The Lynden tribune. [volume] (Lynden, Wash.) 1908-current, 1921-02-03

III puSLieSS circles there are tn
independent of each other, may lead
the viewpoints of those who may be
three primary markets of business
Money market and the Securities ma
action of these markets upon each OF
changes that occur in any one of the
pendent of the changes in the other
We hear a great deal, in a period
of readjustment such as business is
now experiencing, about this so-called
cycle of trade.
Mr.. Charles H. Dow, one of the
founders of the Wall Street Journal,
is reported to have likened the course
of the securities market to the flow
of river, stating that the course of
prices over a long period of time re-
sembles the course of a winding river
which doubles on itself again and
again, so that in travelling from one
point to another, distant perhaps only
twenty miles in a straight line, it will
actually traverse a distance of fifty or
sixty miles in making those twenty,
and will often travel for some miles
in a direction opposite to that of it's
ultimate or true course. Furthermore,
the course is full of eddies which keep
the straws on it's surface twisting and
turning back and forth all the time.
The primary movement of prices
corresponds to the true course Of the
river and expresses the gradual ad-
justment of prices to investment
values.
The secondary movements he called
the rivers doublings, and they are at
tons.
The surface eddies reflect the daily
activities on the exchange.
Sometimes the surface eddies double
on the actual flow of the current, and
sometimes the actual flow of the cur
rent doubles on the rivers true course,
but the whole forms the continuous
current of the river.
From the bankers viewpoint, bust
ness requires, for the fixed assets such
as land, buildings, machinery and like
capital investments, capital assets
from the investor through the securi-
ties markets, and the money market
supplies, through the bankers, liquid
funds to finance the flow of goods
through the commodity markets.
Both the investor in the securities
market and the banker in the money
market are dependent for funds upon
replenishments from business profits.
The steady flow of goods in the
commodities market is contingent up
on the purchasing power resulting
from the proper balance of prices rela-
tive to income of the mass of consum.
ers.
We are now slowly recovering from
an unbalanced conditional flood, SO
to speak, has carried us off our feet.
But we are regaining a stable footing,
with the readjustment of prices now
in progress.
This northwestern district has been
much less disturbed than many other
sections of the country, and, with our
vast natural resources, the courage
and energy of our people, and our
strategic position as a gateway to the
trade of the Orient, there is assurance
of a revival of business enterprise up
on the lower safer stabilized level We
are now approaching.
But, sold fashioned" economy and
direct, simple forms of wealth produc-
ton must be practiced.
Resources must be accumulated lit
tie by little, to be available for bust
ness development.
Strict economy must be practiced
not only by the individual and the cor
poration, but by our governmental
agency. The extravasant government
expenditures of recent years must be
curtaiIed. Taxes must be reduced.
The vast issues of city, county, state
and national bonds must not be in
creased at the present time, regardless
of the apparent worthiness of any pro-
posed projects.
A large burden upon the money mar
ket right now is the large volume of
city and county yarrents issued with
out funds in the treasury with which
to pay them, thus throwing the burden
of caisying them upon the various
banks of the state which are already
heavily burdened caring for the needs
of their customers during this period
of stagnant commodities market.
We must all pay as we go. and not
further pyramid our Indebtedness.
1t is essential to remember that we
must view our own particular problem