Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-12-02
DAVID A. LONGAcRE
On Credit pefation and susInes

TN SPITE Of the fact that the country is
J. facing n difficult situation as the result
of credit defation and that the period of
adjustment Is proving hard one for many.
the ultimate outlook Is good, In the opinion
of Daniel A. Longacre. secretary of the
Philadelphia Association Of Credit Men.
Within year business should be at nor
NAL asserts Mr.. Longacre, and eventually
this country should be in the finest, position
Of any country in the world to do business.
AS it is. he holds, there will be big i'm
provement within the next few months.
''As it is now said Mr.. Longacre. "the
question seems to be how shall we find
market for our goods? For instance.
have known of Middle West farmers trying
to sell corn at forty FIVE cents bushel,
ton men are losing on an average OF hye
South the slogan has become. Buy and pay
Kansas Is Grain Poor"
"Kansas has an enormous crop of last
years wheat and n bumper crop this year,
and the price Is up, but yet they are grain
poor. We don't need it any longer, and the
real market, are held back by the low ex-
change rate.
"Yet we need their business and they arc
the only logical market The problem is how
to get them to take our products. To me 1t
seems that, theoretically at least. the best
is to what extent will our financial and
business men be moved by a vision of the
future and altruistic motives? Cuba's mora
torium and nn unexplained slowness of bust
ness with South America adds to the diff
Guilty of the situation.
"The attitude of many seems to be to hold
goods rather than trust to uncertain pay
ments. Just how that situation Is going to
be worked out don't exactly know.
Failing Market n Problem.
'It Is a more difficult problem to adjust
business conditions on falling market than
on rising one. On the latter comparatively
small capital goes out, but on the former the
chances are necessarily longer.
IT look, however, for a cheerful condition
OF business in the spring. In the meantime,
the next three months must furnish what the
weather man might describe as a temporary
low area
to see an improvement in business reflected
In the stock market by the turn Of the year.
BY April believe business should be good,
and fully expect to see it back to normal
within year.
business men as n rule have been most
constructive and helpful in the present sit
uation. They all are trying to keep things
going. The bankers and the big business
men, much more than 10 generally known,
have been quietly at work tiding the smaller
men over by liberal extensions Of credit until
the present crisis shall have passed. Exten-
sions of credit running as high as eighteen
months are no uncommon thing.
Thinks Solution Near
"It seems to me that things are going to
work out something like this: Before the
present depression the mills had two orders
for every pound of stuff in their possession
AS these orders fell off they, of course re-
duced their forces, and some Of them shut
down. But others made a great deal Of
money during the rush period.
"They had plenty Of money and they did
need the goods. They still have n trade, and
this trade demands this, that and the other
Lind of material. So they are forced to have
a variety of goods on their shelves to meet
the demand, and in doing that they must
accumulate u considerable stock SO l look
to this type of man to be the starting point
In getting the demand back to normal. In
fact, many manufacturers are not making
goods today for sale, but for stock, and thus
they arc keeping things going.
Still Make Good Bargains
"Another factor that cannot help but haye
favorable reaction lies IN the fact that
many manufacturers and spnners are buying
raw material favorably. Naturally, having
made a good bargain, they turn 1t to account
| and use their material. This also tends TO
| keep things going.
"Whie many men are losing heavily by
| the present readjustment seeing their wealth
| disappear before their very eyes and unable
| TO help themselvcs-in fact, in some cases to
| find out where it is gOing-there are Others
| who are much better off.
! In fact, believe there are about az many