The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-11-30
GEORGE R. JAMES
BELIEVES BETTER
TIMES ARE AHEAD
Says War Finance Corpora
ton Will Be Revived and
This With Other influences
viii Bring Better Business.

That the war finance corporation
will be revived and that this revival,
along with other influences, will bring
about greatly improved financial and
commercial conditions after the turn
of the year is the very positive oplh-
ion of George r, James.
Mr.. James has been prominent IN
the work for the revival of the war
finance corporation ever since II was
suggested some time ago that the
workings of the corporation, could II
he revived, would go far toward en-
liyening present stagnant business
conditions. He is familiar with the
detailed workings of the corporation
from his association with government
war work as a member of the war IN
dustries board during the late war.
Mr.. James believes that the same
congress which UNANIMOUSLY Voteu W
continue the activity of the war IL
nance corporation during peace lAhleS
will vote to take away from the sec
retarv of the treasury the arbitrary
right to suspend the operation OF tne
corporation at his own sweet Will he
il encouraged in this belief by a teie-
gram from Senator K. d. Mchellar'
stating that enough senators are
D1edRed to vote for a revival OF the
corpOration to insure the passage OF
a resolution to that effect when IL
comes up before the senate durihs
the short term.
MIR. James expresses the belief that
the moral effect of the passage OF
such a resolution by both houses OF
congress will be felt immediately, TOT
fhe reason that the machinery or the
corporation is intact and the corpor-
alton will be ready to do business
within an hour after At is revived.
other Factors VIII Help.
Other factors, Mr.. James believes
will work for better commercial con-
ditions after the turn of the year:
The end of the calendar year VIII
end the income tax year for many IN
diyiduals and corporations ana WIN
this item out of the way there VIII
be more incentive to restore norman
and active business conditions tnah
exist at the moment.
furthermore, Mr.. James states,
there lis no surplus of stocks on the
,,narcantile shelves OF the country.
Merchants have not sold goods at the
same rate, perhaps, as they did last
wear. but at the same time sales nave
been In sufficient volume 20 render
II certain that merchants will not De
forced to carry big stocks over into
another year. Preparations must pe
made to meet the Demands or next
spring, and here Ia Where BIZ, James
believes considerable impetus TOT IN
creased business will maniIest IT.
self. -,
The cotton crop, he believes, VIII
begin to move around present low
values because mills will be con-
fronted with the necessity OF supply
ing the demands for next year ana
with the gradual liquidation OF the
present crop, better prices Will De
quoted. The workings of the war IL
nance corporation and the various
Edre act banks now being organized
throughout the country Will, he De-
iieves, increase the flow OF our com
Fnodities abroad and thus add to the
volume of business, which should
gradually approach normal.
Credits May Expand.
The matter OF fiscal, needs for an
other year with accompaniment OF
taxation and bond issues, Mr.. James
believes will bring about another
credit expansion which can not but
find a reflection in better business
and improved prices. Needs of the
government for another year have
nowhere been estimated at less than
$500, 900, 600 and most estimates run
half a billion above this figure. And
all this money will hardly come from
the collection of taxes. For be 1t re-
1nembered, that governments share
with the business interests of the
country the prosperity or poverty of
business conditions.
Failure to receive its needs from
tax collections, the government, MIR.
James believes will be forced to sell
bonds Under present market condi-
lions bonds may only be sold through
special arrangements with the banks,
such, for instance, as allowing pur-
chasing banks to borrow from the
federal reserve banks money on the
bonds at the same rate of interest as
paid by the bond. This would but
be another form of expansion of
credit which in turn would be re-
Elected in increased business.
The South is not broke" said Mr..
James. "and with the gradual liquida-
ton of the present cotton crop 1t
should be able to produce q crop next
year at a greater profit than any in
the past. with the exception of 1915,
when strict economy resulting from
the low price of 1914. produced crop
at the lowest cost, at least relatively,
in many years. Such economy next
year should leave the South in good
shape at the end Of the 1921 crop
wears