The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1921-01-07
VIEWS FUTURE
WITH ASSURANCE
Says Key to The \Situation Lies.
In Hands of Retailer
and Farmer
BY MARSHALL H. JONES
Asst. Cashier First & Citizens National
Bank

The future can now be viewed
with reasonable assurance that
the crest of the present wave of
liquidation has been passed.
When demand for consumption
once more asserts itself, money
and goods will again flow in nor
NAL channels and the new foun-
dation of more normal values will
give rise to a greater prosperity.
The key to the business situation is
credit and the key to the credit situa-
ton is in the hands of the retailer and
the farmer.
The process of reaching normal val-
ues, following war time initiation. is be-
ing hindered by the retailer who has alb
sorbed as much credit as possible, and
reduced his prices as little IS possible
! in order to liquidate his stock with as
little loss as possible. This however,
can continue but little longer, since the
wholesaler has pocketed his loss and
the retailer must get in position to COM
pete with those retailers who have clear
ed their shelves.
The basis of new wealth is the pro-
ducts of the soil. When the buying
power of the farmer is curtailed from
forty to sixty per cent the result must
be general sitting of business. AL
shoueI these crops are bountiftrtt zthes
potential demand is great throughout
the world and there are no economic
Jaws which can long keep them below
cost of production. Our judgment is
that many of these products got caught
n the price tumble and tumbled too
ed and, the proper function of banking
facilities will lend every possible en-
couragement.
When movement of farm products and
stocks on retail shelves enables vast
quantities of paper held in banks to
De taken up, the tendency will be to
restore the normal flow of funds. We
ought to feel the effects of this process
as we enter the New Year, and espec
tally as we approach the new life and
new plans of spring and recovery of
normal trade and confidence should be
practically accomplished when a new
crop is ready for market.
Bonds. securities and perhaps cotton
futures have felt the effect of .yearend
selling to establish income tax losses,
but this will likely be temporary
The late Col. Roosevelt said that
anyone that attempts to be 'bear" on
America will go broke. In this connec-
ton a few of our abundant assets of
prosnerity are significant by way of
comparison at this period of readjust
ment:
The United States After The Civil War
1. Debtor nation. -
.. Borrowed heavily from Europe.
3, Paper currency at discount -
not on a gold basis-gold at a
large premium.
European currency at a premium
dollar at a discount the world
over.
= Inadequate banking system.
e Foreign trade small-Imports ex-
|. ceed exports.
Z Decline of merchant marine.
& War left United States devastat-
ed and impoverished.
| O. High prices and high wages pre-
vailed in this country only.
10. Took fifteen years for prices to
decline fifty per cent.
The IInited States After The World War
1. Creditor nation.
| . Europe owes United States $l4,-
100000, 100000.
limited States has onethird OF
worlds gold.
! 4 European currency at a discount
! dollar at premium the world
over.
| : Best banking system on earth.
/ 6 Foreign trade large. Exports ex-
+ ceed imports by three billion IL
/ 1919.
/ I Large merchant marine developed
! g War world wide-no part of the
! United States destroyed.
q. High prices and wages prevail al
! over the world.
10. Wholesale prices are on down
/ ward trend.