Arizona republican., 1920-11-24
Financial Review
By ERIC kO5BE Of Blyth, Witter & Go.

Face the Situation
 There has been 6 cry for many months for lower prices. and now that the wish has been granted the result is not greeted with the wild rejoicing that would naturally be expected under the circumstances. Why? Because. as happens in the large majority of cases, a result when not carefully studied and it's consequences properly weighed, will not be nearly so desir- able as you are led to believe by your more or less snap judgment. Not that we mean to say that in the present case lower prices are not desirable and necessary, but we do say that the con- | sequences of the reduction downward were not fully realized or appreciated and that, that now they are making their appearance, people are inclined to evade the issue and cry disaster. We will look at both sides of the situa- ticn.
 The unfavorable side shows unset tied trade and industry, a rapid fall in the prices of important commodities, a poor market for grain and cotton
 even at prevailing low prices, high | money rates, and a large increase in business failures.
 The favorable side shows a marked l betterment in transportation condi-
 tions, which is of the utmost impor-
 tance, indicated large final crop yields an influx of immigrants, increasing confidence of investors in good security
 issues, increase in confidence of tho
 country as a whole as result of thu
 election, and the working of our finan-
 cial system, which has successful,
 handled all financial problems so ia, in such 8 business like way as to re
 assure us as to the future. Recent re
 ports of the production of bituminou coal are very encouraging.
 In weighing the two sides of tn , question, it would seem that we hay every reason to go forwatd with tn l utmost confidence if at the same tim | with the utmost prudence. There ar problems which must be met an 5 solved. The unsettled conditions o
 trade and industry will feel the effec 7 of the restored confidence. This wi : of course take time, but the result f inevitable The fall in commodit : prices and wholesale prices has nc been paralleled by the retail trade, bu : prices have reached such a point tha f buying will be stimulated, and the ef !. forts being put forth to develop a prac f tical European market should do muc :. to aid the situation. High money rate O seem due to decline around the frs Q of the year, as the release of none
 now used in crop financing, which wi
 be completed about the middle of De f ccmber, should have a decidedly low fl ering effect. The increase of bushes 1, failures is a natural consequence ths ! must be faced. but a reassuring aspe' , is that although the number of failure d is large and the amount involved show = a large increase most of the companit <, are of the mushroom varieties whic 4 sprang up during the war emergenc S As an example, during this period thel ', were PTS tire companies incorporate 7 in the state of Ohio alone. Natural .e the large majority were not in a pos
 ton to face the present stagnation
 the automobile industry. but the
 elimination, although temporarily - hard blow at the tire industry throus ls flooding the market with liquidat' S' stocks. will react in the end in flaw of the larger and better establish'
 companies through the elimination =, competition.