Evening star., 1921-11-19
special Dispa tch to The Star.

Special Dispatch to The Star.
NEW YORK, November 19.-Few
people arc in business Of any sort for
their health. They are in it for profit.
And no business can be in a healthy
flows freely through its arteries
Every business doctor has his own
prescription. Scores Of industries have
responded to treatment. The majority
have completely recovered from busi-
ness depression and others are well on
the way to convalescence. Those
which are still in an unhealthy condi-
tion have not received the right treat
ment.
These latter have failed to respond
to the tonic Of high prices. That rem
edy, instead of increasing the flow of
profits. has deadened the demand. Not
one, however, has failed to respond to
the tonic Of lowered costs. That is
the medicine which every sick indus
try must take sooner or later whether
the dose be bitter or whether 1t is ad-
ministered in sugar-coated form.
Business dispatches received within
the last twenty-four hours show that
great number Of the manufacturing
industries have gulped down their
medicine and are on the mend. The
they choked over the pill. Lowering
OF costs does not necessarily mean
lowering of wages, although no busi-
ness, anemic from lack Of profits, can
support either capital or labor. Lower
costs mean increasing efficiency, bet
ter management and the raising of the
individual standard of production.
Capacity Production.
Manufacturers and business men
have found this out. Many are main
tanning capacity production with
working forces less than those FORM
erly required to produce capacity.
Sales organizations have been i'm
proved and overhead reduced.
The agriculturists are, however, still
sick and cries of pain are arising
from them in every section Of the
country. Until foreign demand has
returned to normal, through the read
tustment of exchange rates, there is
only one remedy for the farmers
the cutting of costs. One Of the larg-
est wool growers in the west. who is
now in New York. outlined today the
situation Of the farmer and the stock
grower.
Il lost about $4,000 this year." he
said, but 1t was my own fault. The
trouble with the sheep business is
that too much sheep herding is being
done from automobiles"
Encouraging Symptoms.
That same situation exists for the
wheat grower, the corn raiser and the
cotton planter. Profits can be made
to flow If costs are cut and those who
are sick enough Of the present situa-
tion to want to get well are realiz-
cine. That is one Of the most en-
couraging symptoms for the COM
plete recovery of business health in
this country that has developed in the
last six months.
In the meantime other industries
are travelling fast on the road to re-
covery. Railroads have resumed pur-
chase of material and equipment, and
this has been followed by resump-
ton OF equipment plants and increase
of employment. The demand for me-
dium-priced shoes is increasing stead
tories in some sections are unable to
keep fully up to demand.
Results Of Price Cutting.
Activity and increased production
have followed the cutting of prices
for automobile tires and the usual
seasonal slump has been notable by
its absence in tire plants. The paper
and activity in the metal trades has
replaced the lethargy which held them
inactive for months. Reduction in
the stocks Of the non-ferrous metals
has led to the reopening Of mines and
smelters long closed. The Thanksgiv-
ing turkey will cost slightly less in
most sections this year. as the wealth
er has been favorable and the produc-
ton of birds has been large.
Retail trade has Degun to recover
from the depression caused by unsea-
sonably warm weather. and the holi-
day trade is approaching expecta-