Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-15
Upward Trend Marks
Business With News
of Near East Peace
By The Wells DIckey Company

There was a distinct Improvement In
sentiment throughout business and
banking circles during the past week,
largely because of the better tone in
foreign affairs. At the close of the
week previous it had been generally
believed that ever the slightest in
discretion on the part of Turkish
troops in Asia Minor might preclpl-
tate another war in which the Euro
pean nations might eventually become
involved, so the negotiations between
the Turks and the English looking
toward peace were welcomed in all
ouarters. In nominal times troubles
such as have recently arisen in the
Near East would have been little cause
for concern, but the present disturb
ance was of real significance because
the state of Europe as a whole Is so
uncertain at present and subject to
upheaval because of the slight recov-
ery which has taken place since the
close of the war.
The security markets in America re-
acted forcibly under the stress OF the
foreign difficulties, but upon the an
nouncement of the signing of a peace,
bonds and stocks both took a decided
swing upward, reflecting again the gen
eral confidence in conditions as they
exist in the United States. Reports
from different sections of the country
! indicate that production is again being
| speeded up. Certainly there is every
| reason for the expansion to progress
| since demand is high and there is lit
| tie or no stock of goods on hand IN
most lines. The only recourse then to
| satisfy these demands is increased OPP
erations and these can be undertaken
more confidently right now even
though there is still a serious cal
shortage.
Outlook Favorable
Here and there, there are also re
ports of wage increases, and these too
will add to the national PURCHASING
power. so that the outlook for thu
winter is favorable indeed. Business
! has been making steadily increasing
demands upon the money markets, al
though the aggregate of new loans a
present is far from what it was a yea
or SO ago. In spite of the CONSTANT!
repeated warnings of a new Imitation
ery period there is little evidence a
present to warrant any fears, MOI
should there be, because imitation al
ways comes at @ time when there ma
been an expansion which is carried pc
yond the line of normal. and this I'm
of normal cannot be held as deyeloplni
until after production has reached tn
point of capacity, and when furtne
demands for capital are used slmpl
as a means of boosting prices sti
higher. of inviting speculation and un
healthy competition. Looking at ]
from this angle it would appear tina
we are now in q progressive initia
step in business recovery and far re
moved from any serious secondary IN
flation.
1t must be recognized that the tend
ency of prices is upward, but this up
ward trend is not the result of specu
lation, but Of an increase in the natu
raj demand. So far as present cond1
tions are concerned q rise in commodi
ties was to have been expected If TO
no other reason than as a natural re
bound following the sharp drop whic
took place during the readjustment pc
Rod. a drop which in many cases wer
below the point at which business coui
be conducted p~rofitably all around.
Bankers Clarity Thought
For several decades the America
Bankers association has been q lead
ing influence in formulating America
, economic policies. The first resolutio
ever passed by the association in 1877
demanded the resumption of speci
payments on our deprecated greer
back currency. The association fougf
strongly for the gold standard in 1S9'
1t supplied the driving force for tt
currency reform in 1907, leading u
to the formation of the federal r.
serve system. In 1920 it went strong
| on record as opposing Irving Fisher
plan for a stabilized dollar ar
throughout its entire history it has bee
a force for sound economic and final
t cial progress.
In 1922 the association forgets fl
yaa time it's insular problems and col
: siders matters of broader concern, ha'
G ing to do with inter-allied debts al
reparations payments. The distil