Omaha daily bee., 1921-08-02
At the Turn Of the Tide
Industry in United States Shows
Signs Of Revival in All Directions.
(From the Boston Transcript.)

| ing into belief that the nation Is at the turn of
the tide III business conditons-that the worst
OF the post-bellum depression is behind: and the
signs OF brighter future already light up the
horizon. Here and there are those who con-
tend that low water is here or just ahead and
that the turn Of the tide may be expected in the
carly autumn. At the moment the bankers ap-
pear to be less optimistic than their comrades
engaged in production. Doubtless the state of
mind in the banking world reflects the losses in
the bankers inventory-a case of stock-takng
in the face OF falling market for his wares
that is, a falling interest rate.
Without resorting to diagrams or tables of
statistics, without relying upon the words of
Some well known financier, certain common
facts are available to the average citizen which
will afford hopeful support to the growing be-
lief that the turn for the better is taking place
in the world OF business. For example, to
know the vast amount OF securities absorbed
by the American public in the last few months
is to realize that there is in reserve vast saw
ings fund which will be available as soon as
the potential investor is gripped by a stronger
faith in the future and can buy at what he be-
lieves to be "a fair price" Many firms, like
many individuals, have been initiating the bear
OF late; the bear puts on fat during the autumn
months, and lives on the accumulated fat dur
ing the winter. Here and there a concern i'm
providently conducted has failed, but through
out boom times the instinct for saving as
serted itself and many firms and individuals ac.
cumulated surplus. 1t is only very recently
that there has been reduction in savings de-
posts. Attention in the business world has
been gradually changing from present troubles
to future prospects; discussion is more and more
developing belief that future prices and fu
ture wages will soon be as good as or better
than pre-war prices and pre-war wages All
this points to a mental turn that necessarily
preccdes the upward turn in business.
Matt f,,1I, fne he&ta . %ba
fact that the producer is we'll aware that his
future depends upon economical production.
The example which Secretary Weeks is setting
in the administration of the War department
is one that producers the country over are emit
lating-cutting down costs, speeding up ef-
hciency. With the knowledge of this necessity
has come the opportunity 10 put new economies
into effect. Our manufacturers and our farm
ers have known for the last four years that they
were paying extravagant prices for inferior
help, for delayed transportation and for unsat-
isfactory service Of one sort or another. Along
with the drop in the price of commodities. came
the opportunity to hire skilled help, and in the
came ample room for a more economical ar
rangement of machines and methods.
Another indication of the return of better
times is the expanding realization that falling
market is not danger il the tall in production
costs can keep ahead of the fall in prices. To
sell an article for dollar that costs IS cents to
produce is not so good as to sell the same arti.
Gle for 50 cents when its production cost is Is
cents Stories OF drops in production costs that
should surprise are becoming so numerous
that they no longer surprise The elimination
of waste in production is today popular goal
toward which the best minds OF the business
world are pressing by many different routes
Seven years of quantity production naturally
made the producer forget how economically
really skilled help under proper conditions can
produce when the emphasis is changed from
quantity production to economical production.
This is again the day OF the rediscovery OF the
skilled mechanic, of the skilled wage Garner in
has been made by the temperance of the
skilled producer. The building world affords
an example OF rediscovery--for there builders
are surprising themselves by making money on
bids which when made the bidders feared were
too low. !
Similar economies are to be found on the
farm in the office and in the factory-nore and
more they are being resorted to in the home.
Then, too skilled labor requires less Supervision
than the unskilled, and the result is reduction !
in overhead Freight is moving much more
rapidly and the day of vast traffic departments
is disappearing. The personnel problem is less
intricate than it was because the supply of
labor Of the best sort still exceeds the demand.
Purchasing is no longer the delicate diplomatic
job that it was short time ago. Business is
running easier" to use phrase current in its
world, than for some time past. And one of
the first steps in that direction was the drastic
reduction in overhead compelled at the begin |
ming Of the post-beum depression. I
On every side the return of confidence is evil
dent-a confidence based upon the knowledge
that America is fundamentally sound; its wealth
is intact, larger markets lie just ahead. To oc-
cupy them calls not for new records in quantity
production, but for new economies in produc-
ton that will command the patronage Of dis
eliminating buyers. The gospel of hard, hon. !
est work that will bring well-earned rewards
is now preached in high places, and its echoes
are more and more heard and needed in the
far corners of our national household The
change from a reluctance to buy at any price.
to a willingness to buy at "the right price" is
already general. A year ago today many sales
would not have been made because that con-
fdence which is the forerunner OF healthy
was absent then: and today it is re-
turning upon the first rpples of rising tide.