The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-06-01
BANKER PREDICTS
BETTER BUSINESS
Famous Financier Points
to Reasons for Coming
Revival
DEMAND IS GROWING
Production Stimulated, but
lStocks on Hand Are Dis
appearing, He Finds

(Editor's Francis H. Sisson,
vice president OF the Guaranty Trust
company OF New YORK, one of the
largest and most powerful financial
Institutions in America with bpnnchrs
around tho world, has an optimistic
moPsngc here, q message that should
be studied by every financial power,
great or small and one that should
he read and absorbed by tho gen
eral puhlicD
Dc.pito the continuance Of certain
adverse factors, such as the coal and
textile strikes, and tho unscttllng
psychological effects OF the proposed
bonus and tariff Legislation, as we'll
az European problems, the business
outlook is decidedly more promising
than ~ tho beginning of this year
For several months after tho peak
of initiation had been reached aud
rCadjustmCnt was begun, Improve
ment wna more pronounced In tho
banking situation than In the field
OF production and trade. This was
to bc expected. Not until tho
STRENGTHENING of the credit structure
had made considerable progress was
the basis laid for any marked de-
gree Of general Industrial revival
Meanwhile production costs In many
lines were considerably reduced. due
TO somewhat more reasonable wage
scales aud lower prices for raw ma
terials.
In addition to the Increasingly ia
vorable position of tho banks as
whole. an expanding volume OF pro-
duction, greater than can bo nc-
counted for by seasonal variations,
HAS been sustained for some montha.
This industrial progress, following.
IA 81 lah ~
credit liquidation. has substantial
bases for continuance.
Prices Seek the Normal.
A favorable factor OF major sig
nifioanco In tho course OF commodity
prices In recent months. For nearly
ayear average wholesale prlces have
been fairly constant. Individual
prices. II IL true, have fluctuated
sharply ia some cases, but the chief
movements have been such as to re-
duco the wide disparities In relative
levels. The appreciation In the value
of cotton, grains and other agrlcul-
tural products, for example, has
done much to restore the balance
between the buying power OF the
farmers and that OF other elements
OF the business community. In turn.
banks In the south and west bene-
flied greatly, either through tho ac-
tual liquidation of loans or In
creased assurance that customers
Will be able to meet their obliga-
tions. The comparative stability Of
general wholesale prices for nearly
a year. has induced a marked degree
OF confidence that for some time
present price levels will be eus-
tained, or, at least. decline II ut all.
gradually. This is reflected In an
Increased volume OF forward buying.
tfThe pronounced building move
It,ent throughout the country In both
acause and an effect OF better eco
nomic conditions generally In the
United States. Likewise, the recent
improvements In tho automotlve In
dustry Is more or less symptomatic
of business conditions as n whole.
II is also of considerable slgnifi-
oance that the railroads are pMpar-
Ing for increased business activity,
a. indicated by tho number OF freight
cars and locomotives contracted for
thus far this year. Orders for equip
rnent have recently been unusually
heavy.
That we have passed the peak OF
business readjustments In evidenced
by the gradual but steady decline IN
the number OF commercial failures
and the amount OF liabilities In
volved
Production Stimulated.
n Tho prolonged period OF sub
normal production In most industrial
hncs has permitted the utilization o
accumulated stocks OF commodities