The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-10-10
What's the Matter With Us,
Anyway?

~ WILLIAM FELLOWES MORGAN
resident, The Merchants Association
of New York.
There are two nam causes, in my
Dinion, for the prevailing business
.asnation.
The first and most important is the
adjustment incident to return to
formal conditions. During the war
ne entire economic structure was dis
.rranged. In many instances the gov
srnmert took control Of existing agen-
les, such as the railroads and ship
9ing, and introduced innovations with
aspect to management and wages
which, while doubtless necessary at
he time, are unsuited to peace condi-
ion.
All our energies were bent toward
he production necessary to winning
the war, and prices rose to abnormal
levels. Now that the stimulus OF pro-
tecting our national life has been with
drawn, the law of supply and demand
again prevails and deAation is In pro
gress.
Demand Shrinkaae.
The shrinkage of demand curtails
production and creates a situation
which is equally hard for employer
and employe, causing strikes and un-
rest
The second is the great difficulty
in finding markets abroad for our pro-
duce. It would be very helpful If we
had such an outlet for our industry
but the other nations of the world are
going through an even severer course
Of readjustment than we are and,
furthermore. since practically all of
them owe us enormous debts, the rate
of exchange is so heavily in our favor
that 1t is practically impossible for
them to purchase Of us.
Thus the loss of our foreign market
comes at a time when our domestic
market is at its lowest ebb.
The present business depression
must terminate sooner or later just
as the boom period which followed
the war came to an end, Such radi-
cal fiuot,satfons In ossr uar1una7 rsruu-
perity more or less inevitably followed
the great arrangement In our economic
structure brought about by the war.
Buying Encouraging
Moreover 1t is as likely that similar
changes viii occur IN the future until
more accurate account of the worlds
stocks on hand and Of measuring pros
nective demand for our products so
that we can better anticinate needs
and operate our industries accord
ingly.
Present staenation however. should
not be made the occasion for undue
pessinism. Although the prohihitive
exchange rates Of European countries
are still preventing the rapid develop
ment Of the foreign market, domestic
buying is proceeding at an encourag-
ing rate.
In fact for some time the volume
OF retail sales has been large, in Snite
OF current unemployment. Merchandise
stocks have been considerably depleted
and the demand for manufactured
goods shows promise OF Improvement
Figures from savings banks indicate
little Impairment Of the buying power
Of the public.
HOW long 1t viii be before 'good
times" actually return. no one can say.
The periods of depression in 1923
fa07-S. 1914-15 were in each case Of
about 1s months duration. Business
has now been dull for more than a
wear. although the worst conditions
have prevailed for only about six
months.
But Little Affected
It is encouraging to remember. how
ever that even at the point OF great:
est depression the total volume OF the
nations business is after all but little
affected The most radical fuctuatfors
do not carry the prosperity curve moe
then Is or 20 per cent, above or Glow.
the normal standard when fairly good
times prevail.
Although we have been at COM
para lively low point for some time
the country is still doing more than
so per cent of its normal business.
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