The Birmingham age-herald., 1921-08-01
By HOLLAND


 Judge Gary's reference to President Harding in the brief address which he made at the quarterly meeting of the United States Steel corporation contained an indirect suggestion which points to one of the reasons why he spoke in words of encourage ment, His remarks continue to cause comment in the financial district, and if they were, widely published will undoubtedly occasion much fav- orable comment throughout the coun- try.
 It was an unusual presentation of facts, figures and opinions. The mas ter mind of the United States Steel corporation was compelled to admit that the earnings of the corporation in the second quarter of the year were not sufficient to pay the regu- lar dividends. It was necessary to turn to the abundant surplus in order to make regular dividend payments possible. And yet Judge Gary's ad- dress breathed the spirit of hope, and was in thorough accord with lHuCl WHICH He ndS SdiQ Sl1CG TedC- tion from feverish prosperity began.
 Perhaps one of the reasons why he felt justified in his hopeful view was the fact that the corporation earned twice as much in the second quarter as was commonly presumed to be the fact. Excellent judges of the Steel corporation's business had predicted that the net earnings for the quarter would be only 2,000, ,000. It is rarely that these estimates are out of the way but this time they were 50 per cent out of the way be- cause the earnings were S21 100000.
 Judge Gary has frequently alluded to the fact that one of the causes of continued business depression was morbid mental condition. Business mon could not see straight. Their vision was obscured by their anxie- ties. This led to the estimate that the earnings of the corporation would be not more than s11,O0o. 900. or at the most $12.000,000, whereas net earnings were gaining so that it was possible to report a total of $21. .000,- o0o This difference, undoubtedly in Judge Gary's view, illustrated the prevailing tendency of the spring. It has led business men to look upon
 
 rious symptoms which pointed to a change or as so often has been said to the turning of the corner"
 | Not DiscOuraGinE or Doubtful
 Although business continues to be | somewhat dull, and is characterized l by hesitation, nevertheless. accord | ing to Judge Gary, the outlook is not discouraging, and conditions are not doubtful. Those who are best in formed now realize that sentiment is | growing better and better. Upon sentiment needed confidence is based, and when confidence is complete then may begin the era of which Judge Gary has frequently spoken, which will be one of unprecedented and yet wholly healthful prosperity
 Judge Gary does not qualify an | opinion which he first voiced some time ago. for he says that some time l in the future probably not distant, ness this country has ever wit messed" There are several reasons for the opinion which Judge Gary holds His reference to President Harding contains one of the reasons. l It was possible to learn at almost the very moment when Judge Gary was speaking that Congress was lis | tening to a communication from the President which urged the adoption l of legislation which involved the ap- propriation of not penny, but which would facilitate the payment to the railroads of the United States of a ] large amount of money. Undoubt- l edly this communication of the Pres l ident to Congress, or at least the 1 knowledge that it was to be made, influenced Judge Gary in making ref erence to the Presidents attitude to- wards the revival of American busi- ness.
 A Change for the Better
 Another reason upon which Judge Gary bases his encouraging opinion is to be found in the fact that no longer is there extravaganza, frantic | attempts to gain enormous profits l and reckless waste In industry. On the contrary, what Judge Gary calls l the orgy of extravaganza is ended. l In many industries perhaps all the managers are diligently occupied in perfecting economies so that the cost of production can be reduced without l impairing the quality of the prod ucts Something of this kind must have been in operation in the various rlants and with the selling agencies of ths Steel corporation. The greater efficiency and higher economies si- lentiy carried on by the corporation since the first of the year undoubt- xdiv explains why the net earnings 1 for the latest quarter were twice as