Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1921-10-26
BANK CHIEF SAYS
BUSINESS IS D. k.
Reserve Board Governor Says
Crisis Has Passed.
TRADE HAS TURNED CORNER
Now Is the Time for optimists 10
Work Hard, Declares w. p. G.
Harding in a Magazine
Article.

Chicago. oct. 19.-The crisis In the
affairs Of American business has
passed without most people knowing
when Il passed. W. Z. G.. Harding. gov
ernOr of the federal reserve board,
declares In an article which he has
written for System magazine. The
article Is entitled. How ] Know BuSi-
ness Has Turned the Corner"
business will not again dip as low
as II has dipped-but neither will Il
20 as high rs II went before said
Governor Harding.
Actual prosperity was never as
great rs il seemed to be-much Of u
was illusory." continues the governor.
"But. on the other hand. actual de-
preston has not at any time been as
low as Il seemed to be. The present
is time for the constructive. hard
working OptimiSt.
cit is quite impossible for any one
To say just what the new price level
will be and IL is idle 10 compare prices
with those before the war or with any
other period and to say that condi-
tions are better because prices are
above or below thar previous level.
Some Prices Going Up.
Not all commodity prices are going
down. Seine are going up. Prices
went up. then they went down. now
they are readjusting themselves. II
we can all get together and aid the or
DERBY processes of production and dis
tribution and get tie public out Of the
idea that buying must stop because
prices may go lower. then we shall
get some stability into the situation.
"The public has a great buying pow
er, and buying power begets buying
power. When one important industry
resumes. others automatically revive.
And Industries are reviving. Slowly.
1t is trut. hut still reviving
Somewhere In the process of dis
tributlon between primary producer
and the ultimate consumer there is a
hOld-back. The ultimate consumer Is
not getting prices i'm proportion To
what the primary producer is paid.
One problem of the business and in
dustrial world today is To iron out
all these inconsistencies and let the
proper relationship between one class
of goods and another class of goods
and between goods and service be re
stored. That takes time"
Basis Of His Observations.
The fact that the volume of federal
reserve notes I'm circulation has been
greatly reduced. the fact that the
wholesale price index number once
reached 272 and stands now near las.
the fact that the total volume of
federal reserve notes I'm circulation
showed continuous upward trend
during 1920 and since then has been
greatly reduced-theSe are among the
things considered by Governor Hard
ing In arriving at the conclusion that
business has turned the corner"
"Our normal business goes hand I'm
hand with the prosperity II the farm
ers. and tile situation I'm agriculture
Is not to be compared with a year
ago" he says NJ another point. "with
cotton at the present price. with n
greatly reduced supply ahead and
with the improved trade outlook. the
prospects are much brighter.
''FrOm spring onward 1927 has been
n period Of approach to equilibrium
aud IF preparation for recovery from
extreme depression. The changes re-
ferred TO have been worldwide.