South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-03-26
HOOVER WARS UPON
DEPRESSION CYCLE
Periodic Change Of Business
Conditions Is Object of
L. ;. Conference.
Special 20 The Nsws Times
BA HARRY HUNT.

H1 HARRY HUNT.
WASHINGTON. March Z5-As an
engineer not as secretary OF COM
merce. Herbert Hoover has set under
way study az how % control or
eliminate the business cycle" which
now swings the nation alternately
from periods of prosperity TO had
time levels ~ depression and uncm-
-plogmeut
j st "A conference called for wash
~iusoa March 81. representatives Of
trade associations win Dee asked 20
cooperate iu the study and assist IN
carrying out whatever final recon-
mcndations may be made
Hoover hopes 90 produce a gently
Undulatng plain Of general prosper
ity
The new undertaking is an out
growth Of views and material devel-
oped 0y Che presidents uuemplOy-
mcnt conference held last fan.
Convinced that only sane and sci-
entihc control Of the economic fac
tors entering into the recurreut ups
and downs Of business can solve the
problems that conference undertook.
Foundation an appropriation Of $50
600 20 finance an expert inquiry into
how such control could be effected.
Then he secured Wesley G.. Mitch
ell OF the National Bureau II Eco
nomic Research, OF New York 10 di-
rect the invesig cation. with Edward
Eyre Hunt as right hand assistant
To Take Six Months.
All sorts Of national business. So
cial and labor agencies will con-
tribute 90 the study which is ex-
pected TO consume about six months.
In setting the inquiry under way.
Hoover says:
There is a solution somewhere,
and IT'S working out wiz be the
= greatest blessing yet given 10 our
economic system. both 20 the en-
ployer and the employe'
The viewpoint from which the ex-
perts who are % study the situation
approach it is set out by Hunt, who
viii be secretary Of the committee.
Unemployment on a vast scale is
always a result Of business depres-
sion" says Hunt The problem of
unemployment. then. is only a part
OF the larger one of preventing or
mitigating alterations Of business
activity and stagnation.
THE business cycle is marked by
peak periods Of boom between val
leys OF depression and unemploy-
ment.
Penalties of Booms.
THE peak periods of boom are
2 az
extravaganza IN living, relaxation in
effort wasteful expenditure in in
dustry and commerce.. with Conse-
quent destruction Of capital
'The valleys are marked by busi-
ness stagnation, unemployment, and
suffering.
Both these extremes are vicious.
and the vices of the one beget the
vices OF the other
1T IS the wastes. the miscalcula-
tions, the Embellishments grown
rampant during oooms that make in
cvitable the painful process of uqui-
dati0n.
The most hopeful way TO check
tine losses and misery of depression
IS therefore to check the feverish ex-
tremes Of prosperity And the best
time to act is at a fairly early stage
in the growth of the boom!"
Organizations Active.
Uniting in an effort TO chart a
pleasantly level landscape for Amer
ican business. under Hoover's new
program, VIII be experts from the
Federated American Engineering So
cieties. the Department of Com
merce. the Department Of Labor. the
United States Chamber Of Commerce
National Bureau Of Economic Re
search. the Bureau of Railway Eco
Monies the Russell Sage FOunda-
ton. and many others.