The Washington herald., 1921-07-16
Have Turned the Corner.

II trial depression has turned the corner! Is II
= fact economic recovery is actually on the way?
Is there sufficient for entire confidence that
the upgrade has come and that the skids have dis
Appeared? Have we passed the period of kidding
ourselves" for psychological effect in the honest
hope Of being able to lift ourselves out of the
slough by our boot straps, and there now real
fundamentals OF confidence, causes which act ot
themselves and do not need to be overplayed?
The Herald has passed the stage of hope, has
passed the period of belief based longing and
has come to the state of entire confidence. Here
are our reasons: Months ago the cost of living
reached from the producer to the manufacturer, to
the wholesaler and finally to the retailer. This low
erng of prices continues That has been the period
Of liquidation. During this period labor has
quite generally accepted lower wages along with
increased efficiency, which is increase Of produc-
ton per man Employers have adjusted themselves
to reduce profits and have weeded out many wastes.
Production costs have lowered.
Compared to most other countries, we have had
little serious labor disturbance. The labor leaders
have shown loyalty, good and understand
ing of economic conditions. This administration
has brought large element OF business manage
ment into government. Governmental overhead is
being materially lessened; there savings all
along the line. The Shipping Board, source OF
- enormous expense and wastage, is being put on a
den settlement with the railroads to return them
to financial solvency, is following a reduction in
wages and an agreement is under way to modify
labor rules.
The. railroads are only the largest single
employers of labor and the largest buyers OF ma
terals but on them depend the breadth of markets
and to a measurable extent the prices of all COM
rnodities AS they approach the normal this is al
most assurance that all productive industry will
rapidly follow. To promote this is better under
standing and more OF cooperation than ever before
among business competitors. This is getting to-
gether help each other, and not scheme of cut
ting somebody's throat.
Congress has finally recognized that tax revi-
sion should have the right of way tariff revi-
sion and all other legislation. 1t strange
fatality which held back the most important busi-
ness need the last and yet. it may be undertaken
now with a clearer vision and formulated public
opinion which will be of material aid in quick deci-
sions Business should know by November 1, to
what it must adjust itself to meet taxes, well
as the total national burden, helped by a greatly
simplihed system of tax collection.
In the world at large, there is less of war than
since the great But for the Greeks and Turks,
there would be actual peace for the first time in
seven wears Germany has met her first reparations
payments and is prepared to meet at least the total
of the initial requirement in cash. Reparations is
but problem of payments revision. Great Brit
AIMS labor troubles ended, and, even more i'm
portant indeed of primary International Importance,
A the confidently expected settlement of her
Sbubles as to Ireland
III Neither is it probable that the fires in Silesa
AMI again burst into flames, though there may be
Al hes The Balkan states have largely reached
agtements for greater freedom of trade and un-
hartpered intercommunication. All of the disturb
L he Rriti
IAd give promise of permanent adjustment The
darfral countries all OF which prohted by the war,
III inear the close of economic liquidation and show
lib iked signs of recovery.
III Finally comes the ready and cordial response to
President Hardng's call for disarmament confer
ence and the settlement of world policy as to the
Near East. The importance of this is the recogni-
ton that Jan Smuts but stated fact when he said
the center of international disturbance and future
nenace had been changd from the Atlantic to the
Pacific When Pacific troubles are settled, misun-
derstandings, cleared away and policy reached to
be common to all governments with special interests
on the Asiatic side, then at last swords can be
beaten into plow shares, the spears into pruning
hooks and the world can look forward to a long
period OF peace with ornaments unnecessary, since
the causes will be removed. Then all the world can
turn to industry and the enormous costs Of arma-
naents. which are merely for defense, can be
turned to increased production.
Business does not have to be told all of this
Ii inevitably senses it. 1t has an almost uncanny
intuition 1t has antennae which reach into the at
mosphere and intensely sensitive to every
change. They transmit the voices of hope and en-
enlargement, but above all they signal the ener-
gizng power of related facts from all over the
world They gather together sort OF vibratory
motion in action by these facts, which regulates
the wheels OF business without the need of other
impulse guidance than the intangibles or impon-
derables which they quickly recognize as verities