The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1921-05-12
BUSIN SIS

Sioux City Journal-The best sign of
the ultimate business recovery of the
cour y is the ~hopefulness expressed
everywhere in all lines. This steadfast
belief is held in the face of the slow
movement back 10 what the new nor
NAL is destined TO be, and ii can be
seen that such a feeling of optimism
Will influence and accelerate the gen.
eral trend. Interests large and small
that consider the outlook promising
will contribute 20 the movement for
better business, basing their activities
on their judgment.
There is a better trade trend, ac-
cording 10 the federal reserve board,
which, recognizing in a cold, analyt-
zeal way some of the features that
are retarding recovery, does not ex-
press as much of the hopefulness as
the interests themselves. This can
be ascribed very naturally 10 the Off,
cial view OF things which deals more
with apparent facts and leaves specu-
latiye thoughts to the business lead
ers. The board is not without the
power nor the desire 10 criticise, how
ever, and il does this in a constructive
manner, calling attention 10 the fac
tors that are delaying business recov-
cry. It's conclusion that increasing
appreciation of the nature of the re-
adjustment process in business cir.
cles and the community at large is
focusing attention upon the factors
that are delaying business recovery
and Is promoting discussion with a
view 10 removing obstacles and expe-
diting recovery ought to urge the
public TO concentrate its study Of the
conditions and also 10 contribute
whatever is possible TO help recovery.
The board considers high transpor.
tation charges, wages and coal and
steel prices as the principal factors
that are retarding adjustment. The
Journal has contended for weeks that
business recovery will not come until
railroad freight rates are reduced to
a point that will encourage the freer
movement of goods. II also recog.
nized that wages in some cases would
have TO ONE down and that profits
would have to be cut. Steel prices
recently were reduced, but not enough.
Coal is high for industrial operation
because of continued high operators
prices and high freight rates which
make 1t difficult 10 lower overhead
costs in industry and consequently TO
reduce wholesale prices on products.
If adjustments were made affecting
these things directly, there would be
easier markets Immediately with a
quickened flow OF goods Of all char
acter.
The buying movement for some
time has been freer in the cities than
in the country, due to the retrench-
ment policy Of the farmers, who have
the sound argument that they are
paying higher prices for what they
buy thar what they get for products
sold. The government crop reports
for the year are full of promise, the
weekly statements showing conditions
exceptionally favorable. The agrlcul-
tural yield is confidently expected to
be bountiful and by the time of the
harvest transportation rates are sure
to be lower, which will be helpful to
the farmers and the country at large.
The financial centers are counting on
early action by the railroad labor
board in scaling down the wages of
rail workers. In some quarters 1t is
believed the workers will accept a
lower wage without disturbance of the
lines in their operation. On the
whole, the railroad situation is not
considered as being too difficult for
solution. That is shown by the high
values railroad stocks have retained.
The Great Northern-Northern Pacific
bond issue of $3.50, 600, 900 at 6h per
cent was oversubscribed a week ago
In a Wall street rush that %eloquently
told Of the confidence in the securities.
Dun's weekly review says that the
forces Of rehabilitation are operating
and that the general outlook Is better.
Corroborative of The Journals view
that ho~pefulness Is the best sign for
recovery, Dun's says: The strength
ening OF sentiment, upon which bust
ness recuperation so largely depends.
has continued and confirmation of
past eXpectations is here" When the
entire country becomes fully con-
vinced that business conditions ought
to be improved and that they can be
improved, the improvement will be a