Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-12-31
u. s. RESERVE BANK HEAD
PREDICTS BUSINESS REVIVAL

WASHINGTON, z Dec. 30.-The
bells that ring in 1922 will usher in
a business revival that will develop
in due course into "a new era Of pros
perity" for the United States.
This confident prediction was made
today by w. P. G. Harding, COVER
nor of the federal reserve board.
Choosing his words with care and
weighing his phrases before he ut
tered them, Mr.. Harding told what
his exceptional opportunities for sur.
veying the nations financial condi-
ton have shown him.
Business has passed through the
primary stage, the acute period or
reaction" he said, summing up his
observations. 'It is my sober con-
viction that basic financial condi-
tions are very much better than they
wire twelve months ago.
There are many indications that
the beginning Of revival cycle is
not far distant. When it does definite
ly set in, 1t will be followed in due
course by new era of prosperity"
Speaking thus, Mr.. Harding, sit.
ting at his desk in the treasury,
lOOhSu #llhG d I1ldlICS CApClI' iCy
reaching out his hand to press but
ton he marshaled battalions, regi-
ments, divisions of living figures and
facts to, support his prediction.
He sits here in Washington. but
his eye is everywhere. He can tell
you at given moment the state OF
the financial health of any city in
the country, of the country as a
whole. He fas his finger on the
country's gold-pulse.
Explains His Opinion
If you saw him on the street you
might mistake him for a doctor or q
lawyer or a preacher-a quiet, home
ly,. kind man, whose clothes. fit him
but look as though they do not.
"Why do you think a business re-
viJal is indicated?" Mr., Harding was
asked, with, an intimation that his
prediction might be considered Of
fetal optimism.
He repudiated that suggestion.
There are well defined cycles in
business" he said. 1--WE are nearly
at the end of long period of slow
liquidation, business depression and
stagnation. Such a period is fol-
lowed by a revival"
High railroad rates and taxes, high
costs Of fuel and rent, and the inn
paired condition Of agriculture are
the chief barriers to. complete eco
nomic restoration, Mr.. Harding said.
Farming Outlook Better
But" he added, II think the out
look for the farmers is more hopeful.
Also, for some months past there has
been a marked easing Of the credit
situation. Notwithstanding some fea-
lures of our revenue laws, the in
vestment market is now absorbing
securities at reasonable rates which
would not have been considered a
few months ago. Liberty bonds are
at or approaching par. Good rail-
road and industrial bonds have
gained, as have some standard
stocks"
These things, Mr.. Harding said.
show money health. -'.'
The arms conference, he declared.
with it's stabilizing effect on political
conditions and it's promise Of peace.
will do much towards restoring pros
perity.
"The proceedings Of the conference
have already had stabilizing eff
fect,' he said. 1.-THE notable adj
vance in sterling exchange when the
conference assembled was not mere
coincidence. When money once ex.
pended for non-productive arma-
ment is released for productive use,
it will stimulate revival of business
conditions.
rehabilitation of conditions in Eu-
rope. which should be helped by a
successful outcome of the conference,
should make it possible to engage in
commercial and financial transactions
with Europe on a much larger scale
than at present"
Copyright, 1921, by United Press