Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-08-01
HOUSING COST
BIGGEST SNAG
IN RESUMPTION
Secretary of National Credit
Men Says Prices Must
Come Down.
LOWER FIGURES VITAL


executive secretary Of the National Asso-
citation Of Credit Men, in his Aug. 1 gen
eraI letter, containing q review Of bust
ness. financial and economic conditions.
declares the time has arrived for prop
erty owners to help in the liquidation
process.
Housing costs must decline. either
voluntarily or by forcible measures.
Lower prices for materials are promised
and when the promise is fulfilled new
homes should spring MP rapidly" writes
Mr.. TregOe, who continues:
We are impressed with a disturbing
phenomena in housing costs. 1t appeared
that In May, 1920. housing costs were
larger than in December. 1920. a reversal
OF the process IN other costs. Forcing de-
elines isn't a pleasant process In any
Circumstance. and IT would be a part OF
prudence for property owners to meet
the situation and help in the liquidation
process. Housing costs must decline,
either voluntarily or forcibly. Lower
prices for building materials are prom
ised and should accelerate building con-
struction.
SEES TRADE
CONE INVERTED.
I'VE find the novel situation of the re
tail merchant as a general rule doing
more business proportiOnately than the
wholesale merchant. that the wholesale
merchant is doing more business proper
tfonately than the manufacture. and the
manufacturer doing more business pro-
portionately than the producer of basic
materials. The cone is inverted and In
verted in a way which promises a quicker
revival Of business when conditions are
right than if the production of basic ma
terials exceeded the sales 10 ultimate con
sumers. 1t seems to me on a careful OBJ
servation that We have struck the bottom
and are now gathering sufficient strength
TO take the upward turn.
I'm some commodities there is a fairly
good seasonal business. Collections Of
current accounts are not complained OF.
many deferred accounts are still in sus-
pension or IN process Of adjustment
Failures have not increased. The erratic
movements Of the stock markets are not
q good index Of basic conditions. The
suspension Of a dividend will cause
decline in market prices of the stock but
fundamentally It is indicative Of prudence
in the administration Of the business.
PUBLIC FEELING
INDIFFERENT.
a very great difference vas noted be-
tween the mental temperament of the
public today compared with twelve
months ago Then it was that business
was moving about as IN the dark not
knowing what was going to happen and
consumed with 4 great fear. Now there
is 4 feeling Of constructive optimism.
feeling that we have passed through the
worst and must prepare for the better
The last stages Of the recuperative pro
cess are usually quite slow and must
h1 Z
cOmpOsure The need Of keeping ones
head through this process is very great
and business generally must be kept free
from any fear OF apprehension that thing
are not coming right.
There seems TO be also a little clearing
up in the foreign situation. nothing u
great promise. but a trend toward the
solution Of problems aud a revival Of
our exp0rt business. New coming down
to fundamentals. We find the cost Of Iiv-
ing has declined about % Der cent We
ask the question. why hasn't this de
cline been larger. The answer that Ia
Dor costs have not declined even IN pro-
portion TO the decline in the cost Of
living.
LIQUIDATION
MUST LOOM.
1--WE see thus the situation interviewer
into mass Of economic detail forming
one composite whole as related to the
reason for our depression. and the
remedies for its removal Liquidation
must continue. This IS an indisputable
fact in the situation. Confidence must
be restored, and added to these features
strong belief IN the underlying sound
ness Of the Nation and its future. VIII
revive the spirits OF the people confirm
their constructive optimism and put us