The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1921-02-03

founders of the Wall Stseet Journal,
is reported to have ikened the course
of the securities market to the flow
of river, stating that the course OF
prices over 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 distance of fifty
or sixty miles in making those twenty
and will often travel for some miles
in a direction opposite to that of its
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 adj
justment of prices to investment val
ues. ..~-.s. ~. ..,sFs-.'
The secondary movements he called
the rivers doubling, and they are at
tributed mainly to speculative opera
lions.
The surface eddies reflect the daily
activities on the exchange.
Sometimes the surface eddies doubl
on the actual flow of the current, am
sometimes the actual flow of the cura
rent doubles on the rivers true courses
but the whole forms the continuous
current of the river. ).
From the bankers viewpoinc. bust
ness requires, for the fixed assets such
as land, buildings, machinery and like
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 On the money
market are dependent for funds upon
replenishment from business profits.
The steady flow of goods in the
commodities market is contingent up
on thep purchasing power resulting
from the proper balance Of prices rela-
tive to income of the mass consupn-
res.
We are now slowly recovering from
an unbalanced condition. flood. SO
to speak. has carried us off our feet.
But we are regaining stable footing,
with the readjustment of prices now
in progress.
/ The northwestern district has heen
much less disturbed than many other
sections of the country, and, with our
vast natural resources, the courage
and energy Of our people. and orr
strategic position as a gateway to the
trade of the Orient, there is assurance
of revival of business enterprise up
on the lower safer stabilized .evel we
are now approaching.
But, "0ld 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 BUSH
ness development.
Strict economy must be practiced,
not only by the individual and the cor.
| poration, but by our governmental
agency. The extravagant government
expenditures of recent years must be
curtailed. 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 warrants issued with
out funds in the treasury with which
to pay them, thus throwing the burden
of carrying 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 pay as we co. and not
further pyramid our Indebtedness.
It is essential to remember that we
must view our own particular problem
in relation to its position in the whole
/ business current. Then we will not
blame unduly the speculator, the mid
dleman, the producer or the banker,
but will realize that we are all in the
same stream and must sink or swim
together.
If the producer of agricultural pro-
ducts expects to enjoy the lower pric-
es of manufactured articles which ne
consumes, he must in turn, be willing
to sacrifice in proportion to the IN n,
creased purchasing power which VIII
be possible under the lower general
level of prices. The apparent loss at
present prices will in reality be mucn
less than is represented by many. For
example,: IF bushel of grain will at
the present time bring only one-half
the former price, yet this present
Weld of only one-half will purchase
almost as much as the former higher
price of double this amount would have
purchased.
1t is, of course, necessary that pric-
es generally be reduced on manufac-
tured articles, and, in line with these,
productions in wages will be inevitable,
in order that the costs may be reduced
to allow profitable production of com.
modities at the new lower level OF
prices. Just as soon as this general
readiustment has been accomplished
in ali lines, there is no doubt but what
we will have a satisfactory revival OF
business activity, and the sooner all