Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-02-06
N + A. FLEMING.

Il is slow work, this recovery OF
The normal in trade and finance after
the trying experience of 1920. but the
best Of judges are in accord in the
declaration that IT is sure.
Gov. Harding of the Federal Re-
serve Board, first to apply the brakes
when the American machine was rum
ming full speed ahead with full
pressure Of steam, assures US that
the danger is past" danger that
most Of us failed to realise until 1t
was really upon US.
The trouble today seems to be that
under the urge of production Amer
lean Industry has produced vastly
more than we have market for. not
more than the markets Of the world
needy no means-but more than
the needy parts Of the world can pay
for. .
Unfortunately, with the let-up In
our foreign trade. due to inability to
make payment, solely. we And our
own great market, the best on earth.
partially, but fortunately. only tempo
rarity, injured by inability on the
part Of the great asricuiturai popu o
gram, through losses on crops.
The agricultural wealth of the fat
years. which rotate more or less often
with the lean. was probably lnvesteo
in farm lands or farm betterments.
In all probability much OF the pig
gains of war years may be available
to farmers today. but the farming
community, and that includes the
southern planter, feels poor. and, 1eei,
ing poor, will keep the strap around
the family pocketbook until neces-
sity's demands force the removal or
the poverty Of the season 10 forgotten
IN RETURNING PROSPERITY.
Farmers' Buying Power Less.
We have no better evidence of this
fact than in the report that Mont
xomery Ward & Co.. the second OF the
great mail order houses of Chicago,
and the oldest concern In the Dusi-
ness, sold $5,000,o00 less goods IN
J.n1asy. 1871. than in the same month
If MONTGOMERY Ward & Co.. lost
trade SO did all other wholesalers.
and this was reflected in the reduced
freight carrying of the great western
roads. directly influencing the eastern
freight volume through shipments
from manufacturing and producing
points.
This is one reason why our rail-
roads are complaining. There is not
the freight to haul and the increased
rates do not produce revenue because
the old volume Is not there.
We have the assurance OF bankers
that numerous failures that were ex-
pected among the larger corporations
have been avoided. and there IL as
surance In that. They are also posi-
i've in the statements that many con-
Germs have been satisfactorfly ad-
justed through sales and cut prices,
but unfortunately some seek TO
avoid the inevitable and but delay
improvement thereby.
Pubic Buying Power.
The buying power Of the public Is
not being exercised to anything like
ton to wait for further concessions
in some lines, inability through
enormous costs in necessities. chief
Of which in this community Is the
matter Of rents. which absorb too
large : percentage Of income. and the
The banks Of washington enjoyed
their best year in 1890. the culninA-
ton Of a series Of fat years. Thrift.
caution and fear Of unemployment
may be given credit.
Heney Piles Up.
December 81, 1915, the savings
banks Of Washington held $12.sSs. 900
in deposits the national banks $780,
100000 and the trust companies $a2.-
Today these figures are practically
~
100000 for national banks and $685.
1T, 900 for trust companies.
From these deposit items II IL very
evident that the buying power II
there. though latent. and that It ID An
Increased buying power.
Predict Start Apfn I.
Charles 7. Bell president of the
pAny. recently returned from New
York, declares that sentiment there
is not inclined to favor the theory Of
better times Immediately. but that
for some reason or other the banking
and inanufacturing interests look for
Perhaps it will be the change Of ad-
ministration; perhaps the date named
will mark the completion Of gigantic
creasine our foreign trade through
large financing; perhaps it win be the
working out Of other problems be-
tween now and then or the full
fruittoa Of spring.
.econpiished. Is.a;i md in.anfseeur r
tNg ac4fvity ASri1 1. 1871. WIN be cor.
daily welcomed.
TIE Money MAx1pek
ndoesn't seem reasonable that there
ahould Do any great tightnesS In the
msnv maric4 certainly nothing morn
than . temporary stiffness
with the volume Of business ma
tefially reduced, with merchants do
ing more hand-to-mouth buying than
ever. with banks with more money
available than they can use to good
advantage, high rates do not seem
warranted.
It Is probable that these rates At
this time reflect the operations of
government financing. which will be
heavy for months to come. and es-
pecially for the present, as tax re-
csipts Will suffer very seriously this
year from blanks where they have
heretofore collected heavily.
sSme Facts for Coaeress.
Apropos OF the discussion now eoins
on regarding the forgiveness Of
We ought long ago to have written
on our war debts owed to us by our
aries and every month that passes
shows how much friction and bitter
ness VIII be involved by any attempt
all the traditions Of British financiai
prestige surely demand that we
should. at any sacrifice. meet our own
promises to pay. Suggestions have
lately bean made in the daily press
that she should tske payment Of our
debt 10 her In the shape OF eur allies
debts to ua. This 10 Net the way in
which the word OF IN Englishman'
hAD been made prUverbiAl throughout
Ions honesty. and 10 tho best asset VI
own America lent money to US and
We h1ve to pay It, To ask her to Tread
through" 40 to debtors who are less
able to pay u to propose q compost
don, and, Weakened a. we are BY the
90 mt L.