Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-09-08
Whole u. S. Will Be Helped
BY Revival In
Dixie.
FORECASTS REVIVAL.
Dark Days of Depression Fleeing As
Prosperity Filters Through Conf
merce Clouds.

Washington, D. c., Sept. s.
Booming cotton prices were in
terpreted today by high Government
officials to mean the real start of
business revival upon permanent
basis. Officials whose words count
said that business is now definitely
in the stage Of revival, and that pros
perity is the next stage of the pro-
cess of readjustment.
Harding Forecasts Revival.
Governor W. P. G. Harding, of the
Federal Reserve Board, and Eugene
Meyer, Jr., managing director of the
War Finance Corporation, Joined to-
day in optimistic forecasts of better
business.
I'm cotton as in other products, We
are getting back to the ola law of
supply and demand" said Governor
Harding.
THE recent change in the demand
for raw cotton and cotton goods is a
fact of fundamental importance, with
far-reaching Importance TO the whole
country" Director Meyer said.
Behind these terse observations, is
teh belief of sound financial vision,
that a revival in one OF the leading
staple crops of the United States af-
fects vtally all other industries. They
sense u reduction in unemployment,
a liquidation of outstanding loans, L
quckening in the movement of money
in different channels, and perhaps
most important of all, the stimulating
effect which rise in values in one
commodity line will influence rise
in other directions.
Rift In Pessimism Needed.
IF there is cessation, for Il brief
time, in this pessimism over the
country" Governor Harding said, 1--WE
would have no depression. Funda-
mentally and basically, as shown by
the figures of the Federal Reserve
Banks, this situation is going to work
out ali right.
Director Meyer predicted that the
rise in cotton values and stimulated
demand would at once operate to
speed up activity in other directions,
and reduce unemployment. He thus
analyZed it:
Thirteen cotton States, with pop
ulation of 36,000,000 whose buying
power has been reduced since the first
Of the year, are ching restored to
normal purchasing power. Southern
banks, large and small, will be able
to liuuidate their frozen loans. The
South will be able to clear the debt
with which it has been struggling.
Business, in buying and selling, will
be restored. We can look for i'm
provement in all kinds of business in
the South.
South Affects Whole NatiGn.
"The business of the whole country
has been adversely affected by the
plight of the South. Revival I'M
Southern business will help to re-
habiliate industry throughout the
country.
at will have a direct effect upon
employment of industrial labor.
Now the South should be large con-
sumers of corn and meat products CT
the central west; shoes mad clothing
made from hides and wool Of the
Northwest; of furniture and automo-
ibles, fertilizer and agriculture! I'M
p,ements, and other goods.
"Some of the aspects of the cotton
situation will lead dealers to consider
the resumption Of normal CARVING
&C stocks by manufacturers; Jobbers
and retailers, in other goods. II IS
a fact that business has gone from
the extrame of overstocked ware
houses at high prices to an under
stocked 2ondi:ion at low prices.
Director Meyer agreed with Gov
ernor Harding that these and other
factors in the economic situation, at
this time, justify the hope OF better
Industrial conditions this winter, and
larger employment Of labor