The Washington times., 1921-12-24
we Have Sustained Shock Of
Prios Declines In Past Eight
cen Months With Remarkable
Success" Joseph n. Defrses
Points Out.
BY JOSEPH H. DEFREEs.

BY JOSEPH H. DEFREEs,
<ssfdent Of the Chamber Of Commerce
or the United States
'"r's''n for the a:,v,d aa,.rn.ti0n.l News
Scopyrisht 1921, By International News
4 4 6ervice.)
Men draw different Interpretation
from the facts that appear in the
business situation which has been 30
uncertain Of late. My own conception
o. present economic conditions in the
cmteu States Is Gathering Strength. !"
40 my mind evidence multiplies TINT
ne elements of weakness which char
scterixed the situation a year ago
uAve run their course in large de.
See ana that we are now in q period
OF business rehabilitation with ma ny
OF the causes of unsoundness elimi-
nAted. However unpleasant events
nave been, they have served to bring
.no country down to fundamentals
anu 70 DISCLOSE once more the grea.
isis OF economic power we have for
fresh start.
Shock Remarkably Sustained.
In twelve or eighteen months we
nave sustained with remarkable sue
cess the shock of price declines such
a. no other country has yet had to
UNDERGO. and we are now in the position
% having gone farthest toward wiping
OUT the artificial features Of our stu
suon left by the war. All of this has
oeen accomplished without resort to
emergency palliatives. There has
courage and of the strength OF our
economic structure.
10 any general statement regarding
tne economic status Of the country
tnere must necessarily be individual
exceptions. Readjustments in certain
uelds will undoubtedly continue. In
me case OF railroad revenues and rates,
definitely organized machinery exists
20 deal with them. In other problems,
AXE taxation. a beginning has been
made and there is promise of more
progress yet to come. Developments
IN these problems and in processes of
REIMBURSEMENT will speed the restoration
OF economic relationships among raw
materials and finished products, be.
tween industry and industry, between
costs OF production and costs of serv-
Ice, between producers dollars and
consumers dollars.
Business Building Now Possible,
A building up Of business activity
has now become possible upon a surer
foundation than has existed for years.
AS always happens in such periods,
raw materials were first to feel the
effects Of deflation in prices. These ef-
fects have been widespread and serious.
The compensation will come through
responce OF raw materials to the new
conditions. At the middle of Decem-
Der Congressional joint committee,
in reporting upon "the agricultural
crisis and its causes" reached con-
illusions of fact that are reassuring
From its statements It would follow
that agriculture can look forward with
much confidence to the future, with
an increasing demand for what 1t has
to sell.
Other producers Of raw materials
seem to have Improvement in sight.
Copper is finishing the year with
q remarkable squirt, one that has al
ready regained much Of the ground
lost earlier in 1921" according to
leading trade journal.
Steel Shows Recovery.
The great basic industry of steel did
not go SO far downward as copper, and
has shown a good degree Of recovery
since last July.
There is every indication that light
stocks are the order Of the day for
all industries and merchants. Today
stocks are SO low that the impulse
from consumption demand can be
Immediately felt, and industry has
greatly improved it's ability for eff
cheney and economy.
Electric Roads Sec Hope.
The president of the Electric Rail-
way Association now tells the mem
HI
way industry has survived in a man.
ner that challenges a parallel and in
spires hope and confidence in their
future success"
Whatever adjustments of revenues
and rates remain to be made for the
steam railways, a deficit from oper-
alton last year has been replaced by
earnings. possibly $500. O00,00 or
more. for the twelve months.
Unemployment has decreased.
Somewhere between 100000 and
100000 persons, unemployed four
months ago. have been put to work
according to Government authorities.
Wholesale prices have the most
direct relation to general business
conditions. In May, 1920, they were
at their peak-27 per cent Of the
1913 level. In November Of last
year they were at 207, and by De-
cember had dropped by Is points.
In November of this year they stood
at 149.
Tumbling Pricse at End.
The prospect is that the tumbling
Of prices we have seen Is at an end
and that their further downward
course viii be brought about largely
by the forces Of competition and the
laws Of supply and demand, l. e., by
processes of our normal economic
life.
The president Of the organization OF
bituminous coal operators expresses
belief that 1.-The bituminous industry
will emerge from the period Of depres-
sion with many Of the handicaps OF
the past removed"
"The flour milling industry" ac-
cording to an authority, has faced
periods which were far more severe
than any recent occurrences"
Outside OF the metals group. our I'm
portant Industries today have an
actual production Of goods as great or
greater than before the war. Some In
I,,.xr,aa ara working at n rate which