The Washington herald., 1921-01-01
GOVT. OFFICIALS
STATE VIEWS ON
ECONOMIC FUTURE
Little Ground for Gloomy
Outlook, Says Secretary
Houston.
WORST LIKELY/PAST
Secretary Payne Believes Con-
ditiOns on Whole Are Ad-
justing Satisfactorily.
WORST LIKELY/PAST

Nothing but extreme optimism
relative to our economic future pre-
walls, according to interviews hand
ed down yesterday by high govern
ment officials and departmental
heads, which were as follows:
Secretary Houston, of the Treas
ury, said: Spring will doubtless
witness an extensive revival Of
business and industry. The coun-
try is passing through a period OF
deflation and readjustment Of prices
with much less disturbance than
might have been expected. Just
when the peak will be passed can
not be foreseen. Reviewing all con-
ditions, there is little ground for
gloomy outlook for the future.
Transition and readjustments are
world wide and beyond the control
of any industrial group, or even OF
nations. During the war forces
were set in motion which no gov
ernment could control, and read
justment involves conditions no ma
tion can thwart.
The country has stood the strain
Of war, and there is no doubt 1t Will
cope with the less erious situation
produced by the return to peace"
Gov. HardInE's Views.
w. G. P. Harding, chairman Of
the Federal Reserve Board, said:
The worst of the readjustment pc
riod is perhaps past. Price recess
sions and the resultant conditions
are not peculiar to this country.
They obtain in severer form every
where else. In countries where
there has been the greatest infia-
tion of credit and currency the dis
tress is most acute.
I'VE are now passing through a
period of readjustment which was
expected Immediately after the ar
mistice. Unsettlement Of prices and
a hesitation in business followed
that event, but the demand for goods
at any cost was so great that prices
bounded to new high levels. 1t is
now generally recognized that
sweeping price readjustments are
inevitable"
Secretary Payne Speaks.
John Barton Payne. Secretary of
the Interior. said: General condi-
tions on the whole are adjusting
themselves satisfactorily. The con-
dition of our rural life Is, however,
a matter Of grave concern. During
the past decade our cities have
grown much faster than our Farm
population. The ratio of increase
on farms Is only One-fifth Of the
increase for the nation as a whole
People do not like to live alone.
I believe farm neighbOrhOOd set
Elements would do much to solve
the problem"
Defrees Optimistic.
Joseph X. Defrees, president OF
the Chamber of Commerce Of the
United States, said:
The country has long been look
ing forward to the time when il
could get back to normal By
normal conditions we do not neces-
sarily mean pre-war conditions, but
conditions that are balanced and in
proper relation to each other.
1T is not possible to say how
low prices will go. but with a few
possible exceptions they will GER
tainly come down. When a final re-
adjustment is made economic laws
will guarantee a proper balance.
7 cannot predict when the read
justment process will be complete,
Getting back to normal may prove
a somewhat painful process, bot
the way will be made easier If
there is an understanding of the
fundamental laws involved and a
readiness on the part of all ia
help"
Recovering Says Douglas.
Archer Wall Douglas, chairman
of the statistical division Of the
United States Chamber Of Com
merCe, said:
We will soon begin to react
from the present industrial depres-
sion. II will first be marked by an
increase in the prices of agricul-
tural products. We are recovering
from unfounded fears of bread
lines and food shortage.
There is general belief that
there will be a revival of building in
the spring. Conditions will be more
favorable at that time"