Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-12-31
BUSINESS HAS
FINE PROSPECT
FOR UNFOLDING
Foundation Already Laid for
Extended Activities in
1922.
BY FRANCIS III. SISSON
iVce-President Guaranty Trust Com

nany of New York.
The year 1921 has marked a turning
point in the reaction against imitation
And there are multiplying evidences that
business activity in general has been
for some months gradually emerging
from the trough Of the depression, al
though the increased activity in the
fall has been in part a response to sea
sonal demands. For the most part, how
ever, current industrial production does
not yet fully reflect the substantial i'm
provement that has been effected In the
fundamental business factors, such as the
decline IN interest rates, the liquidation
of bank credits, the using up of accu-
muated stocks of commodities and the
comparative sterilization OF prices ut
reduced levels. Nor has domestic bust
ness yet had time fully to reflect the
favorable political developments of re-
cent months in the international field and
the improvement in economic conditions
abroad particularly In Europe.
Accordingly, while some industries
have not completed the processes of
readjustment following the period Of IN
fiation. others have maintained for sew.
eral months increasing rates Of produc-
ton The foundation has been laid for
Il
ness activity in 1922. At the outset the
volume of production and trade IL act
uaIly greater--when compared with that
Of year ago readily appears from
the statistics Of values, because OF the
great decline in prices.
The rate of recovery in general busl
ness in 1922 will PROBABLY somewhat ex-
coed the moderate progress OF recent
months. although the most pronounced
advance may not .naterialize until the
economic position of the farmers next
fan can be more definitely foreseen. The
price movements Of the year, whatever
the general trend may be. win probably
being the value Of agricultural products
more nearly iato normal alignment with
the values OF other commodities with,
Of course favorable effects upon the
purchasing power Of the farmers.
II IS possible 20 retard materially the
business advance which s. In prospect.
The needed revision Of our tax laws
has not been om9leted. The excessive
surtax rates have demonstrated their
capacity 20 divert large amounts Of cap
itaI from ordinary business undertakings
a. tax-exempt public securities. Failure
80 reduce these rates 10 reasonable liinlts
would seriously restrict the employment
Of capital in the maintenance and de-
velopmcnt Of industry. A further bur
deulng Of the taxpayers by the imposition
az taxes to provide funds with which to
pay a general bonus to eI service men
would also prove depressing factor ot
major significance. Moreover. a. a time
when our foreign commerce needs 70 be
encouraged in every helpful way unwise
tariff Legislation might promptly undo
much that has been Accomplished In re-
cent months in the re-establishmeut OF
the bases ~ sustained prosperity.
The likelihood IS that the general trend
Of commodity prices. on the whole. VIII
be downward for soma years although
for short periods they may remain near
ly stationary or Increase somewhat.
An adjustment OF the Allied debts 10
the United States Government involv-