Omaha daily bee., 1921-07-27
Business Life i,
OF Nation Now !
Convalescent
Many Industries Do Not Real.
ize Change for Better Has
Come; Wool and Silk
First Affected.
By HOLLAND.

Business men did not rcalize III inc
summer and early fall of last year
how completely conditions had
changed and with what certainty re-
adjustment had begun. The WOODEN
and silk industries were the first to
experience and recognize the change
But in mid-winter and early spring
the full effect Of what has been called
the violent disturbance in our busi!
ness life began to be recognized. In
the spring, however, the woolen ir'
| dustry, which was among the ilrst ~
feel the effect of the change. began ~
improve. Now some of the wooleih
manufacturers are finding it diff
cult to meet their orders. The man
ager OF one large wooden mill in New
England said that if he were able tot
enlarge his plant and then run it at
full capacity, he would be doing as
| good a business as was ever his for
tunate lot.
Business men did not realize in the
early spring that a change tor the
better had begun, as in TACT they did
not realize at first that change tor
the worst was under way. Many of
them do not now realize that I'M
provcment has come. Readjustment
must continue, however, for some
time, but it will progress without
continuing to disturb the business sit
uaton.
Steady improvement.
Although business in the month Of Juns
:, ,hrla ,iet H.
dustries reporting that they were not
doing so per cent of the business whica
they carried on before ,a the war, varios ,t.sss
demonstration has been excellent that our
federal reserve banking system mas .,,,,n psrn
which was put upon 1t. Had the ola
banking system been in operation. sim,,ar
likely panic would have occurred sinliar
1907. ~
In the next place the demonstration
perfect that the industries OF the Sn's9
States. including agriculture, are able 70
other ,,re nations may need i, has been
said that our industrial and business or.
only ample for our own needs but in sur
ficient proportions to make exports on q
very great scale a vita! necessity.
But the business life Of the nation Is now
convalescent and there seems to pc no
reason why this condition should ii noI
continue with favorable progress until
health is restored.
Rich Mems Panic.
A year or two after President Roose-
welt entered upon what he ca led his sec
ond term as president, silent or as " is
io began The effect OF i was continued
we'll into the year OF 1soi. Presdenti
Roosevelt,s friends were, r,.. concerned ess resi-
for election Recovery began, however.
but its progress was slow, quite as slow
the recovery from the business ael
preston which American Industries ana
commerce have experienced In the last
year ,.o-
a panic which lasted a few days raralyzed
business for some months. Not untll
early in the following year was recovery
noticed. An earlier depression due to the +
credit because of a failure Of great
banking institution in London lasted
throughout the entire second administra"
covery which followed that dsp,e'sioa sion
ns,, wns s fs is our 70 ssS sna
1853 through a part Of 1904 and later
1907 are recalled then 1T will be mads
not with slower steps than at any 'tinss'~
in the last, bnt really more rapidly.
Financing Crops.
Already bankers In New York and
Boston are beginning to cooperate with
banks of Chicago that money and
credit facilities will be provided with
which to move the crops from the harves9
fields to the market. Financing ths
crops is sometimes called seasona1
movement" because the need OF 1t comes
at time when the crops are ready ZOE
the markets and when the farmers mdsq
walt until their crops are sold before they
can receive the money which the crops
earn for tham. Il
twenty years ago some OF our bank3
ers tAoveft they had discovered evidenced
that m the great agricultural districts
bankins facilities had so expanded tha4
II was becoming less and less needful
that aid should be sought from the easter4
banks Yet at that time Secretary shaw
of the United States treasury strained hi4
discre tionary power so that he might b4
able to give government aid in financing
the crops.
But the increase In agricultural had
been far greater since 1900 than 1t waS
at that time thought probable. Wf
have been growing recordmakins crops
and may grow one this year. Therefore
the financing of the crops this year will
entail large credits and funds
Yet one OF the leading financial au4
thorities of New York says that the crod
financing requirements, great as thes wiQ
be- will cause no stringency and no strain
upon the banks because. 'ths Americad
banking system Is now in fine position
meet late summer and early autumn re@
quests for credits"