Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-03-18

hAO R2TIh IN hEAF RAYn0 Rv
and !. ~ Mrsr AZ .oiosa S'
In hia, sddress a :ssack ia sanity.s
NJ TraSne .ai3 IN mart.
.:rha vyortd shoiid have rottAnsAovn
"a tina task Of re-egtablishine things
ana renairinel fhA dArnaNe az the Great
war when the fiehtfnR was over. hut
fnstaa ~ dnin~ a precinitated ITSELF
into one "a the most extraya9ant
neriodnIof All history. nout Of which.
there III no outlet but through serious
dfstress. 5a5
a...varv n.t;,r. ~ theor,.t. ant,cina.ed
II 49,. n.. w. ths rrr;s-l
.o"e ~ pt4s = - nrod,,rtior
r.cs: NJ NE ~ ass.sa "a ~ssh'4hs
,muu,I m1ss ~. 1919 Cav rrnS,ar,inn
. Im..1M ...,S =. ~ ncroa Ip.x~-snS IN
u = ss,.s .s.te ~r..vnntea
" !. g., ~. ti,. snnnnmie thanrv
n,,,,;un IA .nac,,is+ion ~ rahid
: s.. I.nt nnnSstiIn. - fsvar
haat and Ia nsnnSs far .yav fror h
nsS,a.n -, "a seve rnnorn~
ANA o"0 $40 UN~
''SiIk Shirt Period.
"In 1916 and 1917 the profits Of the
tion kent industrfes nj their full ca
nacitv. labor was efficient and the cost
~ Iahor ner INIT Of production was ex-
ceeded nv the nronts. The period Of
turmoil which we have sometimes
designated A the .tsflk shirt period"
and has been called by Others CRAZY
days.' blinded business to the change
that was eoine on day BY day IN the
making Of real profits. Production
really lowered, especially in essentials.
prices continually mounted, labor costs
advanced by leaps and bounds until At
a dizzy height in the Spring Of 1920
commodities stood at a peak Of 272
and labor costs at a peak OF 30O-that
u, eaen manutacture arttcle was Dur.
that = carr;ad N ta1s Tn 1o1a ths
vai,,e addaa nv yn;rin1 acknowledgements
rs;iwav snd, nnhlic NIFTY st,nn.
was ,,sed largely in the navment ~ 10.
hor and~taxes. these two items took
20 nor cent ~ tho added vainc A. conN
tr;h,,tion.' Aftar dednctfnS rtern.t
and iyidcnds less har Z nes. cant was
"a s.ed tn canitsi 81 v;nrs Tha .mn,
p b SSH ~ eycesdad s' IN. ht,,,on in Ho,, sum IN
to+aI c]a,,it., o. y4n 30 ~ cort.as
c%ornorations n 1s1S and 1a,a wsre
omn,vhat less +han thairs "a nita, ..r
'inss OF 1a1e, This nerioh 81 ins.Xt.v
Which M ara varv m,,rr ashamed -
now. led to -serious ana fnndamsntai
e,rors Nv the n.t ion.. h,Iz,nes. a
h failinv 70 recornixesth dirnintsh''
ing nrofits and that tho natural and ~
an Unnatural situation vnHid ~ a..
nression ~ some Kind or othar-nrS-
ceeded to make commitments, to con-
vert liquid capital into fixed assets
which in 1920 exceeded largely the
capital savings tof 1919. This error
o only, subjects. the enterprises to
many hnconveniences in meeting the
quarterly taxation payments. but
nopnAaStnk tod kho pSliA~ RAf nw~S;& -.
capital purposes.
a r..
Crou.C stnu% aqua +.
Credit is not capital. The real
purpose OF the bank is to supply credit
FUNDS n not capital. Making credit
DO the work of capital has produced
throughout the nation a large sum in
frozen assets and a slowness In the
OF. loans. Counting to-
getnfr n sum OF frozen assets with
the sum OF frozen credits abroad. we
q large liability OF our banks
ana the need OF q thawingt process
further danger to the situation. The
retreat OF the BUYERS from the market
producing thereby q buyers strike
slowed Town h wheels of industry.
LED to q more rapid decline in the
prices o. some commodities than was
safe or comfortable and ushered in the
oepression with which we are now
c~ontendtns.
Back to sanity is the best
We can give the nation. Think
straight and think hard is U appeal
to the business men Of the nation,
There was never such a great need for
1t as just now. Holding the nroner
attitude. understanding fundamentals
as we should. we cannot nut nerc4ive
that the depression reflects any change
in our fundamental conditions or in
me real rlches OF the nation. The
present depression was brought on
spleiy py u own errors and tnsane
Granting q soundness in
fundamentals which must be gDanted,
we point tosthe Spring of 1920 as the
real danger point OF the situation; and
as we wereNable to pass that danger
point through the good sraces and
wonderful powers Of the Federal Re-
serve system, there seems nothing OF
great1uanger confronting US aor any
thing whatsoever thai should cause
alarm or give us the slightest fear.
Sanity as expressed in diligence, pa
thence and confidence is what we need
as a corrective that will bring us back
once again to prosperity. The hurt to
business was very deep and it cannot,
III fact it should not be repaired too
quickly. The recuperative process
must be slow, and this process involves
a sense of our obligations to the ma
ton at large by working hard, saving
at least a little, and through the
proper thrift and diligence repairing