Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-12-27
OUR NATIONAL SITUATION.


A tour of considerable portion of the state OF
New Mexico furnishes convincing proof that bust
ness conditions are not satisfactory. Wool has MOI
market cattle bring almost nothing, and in Union
county and in parts of Mora and Quay, the people
are finding it cheaper to burn corn than to buy coal
The banks generally cutting their loans to the
quick and below Some Of them are cutting to
the bone
But what of the New Year prospects?
Except in certain lines, there is really no eX-
ouse for the pessimsm which prevails in New
Mexico and throughout the United States 1t is
largely a matter of psychology, state of mind
People think times are hard, therefore they are
hard II they continue to think strongly enough
that times are going to be harder, they will trans
late their think into fact
But there are some facts, relating to conditions
in this country generally which are worth consld-
ering Before the European war began, this coun-
trv owned abroad in bonds, stocks and other forms
Of Indebtedness not than eight billion dollars
That debt has been cancelled, and the foreign
peoples owe ten billion dollars to this government
and about five billions to banks and exporters
The importance of this financial change can
hardly be estimated. 1t means that where former
ly not less than five hundred million dollars was
going to Europe annually to pay interest on bonds
and dividends stocks, now about eight nun
dred million dollars annually is due to the peo-
pie of the United States from abroad. The interest
on the bonds Of the allies and other foreign coun-
tries funds advanced by this government during
the war and since is not being paid but the interest
on bonds sold by American bankers, except those OF
Germany and Austria, and about three hundred
million dollars of Russian bonds, is being paid
regularly.
prior to 1914, the balance of trade in favor
never was more than six hundred million dollars
All of that sum taken up in the payment OF
interest and dividends owed abroad and in paying
the expenses of American travel. In most years the
actual balance against us, though the apparent
balance in our favor,
But the aggregate of the balance of trade in
our favor since 1914 is about fourteen billion dol
lars. the balance for this year will show not fan
from two and a half billions
The interest on nearly twenty billion dollars il
Liberty and Victory bonds is being paid regularly
and less than four billion dollars of those loans
have been concentrated in the hands of bankers
and men of great wealth. There is yet general dis
trbution amounting to than sixteen billion
dollars Nothing approXimatng this popular owner
ship of interest bearing securities before wal
held by the American people.
The estimated wealth of the United States tel
years ago was $125, goo, 900 O0O. Now esti
mated wealth is four times that sum, or 100000,
100000 The per capita wealth ten years ago, wal
s1360. Now it is $4,000.
Gold in circulation ten years ago amounted tt
Just what all this is understood bette
when know that the increase in population dur
ing the past ten years less than fifteen mil
4 lions.
The deposits in savings banks have grown 5
per cent in ten years, while the deposits in nationa
banks have grown from an aggregate of $5,2S7,
5 2I6,312, TO $17155,421, 600.
But let us take the farm products values of te
years ago and compare them with the values
1920. In 1910, the value of the farm products ha
an estimated value of $S,92G, GOO 900. The est
mated value for this year is $16,025.0000 600.
All of these figures made year-end vau
ations or actual figures of government statstician
The demand for silk shirts costing from $40 t
s25 is a thing of the past; also silk stockings a
4 $3.50 pair are longer popular. Most people ca
now be quite well satisfied with shoes which COS
half of SIS, and men are now content with ha
a that costs considerably less than $40, and they al
no longer hunting for suits of clothes that COS
from SIS to 1925.
For cattle men, wool men and merchants, Their
Is a period of reimbursement, well as for II
manufacturer, and the farmer Cattle men borrowe
when cattle on the range were worth an averag
y OF $50 and when the federal reserve banks woul
discount their paper up to so per cent. This NEAR
n loan of $4S a head These same cattle now al
selling for from $40 to $50 head. The banks ha
TO curtail.
Wool growers found themselves in similar {
& worse condition The merchant with stock
goods .on his hands may not only see all II
prospects of profit vanish. but he may see ms cap