The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-11-30
DOMESTIC BUSINESS HAS
TURNED THE CORNER"


/ There are multiplying evidences of
the fact that domestic business has
turned the corner and is gradually
but surely emerging from the della
| ton period that began about the mid
die of last year, according to the cur
rent issue of THE Guaranty Survey"
| the Guaranty Trust company's, Of
New York, monthly review of bust
ness and financial conditions. Two
outstanding indications of the inn
| provement are cheaper money, with
its concomitant easier credit, and the
more or less widespread industrial re-
vival 1.-THE Survey" says, in part:
"a building boom is sweeping the
country. There is decided betterment
in the textile trades and the shoe and
Our surplus copper is gradually be-
ing marketed at prices that tend up
/ ward There is increased output of
/ iron and steel, and the railroads are
coming back into the market Bust
mess failures are less numerous. Tn
employment generally is decreasing,
land savings are increasing.
fThe banks of the country have
been able, since the establishment of
the federal reserve system, to aid in
effeeting a more orderly general read
I justment of industry, following a pc
triod of initiation that was possible so
! long as our banking system remained
extremely decentralized. Such service,
particularly in the last year and a
/ quarter has been of incalcuable BEN
| eft to the nations business. But the
/ avoidance of a general collapse of
credit, such as was repeatedly expert
enced before the organization of the
federal reserve system, has necessar-
lily tended to prolong the period of re-
adjustment.
Meanwhile through the gradual IL
quotation and utilization of accumu-
/ lated stocks of commodities, the way
has been prepared in a number of in
dustries for an increased volume of
production for current consumption.
The check to the downward course of
general prices in this country and
abroad has lessened the incentive to
defer contemplated purchases, and
I
ton of ho1d-over stocks in creating
an enlarged demand for current pro-
duction.
But much must be done to expe-
dite better conditions. The maladjust-
ment between the price of farm pro-
ducts and other commodities must be
eliminated before We can consider IL
quotation as completed, or before
there can be a full measure of pros
perity. The tax burden must be more
equitably distributed, and the high
surtax rates reduced The railroad
funding bin should be passed as early
as possible to put the carriers on
their feet financially and re-establish
railroad credit and operating eff
cheney. In view of our changed eco
nomic position, permanent high pro-
tective tariff should not be enacted
to hamper our foreign trade and pre-
vent, or indefinitely postpone. the IL
quotation Of our foreign debts. Every
effort should be made to insure the
success of the disarmament confer
ence. and thereby reduce tax burdens
and eliminate colossal economic
waste. And finally, we must assist
other countries to return to prosperity
as quickly as possible. largely through
discriminating foreign investments
and long term credits on an adequate
scale
How prolonged Willie the period
required for the complete resumption
Of the country's business activity on a
normal scale must depend in consid-
cradle degree upon the progress Of in
dustrial and financial recuperation in
other countries which consume Amer
lean products
lmprovement in the Financial situs-
zion.
The improvement ia the financial
situation in this country since the be-
ginning or the reaction against infla-
ton has been pronounced and well
sustained. Since November ), 1920
when total discounts Of the federal re-
serve system We're at their maximum,
and since December %. when federal
reserve note circulation was highest
almost continuous progress has taken
place in the technical position Of tile
banks. The extensive liquidation re-