The Birmingham age-herald., 1921-07-27
By HOLLAND


 summer and early fall of last year how completely conditions had changed and with what certainty re- adjustment had begun. The woolen and silk industries were the first to experience and recognize the change. But in midwinter and early spring the full effect of what has been called the violent disturbance in our business life began to be recognized In the spring, however the woolen industry which was among the first to feel the effect of the change be- gan to, improve. Now some of the woolen manufacturers are finding 1t difficult to meet their orders. The manager of one large wooden mill in New England said today that if he were able to enlarge his plant and then run it at full capacity, he would be doing as good a business as was ever his fortunate lot.
 Business men did not realize in the carly spring that change for the better had begun, as in fact that did not realize at first that change for
 
 the worst was under way. Many of them do not now realize that inn proyement has come. Readjustment must continue, however, for some time, but it will progress without continuing to disturb the business situs tion.
 Although business in the month of June was on the whole quiet, some of the industries reporting that they were not doing 30 per cent or the business which they carried on be- fore the war, nevertheless various factors in the situation pointed to steady improvement. In the first place the demonstration has been ex- cellent that our federal reserve banking system has been able to withstand the extraordinary strain which was put upon 1t. Had the old banking system been in operation, 1 very likely panic would have occur red. similar to the one which caused much distress in 1907.
 In the next place the demonstra- tion is perfect that the industries of the United States including agricul- s..re are ble to furnish material il. any amount which other nations may need It has been said that our in dustrial and business organizations lis gearec for production not only ample fcI our own uesds. but in suf- lic;ent proportions to make exports on very great scale vital neces sity."
 Full recovery will, of course, be slow But the business life of the nation is now conva1escent so to speak and there seems to be no req son why this condition should not continue with favorable progress un- | til health is restored.
 The Rich Mems Panic A year or two after President Roosevelt entered upon what he called his second term as President a silent or as it is sometimes referred 1 to a rich mans panic began The eff 1 feet of 1t was continued all into the | year 1904. President Roosevelts I friends were concerned at this con dition impair Roosevels chances | for election. Recovery began. how ever, but its progress was slow. quite
 as slow as the recovery from the l business depression which American | industries and commerce have ex- 1 perienced in the past year.
 This recovery was checked in 1907,
 and panic, which lasted few days.
 paralyzed business for some months. | was recovery noticed. An earlier de : pression due to the silver agitation | and the collapse of world credit be- | cause of failure of a great banking | institution in London lasted through 1 out the entire second administration
 of Grover Cleveland.
 I When the depression and later the recovery which followed that depres- ! sion which characterized our indus l trial and buisness life from 1892 to 1897 and from 1903 through a part of l 1904 and later 1907 are recalled, then it will be made clear that recovery is progressing now but with slower steps than at any time in the past. but rally more rapidly
 Financing the Crops
 Already bankers in New York and I Boston are beginning to cooperate wit hbanks of Chicago so that money and credit facilities will be provided 1 with which to move the crops from l the harvest fields to the markets. l Financing the crops is sometimes called "a seasonal movement" be- l cause the need of it comes at a time 1 when the crops are ready for the markets and when the farmers must | wait until their crops are sold be- fore they can receive the money
 which the crops earn for them.
 Twenty years ago some of our bankers thought they had discovered evidences that in the great agricul-
 tural districts banking facilities had
 so expended that it was becoming
 less and less needful that aid should
 be sought from the eastern banks
 Yet at that time Secretary Shaw ot the United States treasury strained his discretionary power so that he
 might be able to give government aid in financing the crops.
 But the increase in agriculture has