Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-11-06
BUSINESS IS ON
THE Up GRADE IN
UNITED STATES
Its Speed Is Not Striking,
But Better Times Are at
Hand; Buying of NeCesSi-
ties is Picking Up.
(BY HARDEN COLFAX0
(SpecinI Correspondence 10 The JOurna':,
Copyright 1921 by Albuquerque JOurnap

(SneCIul correspondence W ihe o""''
Copyright 1921 by Albuquerque Jourha'
washington, Nov. 5.-+GoVern-
ment agency reports show tna'
business is apparently taking the
upgrade. but its speed is not yet
very striking. Better times are at
hand, however, and the depression
has had a result more important
perhaps than those depressions OF
the past. for there is evident a real
desire this time to make certain,
If possible, that business slumps
be avoided or minimized in the
future.
Studies Of the phenomena OF
business depressions are being
made. probably with greater care
than ever before. There has been
a disposition in the past to con-
slider panics, depressions and the
like as something in the nature or
acts of providence and beyond
control. Now business is being
conducted on more scientific prin-
ciples and the control of business
activity is not considered necessar-
lily impossible if the problem is
dLlb htI III lllC ll,lAL way
Means For Avoiding Panics.
Already the means have been
found for avoiding panics. If the
federal reserve bank system had
not been in operation, it is almost
universally conceded that the
slump from which the country IS
emerging would have been, in
stead of a slump, a distinct panic.
Closer watch of business condl-
tions, greater care in determining
statistically the factors that go to
make up those conditions and a
better understanding of funda-
mental economies will do much, 1t
is believed, to prevent trouble in
the future.
Buying is picking up, but It is
buying of necessities not luXuries
The demand for medium priced
goods is Obvious in practically ev-
cry line. The buying power of the
public has diminished. the depres-
sion already has made heavy in
roads into wartime savings, par
ticularly in the case of persons
who have been unemployed, and
money is not being wasted these
days. Economic authorities ex-
pect the demand for shoes and for
medium priced clothing to con-
tinue. For house furnishings, the
demand is yet only fair, and for
goods in the semi-luXury class,
such as monographs, pianos and
automobiles. although there Is
some improvement, the medium
priced articles have the call.
Interesting Theory.
An interesting theory has been
advanced by certain close students
of economic conditions-a theory
that the slump just ending would
not, under normal conditions, have
been considered a slump at all.
but that it was merely a reaction
from n business boom, initiated in
the early part of 1920, for which
there is not sufficient foundation.
The business activity which began
at that time was based, according
10 that theory, not on fundamental
improvement in conditions but on
psychological conditions. Psychol-
ogy carried things a certain dis
lance but lasting foundations could
not be laid on wind. AS a result,
when conditions did return to bed
rock, matters looked much worse
by comparison than they would
have otherwise.
Undoubtedly the world is poor.
The debauch of five years of war
must be paid for, and the produce
tive energies of the earth as man
Tested in agricultural production,
are all that can be relied upon to
restore the economic equilibrium.
The farmer must be encouraged
to continue raising normal crops.
Business men have learned from
their recent experiences to proceed
cautiously in making extensions,
to buy consistently instead of
waiting for abnormally low prices
and to extend credit judiciously.
These things in themselves will be
helpful for future stability.