New-York tribune., 1921-01-21

Our stock and bond markets have gone
through what was real panic. but one
which not only did not end in collapse
but one which has developed a strength
which cannot now be broken.
Every previous business depression
has been marked by vast over-produc.
tion. If reproduction exists at all it
is the exception, not the rule. What is
pointed to as over-production is really
over-concentration. Because one busi-
ness concern is over-stocked, that does
not prove that the nation is over-stocked.
Most factories, wholesalers, jobbers and
retailers are either already carrying less
than normal stocks or are rapidly get
ting themselves in that position, Just as
might be expected in an anticipation OF
further recession of prices.
Some commodities, like crude rubber,
are below their cost of production and
except for temporary price movements
there is now no way for them to move
but up-and here the experience of the
stock market will be repeated in that
plenty of buyers will be found at higher
prices as soon as it is known that bottom
has been touched.
In spite of the fact that wages are
high and production cost of labor still
higher, there is an army of men WITH
plans all made and an abundance of cap
ital ready to start all sorts of building
and business enterprises, awaiting only
the time when they can obtain cash for
their operations by the pledge of capital.
There are many enterprises which can
go forward whenever they can be
financed where the increased cost of
building now can be covered by contracts
and anortized over period Of years, or
where present increased costs can be
wiped out against earlier operations.
refer, for example, to the fact that many
buildings can be erected in lower New
York and long time leases made at prices
which will not only pay handsome in
come on the cost of building now, but
will amortize excess cost down to pre-
war costs.
higher basis, requiring more centers of
production to offset increased freight
rates. Oil now carried by railroads can
for construction.
The price of coal at the mines will
permanently be higher than in the past
in spite of any reduction in the wages
paid. to mine workers, and this makes
profitable the enlargement of existing
hydro-electric plants and the building OF
new ones.
The very increase in the production
the installation of labor saving ma
chinery wherein the saving will be more
by building now and securing the benefit
of earlier operation than by waiting for
lower costs.
Here and there factories are starting
up which were shut down more from
temporary financial stress, or else
through fear, rather than by necessity
and the same things shut down many
factories which have not resumed.
But all Of this recovery depends upon
our ability to do the vast amount OF
financing I have spoken about above.
There are reasons why those who have
heretofore furnished the funds for our
expansion of business can do so no
longer. We must develop new class OF
investors.
That the wage-earners can save and
invest large sums of money in the aggre-
gate is no longer question, but is .
proven fact, but it requires the CO.
operation of their employer.
There is no waste so extravagant a.
the waste due to unemployment.
If you want to know why we must c.
pend upon creating a now class OF sn-
vestors, and if you want to help IN cfe-
ating better business conditions. you can
read a letter that will publish In she
papers on Monday.
Yours cordially,
HENRY L. UOHERTY,
60 Wall Ssr1sa
Nsv Yesk