought on the rise OF
wages and prices. Following the Waa
resulting from the war and the re-
lease Of demands that had been IN
restraint. A market in which demand
exceeds supply is called a sellers
market, but the prices upon many
commodities in 1919 and 1920 were G
bidding of dealers eager to supply
them"
Not All share in BENEFIT.
But In this great rise of prices. it is
explained. all did not share alike
Those whose incomes did not keep
pace with the rise Of prices were
obliged to curtail their purchases
port for them weakened until it has
become evident that confidence will
not be restored or prices stabilized
until a 'far-reaching. thorough read
justment OF costs and prices has been
reached"
ing for relief of the agricultural in
dustry find support to their efforts in
the statement o fthis financial author
ity that the farming population has
suffered q loss of purchasing power
amounting to somewhere between six
billion and eight billion dollars. at
compared with last year.
ut would be foolish for the people
engaged in other industries" the
statement continues, Ito think that
they can go on making and selling
goods as though this loss had not
Occurred, enjoying also the benefit OF
the reduction in farm products"
1If the Farmer Goes Broke"
That is the main contention of the
congressman engaged In the move
ment for special measures Of relief
for the farmers-that if the farmer
goes broke the manufacturing class
must suffer and the workingmen bear
their share OF the general depression
The basis of their hope for favor
able action is the frank recognition
by important financial interests OF
their contention and disposition to
lend sympathetic aid to reasonable
AHortS for relief