Evening star., 1922-02-18
better BUSINESS
PROVED BY FIGURES
President Harding Pleased by
Facts Regarding Domestic
and Foreign Situation.
BY DAVID LAWRENCE.

and Foreign Situation:
BY DAVID LAWRENCE. ~,
Business is better. President Hard
ing says SO and offers figures and sta
tistics to confirp his optimistic view.
Heretofore his expressions about the
business situation have been general
in character and tinged with a vague
hopefulness that the depression must
sooner or later como to an end. Now.
however, with a smile Of happiness
on his face, the President takes oc-
casion to analyze the latest data re-
|ceiyed by the controller of the cur
rency.
Not Anxious to Claim Credit.
The President explained that his
purpose was neither political nor par
tisan. Mr.. Harding Is no more anx-
turn in business affairs than was his
dministration ready to take respon-
sibility for the economic depression
which became acute in the hrst six
months Of his term of ONCE.
The day Is passing when politicians
are claiming that. that tney b-in are nrosners a9ls ny
ity when at the Same time 1T has been
demonstrated that the policy of a
government does not always Dear
relationship to economic FACTORS OF
worldwide extent. This doesn't pre-,
sorts Of claims, but the shrewd lead
ers no longer try to take the credit
for an upward turn In business condi-
tio4s.
Fighting the Pessimist.
President Harding. however. has
another object in making 1t plain to
the American people that the data in
show a marked Improvement in the
credit situation. He wants to Offset
the apprehensions Of tho spessinist
who can create a psychological situa-
tion that will hurt business. There
are still many business men In Amer
lea refraining from doing certain
things that would benefit themselves
and the country. but who hesitate on
account of "the business outlook"
For this reason the government does
not mind interpreting the business
outlook.
The controller Of the currency.
whose duty 1t is to issue regular
calls for statements from the ma.
tional banks Of the country, has had
nothing to boast about for many
gradual and steady. but 1t never
could be called pronounced. When
he found at last that the peak Of the
depression, SO far as the banks OF
the country were concerned. had been
reached and that the statement reg
istered for the first time "a very sub
stantial upturn in resources" he d.
rected the attention Of the President
and his cabinet to 1t, and when Mr..
Harding met the Washington corre-
spondents he had copies of the state
ment for their examination.
Process Of Liquidation.
"It demonstrates" read the state
process Of liquidation has been pro-
ceeding at such an excellent rate
that it may fairly be said that we
are well on the road to getting the
frozen credits thawed out In this
! regard, indeed. it Is by far the most
| made since the phrase frozen credits
was invented"
Even more promising is the data
available at the Office of Eugene
Meyer. jr., managing director Of the
War Finance Corporaasion; s.!;cs,+nrIy NO, only
conditions reported. but the repay.
ments on recent export loans and
other credits advanced for domestic
farm purposes are better than any
beginnings Of an export trade are no
ticeAble. Foreign exchange rates have
held back export trade. The passage
Of the bill permitting President Hard
ing to negotiate with the allies for
the payment Of interest and principal
ON the war debt is expected to bring
an even greater improvement In ex-
change and consequently In export
trade. Recent advances in the prices
Of agricultural products are attrfbut.
i ed by many observers here to the ap-
pearance again Of an export trade.
Hope for More Improvement.
The most interesting development
Of a political nature in connection
with the improved conditions-if. in
deed, matters international can be
called political-is the way the do
mestic credit situation as well as the
upturn in the prices obtainable, for
with the betterment Of exchange
rates, which, in turn. area reflection
of better economic understandings
between Europe and America Al
though for the moment the United
States government has its own Pc
culiar reasons for not wishing to go
| to the Genoa economic conference, the
administration would like to see the
United States represented there. They
think 1t would still further improve
exchange relationships ana bring
America the export trade. she needs
| as an outlet for her manufacturing
and productive enterprises. The rela-
tionship between political stability
In Europe and American economic
prosperity has been slowly but surely
used to think q policy Of economic
isolation was not only desirable, but
safe. The advocates Of international
cooperation are growing In number.