The Washington times., 1920-03-31

business all IN the compass u '"'S
one month.
Cri.e. All Passed.
The farm loan crisis has pessed
without mishap. banks OF the middle
West reporting an enormous volume
OF liquidstion, but all smoothly ac-
complished. The railroads are run
ming with few bitches and with a
substantial Government guarantee TO
back them up. That the farmers got
their seed Is evidenced by many
smiling field.
The Treasury bulges with nearly
a billion in receipts from the income
and excess profits taxes and Secre-
tary OF the Treasury Houston has just
announced the success OF the March
issue OF Treasury certificates. There
has been no panic among banks
holding automobile paper, and the
spring building season has opened
auspiciously with the ring or ham
mers and the hum OF saws In every
suburb.
Coal production is reported by the
Geological Survey to be on high
md even level; the Presidents Indus
rial Conference has reported out a
new plan for settlement of labor dis
putes which promises well and the
irincipal labor controversies are In
stages OF negotiation, rather than In
he shape OF damaging strikes. Dur
ing the month, England has com
menced the shipment OF gold and for
eign exchange Is looking up with
certain benefits to be reflected In the
foreign trade.
Faced Difficulties Brsveiy.
Crisis like these are not spectacu-
Ior h,t Of intnnFtanra HAD
Ill the evil things forecast when the
month opened developed I'm as sinls-
,er a manner as they threatened.
tvnore suffering doubtless would have
'esulted in this country than was
.aused to Americans by the European
var. The threat to the industrial
md economic well-being of America
vas as intense on Msrch I as the
'hreat to Paris was on March 81. two
ears earlier, when the German
| armies were advancing In their last
.reat drive and the shells OF the
ong range Boche gun were railing
the Bois de Bologne.
And in as effective but less spec
.acular a manner, American business
faced the difficulty just as the ma
rines faced the Huns in the wheat
| 1eld at Chateau Thiery and in the
sois de Belleau.
April opens with a fair prospect
and American business feels that,
With the month OF March success
'ully passed it can look forward to a
new triumph with less foreboding.
certainly the experience of weather
ng the economic storms which ragged
| In March has fitted American busi-
ness to withstand even harsher ex-
gencies.
Hard Battle To Win.
II must not be thought that all the
problems which the sinister month
| raised solved themselves or were
waited to one side by the waving of
, wand. 1t took a hard battle to
| win through to solvcncy on April i.
The leader in the battle unquestion-
ably was the Federal Reserve Board
at Washington, commanding the bat
terry Of Federal reserve banks scat
tered at strategic points over the
country, firmly planted in the swift
est channels Of trade and commerce.
alert and ready at all times to exert
the greatest efforts where they were
most needed. A
The snipers in the battle. with
which the board had considerable
trouble, were the spectators of Wall
Street. But by careful and scientific
adjustment Of bank discount rates at
the proper times, the board kept this
influence at bay, leaving legitimate
business free from flank attacks and
efficient to throw its strength into
the increase Of production, the
agency chiefly needed o. to. bring the
country through.
That this period has passed without
serious financial difficulties Is due
largely to the conservative alertness
of the Federal Reserve Board and It's
banks. but full advantage cannot be
taken of the victory which has been
gained unless the nation maintains
a hiRh speed production OF all neces-
sary commodities.
Prices Soon to Drop.
Unuuestionably there is much
profiteering to plague the country, but
at bottom the law OF supply and de-
mand still is operative, and just as
soon as the workers of the country
will buckle down and produce goods
in quantities large enough so that
two or three persons will not be
Kidding against each other for every
article produced, prices Will tumble
like Hunpty Dumpty.
II is the earnest wish of the Fed
eral Reserve Board that the money OF
America be put to productive use. its
banks are ready to assist in the
financing Of the production and mar
,etinp of goods, but the board is just
as firmly established in, policy to
employ it's large powers to prevent
speculation, stock market gambling,
and such uses OF money. 1t regards
speculation as a waste OF capital as
much to be fought as the waste OF
goods.
The period passed has shown that
the Federal reserve system Is
tower of strength to which the coun- :
try can look for sure guidance ana
th,t the Federal reserve act Is as