The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-29

to broaden after the December 81 set
Element shall have been provided for and
the shifting of funds with which to make
the large Treasury payments effected
| The country is doing business on a de-
fiation basis because, according to Brad
street compila tons, the commodity price
level has declined within nine months
to just about two-thirds the extent OF
the rise since the European war began
which is enabling the people to build up
a thrift fund large enough to provide
for many reconstruction loans which
must be marketed soon after the COM
pletion OF the January settlement. The
railroads must apply for vast sums IN
the spring, and the chances are that the
people will let them have what capital
they need because it is coming to be
recognized universally that the trans
portation industry is in a pretty secure
position as a consequence of the dement's
and safeguards provided by the present
railroad law
Afuer March 4.
MANY constructive developments are
looked for after the new Administration
shall have taken control and the new
Congress gets down to serious work
important amendments TO the Federal
Reserve act, as we'll as legislation con-
nected with the expansion of American
trade in foreign markets, will engage the
attention OF the people. The crops just
harvested may not reach the money
valuation represented by the preceding
harvest, although total production Will
break all records. But a vast amount
of new wealth will be added to the pre-
viously existing fund as soon as the
farmers shall have received payment for
what they have produced. Much financ-
ing remains to be done for the Industrial
corporation, and although various foreign
borrowers have offered attractive terms
I, o place loans in the United States, the
Indications are that no congestion Will
be permitted, as the banking fraternity
has lively recollection of the evils
growing out of the rich mems panic in
1903 But business generally is being
recognized on a basis of decreased op-
Grating costs. and the whole nation, al
most for the first time since the world
war began, has begun to think of its
everyday problems in terms of pre-war
finance. There are many things to be
done, and it may take considerable time
10 accomplish the financial sanitation
which must be brought about to make
ne country function properly and restore
the normal mode OF living and doing
business
There is nothing in the outlook to sug-
geSt runaway STOCK HlaFhetS nor iuI ious
up bidding of prices such as were seen
during the commotion in the war order
industrials But a basis for the resump-
ton of legitimate speculation later on
is being laid because the stock market is
selling ex-inhation as the defaton
process has progressed here further than
in any other quarter. The average man
is thinking more soberly than he did in
the days when blue sky and sunshine
dbscured every dark cloud there was on
The investment horizon. The country is
fast developing d safe trading basis and
the people will benefit from it in a
marked degree. There are still elements
Of danger in the South American situa-
ton as well as in European quarters,
but the outlook hereabouts. notwith-
standing the increase in commercial fail
ures, is brighter than it has been for
many months.