The Washington herald., 1921-09-07
AMERICA IS PAST
PrRlLOUS CORNER,
SAYS SULLIVAN
Now Moving Toward the
Town of Better
---s---
aS Times.
ny MARK SULLIVAN.


made by the administration in the
direction of back to nOrmalcy
with the following words: Alto
sether, we look to the future with
ereat hope The fsct is, of course,
that there is ahead the greatest era
Of. expansion and prosperity the
world has ever seen. Everyone
knows this. and the only question
discussed is when it will start"
The last few words of this are a
uttie cryptic, but undoubtedly 1t re-
heets the expectation held among
the highest authorities in the ad-
mipistration competent to judge
such matters to the effect that in
a business sense the country mas
turned the corner. and that an up
ward swing can be expected wltnlh
a reasonably near future.
See Upward swing.
In some of the best qualified quar-
tiers this expectation is held in the
very terms in which Hays has ex-
pressed il. They believe the era OF
expansion will reach as far upward
as the recent depression reached
downward. and that the volume. IT
not the suddenness. of the coming
prosperity will be equal to that OF
the recent slump.
On the same day as Hays speech,
the head Of the War Finance Cor
poration. Eugene Meyer. jr.. gave
out a stattment which. although
more cautious than Hays. pointed
in the same direction. He said that
thS.recent rise in the price of cot
ton has added something over 1900
900. 900 to the going value" OF the
south, and has restored solvency to
many banks. individuals and com
nercial concerns in that section
whieh a few months ago would
have been unable to liquidate for
enough to meet their liabilities
Point. to Eject Elsewhere.
Meyer went on to say that this
improyement in the South means
restoration OF business activity in
huyine, as well as in selling. II
means a general improvement OF all
kinds Of business in the South. and
an increase in railroad earnings
which depend on general business.
To the North and West IL Is equally
important because the 30.OOe,OOO
people, who compose the poouIs :
ton OF the thirteen Southern cot
toR states normally. are big con-
sumerS of corn and hog products
.Ot- ihe Central West: of the shoes
> nd "elothinI that are made from
: tne'. hides and wool OF the North
west, of furniture. of automobiles,
OF. fertilizers and agricultural i'm >
plemfents. and OF manufactured
goods of all kinds
In all this Meyer takes pride as
managing director of the war
Finance Corporation. He is one OF
a small group Of overnmental or
hcials who are most lirectly con-
-ccrned with bringing about the
"return TO normalcy" in a business
sense Undoubtedly the operations
Of the war Finance Corporation
have been the largest immediate
force in what has happened In the
South.
Needs AaaIysis-
But without cCnying the alm' st
surely correct theory that the
country has passed the worst. II
will be useful to analyze exactly
what has happened. Such an an
alysfs. while not destroying hopes
based on reason. may help to save
US from hying itnO an excess of
optimism only less harmful than
the excess OF pessimism of the last
wear and hair.
In The first place. one large fac
Gnr in the in-:eased price of cotton
is admittedly ;he, government crop
report. which shows an expectation
Of = rrihe less than half the nor
NAL crop. However. such a repCr.
may have helped embarrassed
bankers and others still carrying
last years crop. 1t cannot be said
TO he a step in the direction of the
aufy true wealth. which consists of
more goods and more buying power.
. Has saved Many.
Also. while the influence Of the
War Finance Corporation cannot be
rninimiZed. II is to be remembered
that the chief help il has rendered
has been in the shape nt saving
embarrassed persons from the
necessity of forced liquidation. 1t
has enabled the owner of the cot
ton. " wait for a better market.
and has prevented unloading on a
disorderIy buyers market. which
might readily have forced the price
% Of cotton lower than il went. with
effects of cumulative disaster.
- But the War Finance Corporation
has not been able to create any new
buying power. 1t has not been able
to stimulate exports as greatly as
II, once hoped becaues the inability
or disinclination of Europe to buy
in great quantity is caused by the
chaos Of exchange and by other con-
dttfons that the War Finance Cor
poration alone cannot cure. The best
evidence that we are not yet on
the entering stage OF a business
boom in the sense in which the word
Is commonly understood is the fact
that we are concerned about the
widespread unemployment.
The Worst Is Past.
The net of it all is that in several
respects we have passed the worst.
We are over the period of forced
liquidation. both as to securities and
. commodities. We are over the period
when merchants and others were in
- the. pains Of selling goods at lower
prices than they had bought them
for. We are over the period of
credit contraction. In a business
Senke our house is in order and we
are ready for the upward swing just
as soon as certain fundamental
things correct themselves or are cor
rected.
These things are in the process Of
correetion, and from now on we
sbould expect the condition meant
when men speak of better times"
. Unemployment will be remedied by
q the passage Of the so-called rail-
road Gill" and by other means to be
devised by Mr.. Hoover's conference.
All that the government Of the