Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1920-11-25
LET THERE BE CAUTION

During the whole period of indus
trial and general financial depression
between 1907 and 1914 we made pEac-
ticaIy no extension of railroads. We
did but little building OF dwellings or
business houses as com pared with our
growing population, and from 1914
to the end of the war the nations ac-
tivity was conferred eTAireIy upon war
work In that period railroad ex-
pansion was practically dead We
were wearing out the rolling stock au<1
the road bed and for years to come
unless business interests are to be
halted, we must spend vast sums, run
ming far into the billions, for the bet
terment of all railroads, the increase
of rolling stock and the expansion of
railroad tracks Thus, in its broadest
sense, we may say that the entire
country had for IS years been with
out normal poise or the normal con-
ditions on which could be based
broad, progressive construction work
We apparently were facing a long
period of industrial and agricultural
stagnation when the European war
changed the whole world. Within a
few months after the opening battle
the allies began enormous purchases
of foodstuffs and munitions They
poured el1t their accumulated wealth
of the ages in buying from us at
enormous profits to American manu-
facturers, but this pros perity was cen
tered mainly in certain branches of
iron and steel rlunition making and
kindred interests It created a fever
ish prosperity, with business men al
ways having before them some uncer-
tainty as to how long it would last.
When we entered the war this ma
ton Immediately began a period of
still more fererish activity in pouring
out billions for the struction of
nnunitin plants, the building of ships
and the production of war supplies Of
all kinds. Great was the momentum
| created in almost every avenue OF
business life. Higher wages than we
had ever known brought about a
scramble for the purchase of Injuries.
| This widespread activity and the in
fation connected with the placing Of
our bonds, stimulate by European
| demand, forced almost unprecedented
prices for all farm products.
Twelve months ago there was
Astounding prosperity turnout the land,
farmers getting high prices, 1aborers
high wages, manufacturers earning
| large profits, and outl of all of this
came an enormous income from ex-
| cess profit taxes to aid the federal
| treasury. Now it is being charged in
some quarters that the Federal Re
| serve banks thru systematic curtail-
nent of credits have killed this pros
perity a1d an early attempt to amend
the federal reserve law may be ex-
pected-
This law has functioned SO admir-
ably during the war and since that
efforts to charge it should be under
taken with great caution. The rate
at which the country was travelling a
| year ago if it had been maintained
would certainly have resulted in q
financial crash, unless past history is
misleading.
While falling prices and the letting
down of industry resulting from the
curtailment of credit by the banks
may work many hardships and fnan-
cia1 losses it may be that these results
are preferable to sudden and violent
collapse of values such as the coun-
try has experienced in the past. One
of the purposes of the federal reservt
| law was to prevent panies and i
, probably has done that very thing
: From Topeka Stated ourna1.