The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1920-12-02
UNITED STATES IS NOT
TO BE sold SHORT

uCtlldlOIJ VI Cdidliiity AON tAAS III
general. and at this time In particu-
lar, TO quote Charles II. Sabin, presi-
dent of the Guaranty Trust Company
of New York. This gentleman, well
known, of course, in the world of
finance, appears. to be making Tor
himself an enviable reputation in the
way of timely, sensible and patriotic
utterances regarding the reconstruc-
ton period of the United States, which
is, right now, at its acute stage.
Mr.. Sabin's latest letter on this
subject, written for the trade publ
cation of his company, the Guaranty
News, covers the ground so thor
oughly and well that it is here repro
duced, because it expresses the views
of this newspaper, and because it is
written by a man of undisputed stand
ing in the world of business. A care
full perusal of Mr.. Sabin's letter can
not fail to be of value to citizens. He
says:
There is nothing mysterious or un-
expected about the present condition
in either commodity or security mar
kets. For months ii has been certain
and 1t has been repeatedly so stated
by students of the situation, tina
there must be a liquidation of securi
ties, commodities, and labor, before
this country can fully from
effects of the war and be restored to
anything like a normal business basis,
1t was inevitable that the processes
of readjustment should be painful in
many respects and in many instances
but that they were and are inevitable
was a matter of common knowledge
among all who seek to study these
problems apart from immediate self
interest. The regrettable thing is that
as commodity and security prices
reached points far above their real
value in the boom period, so they are
today falling to points far below their
real value. Necessarily, liquidation
is proceeding after the manner an
ticipated, on the whole; but there yet
several steps to be taken.
Perhaps the most important OF
these is for retail merchants to real
ize that they, too, must meet the in
evitable economic trend and adjust
their prices to meet the new condi-
tions. Only in that II a. the
situation be stabilized and frozen
thawed out. l know this is
a pleasant message; but l am
firmly convinced that the sooner such
a policy is pursued, the less costly
and painful it will be to all con
The process of def1ation must in
clude all elements in the body eco
nomic soone OF later, and there can
be no escape from the memorable law
which directs it. Dodging the facts
attempting to postpone the inevi-
table will not bring immunity to any
one, whether his interest lie in pro-
duction or distribution. capital or
labor.
The unfortunate effect in such a
situation is always that many inno-
cent parties are made to suffer be-
cause of ignorance and misunder-
standings, and also through the
spread of false and malicious rumors
which such conditions always inspire,
with a resulting loss OF confidence
and panic sales.
There Is so much in the present
situation to inspire confidence and
hope for the future that it is little
short of criminal for anyone to
paint the picture at this time so
blackly, through either ignorance or
intent, that these vital facts are OBJ
scured. To cite a few pertinent facts:
This country will harvest this year
one of the largest crops in its history.
Its transportation congestion has
been relieved and its railroad systems
are for the first time in a decade on
sound financial and operating bases.
We have passed through a national
election and are assured of four years
of sane administration of public af-
fairs.
Our banking system has withstood
the greatest credit strain in it's his
tory and is on a sound and workable
basis.
The accumulated surplus of five
years of splendid prosperity is stored
in many ways for our continued use.
The markets of the world demand
u products and a great mercantile
marine is prepared to transport them,
This country has not been over
built or overextended in any of its
underlying activities. and faces no
program of readjustment along these
lines such as usually precipitates
panic conditions.
We are in the soundest financial,
industrial and political condition of
any important nation In the world.
These are the simple fundamental
facts of our business situation. and
to consider the present reaction as
anything but a temporary setback
from the destruction. imitation. ex-
travagance. and unsound economic
conditions precipitated by the war is
simply not to reckon with the truth.
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