The Washington herald., 1921-07-16
cosrIstrp rnoM rAos. oNE.

~. 4
and no less courage. skill. or In
teIligence than when we met these
disasters before. We do have two
forces working in the countrv of .
quality never experienced hitherto.
First. we have now a proved flnan-
cial system that has saved us from
tary panic that would otherwise
have accompanied so tremendous a
fall in values. Second. we have
spread willingness to give aid to the
injured in business. Thousands of
firms whose cases seemed hopeless
safety.
"If we would study the cause Of
this depression and the remedies for
1t. we should devote our time to the
examination of the economic phen-
omena of the war and Of the post
war boom. From the war we have
the necessity to recover many Losses
and to change our productive for ses
in accordance with the tremendous
economic shifts In the world.
Spreading over all this. however.
lies the fact that this depression is
to a great degree born CT the malev-
olent forces we set in motion by IN
fiation and by all booms. IT Is In
the booms that we speculate. over
extend our liabilities. siacken down
in effort lower our efficiency,
waste our surplus in riotous living
instead OF creation of new capital.
drive our prices to vicious levels.
lose our moral and business balance.
The Only Way Out.
I'VE must suffer a period Of duress
from war, and punishment for the
boom. and only until we rebuild our
virtues of hard work. frugal living,
more saving. sober conduct. higher
honesty. These things are trIte
enough but they are as immutable
az history and thew are the only
way out. There are few people
who will not accept thess hard facts.
who will persist in the notion that
they can by various devices avoid
reaping what they have sowed.. The
resistance of a few groups of manu-
facturers or dealers to lowering
prices to the general level; the re-
sistance of few groups of work.
ers to accommodation of their wage
to the decreasing cost of living. and
the necessity OF a better days work:
the refusal of some people to curtail
their extravagance-all just contrib
ute to our undoing. They have to
com into the cold water in the end.
They cannot get more than their
ration of the total. In the mean
time. they delay recovery and con-
tribute to unemployment among the
rest of us.
However, the vast majority Of
us have cheerfully accepted the in
evitable. l have records showing that
in most manufacturing industries
efficiency has increased from 20 to
80 per cent during the past twelve
months. Our farmers are making
extraordinary efforts. They are
economizing in supplies and machin-
cry, they are making the old things
do little longer. they will bring in
this years crop at a much less cost
than for many years past. Thus
at least so per cent of our people
have accepted these homely truths
and taken those steps that are pri-
mary to overcome any depression.
These people have adopted that slo-
gan of give fuQ measure, which
st. Luke announced as a fundamen-
tai of economics some 1900 years
ago. That Is why l insist we have
turned the corner.
The purpose and place of the
government in expediting economic
recovery is raised in Washington
every hour OF the day. We are
flooded by economic patent medi-
cines that would evade the stern
laws of economic hygiene. The
question of what the government
can do becomes in part a question
of our whole attitude toward social
and economic questions. Unless We
would destroy individual initiative
and drive ourselves straight into
naturalization or paternalism, the
government cannot undertake to re-
duce or raise wages, to deal in COM
modities or fix prices. no matter
how it Is camoufiaged.
The Presidents Program.
The government can relieve COM
merce of many unnecessary burdens
to which the government is a party,
and II can. by cooperation with bus
mess and with other governments,
assist in removing obstructions to
recovery. 1t can cooperate with
the community to point out the way
of nrogress.
The whole administration is CIV
ing it's every energy to the removal
of the great burdens upon COM
merce and industry and to aid in
recovery where the goernment can
properly assist. This great economic
program of our President includes:
81. The revision of our tax sys-
TEN.
p 20. The reduction OF government
tai expenditure.
3. The settlement of the tariff
"a. The Reorganization OF sne
Federal machinery for more EN-
cient service.
"5. The reorganization of our mer-
camille marine.
g. The refunding of foreign loans.
Z. The relief of the world from
armament.
"s. The assistance to exporters of
our commodities.
"9. The upbuilding and safeguard
ing of our foreign commerce.
10. The assistance to our farm
ers through supplement to the nor
NAL banking machinery, by mobili-
zation of private credit to take care
of cattle, cotton, and other commod-
tiles distressed through shifts in
world conditions.
al. The expeditions settlement, OF
the obligations of the government to
the railways in order that they may
quickly resume normal employment
and enlarged maintenance and bet
terment expenditures.
"12. Encouragement to develop
ment of our great power resources,-