The Columbia evening Missourian. [volume] (Columbia, Mo.) 1920-1923, 1921-12-03
U. S. BUSINESS
ON UP GRADE
Russell Richards Is Optimistic
After Study Of Economic
Conditions.

Business conditions in the United States
are soundcr today than they have been
at any time during the past eighteen
months and arc on the up grade" said
/. Russell L. Richards, manager Of the ser
vice department and assistant cashier oil
the Bank Of Hawaii, Ltd.
Mr.. Richards. who is a graduate OF
the School Of Journalism. has just re-
turned from the Eas, where he made an
exhaustive study Of business conditions
there for his firm.
According to Richards, the majority
Of large corporations in this country have
liquidatcd, accepted their losses, and are
now organized on sound basis adapted
to the new business conditions.
"The refusal Of some firms. however, 10
liquidaie their obligations by disposing
Of their stock al the prevailing low prices
will probably result in number Of sharp
failures after the first Of the year l922," /"
added Richards, "and some further liqui.
dstion is TO be expected. The country
has gone through the wors, Of its finan-
ciaI depression and is slowly and stead
lily getting back TO normal.
"The influence of the Disarmament
Conference on business conditions in the
United States and the world is expected
10 be far reaching. In the first place it
will serve TO relieve the psychological ten
sion which is prevalent in all Of the
markets Of the world due to the fact that
people do not know what 10 expect. An
assurance that further warfare will not
be contemplated in the near future will
result in an immediate relaxation Of this
tension.
A second result will be the reduction
Of taxation in all Of the countries max
ing substantial reduction in armament.
This will help to build up foreign trade
and TO establish firmer and stronger
raie Of exchange between all countries.
At present il is remembered that Eng
lsh, French, Italian, and other foreign
money rates are very low and unstable
which works a serious hardship on for
eign firms buying goods from America.
.'Thc United States, through the re-
duction Of taxation. can and should
reduce her tariff barriers so that Euro
pean merchants can compete on equal
Terms with United States merchants. The
sale Of goods to the United States is the
only method open to Europe to pay her
war debts to this country.
'The present trade situation is one
sided exchange situation between the
United States and Europe in which the
United States furnishes the goods and
impoverished Europe has no trade bal
ance, in goods. money or credit to buy
them with. The result is that the ex-
change value Of the money Of France,
England, Germany and Italy is greatly de-
preciaied and the value Of United States
money is al premium. This condition
is not normal and is moi conducive to the
liquidation by European countries Of
debts TO the government and to individ-
uals in The United States. nor to pros.
porous foreign trade relations.
Europe must have the opportunity to
be able 10 sell goods TO the United States
and thus accumulate credit balance in
United States banks which can be used
to pay European debts and in return buy
needed products from the United States.
Until the exchange rates on foreign
money get back to nearly normal. no sat.
isfactory foreign trade can be established
between the United States and European
and Asiatic countries.
Within the United States. the War Fl
lance Corporation is doing great deal
toward relieving the frozen condition Of
credit by loaning money to business
firms and enabling them to pay off their
loans TO the banks and these loans are
carried instead by the War Finance Cor
pora,ion."