The daily star-mirror. (Moscow, Idaho) 1911-1939, 1922-01-10
ECONOMY, THRIFT
Are NECESSARY
J. X. MCCORMACK SAYS COUNTRY
STARTING ON LONG UPWARD
PULL BACK TO NORMAL.

J. K Mccormack of Spokane, presi-
dent OF the Union Securities company
and president of the First National
bank at this place, is in Moscow to-
day in attendance at the annual
stockholders meeting of the Moscow
institution. Mr.. Mccormack, with his
extensive banking connections thru
out the Inland Empire and in Spo-
kane, is one of the leading financial
men III his district and is closely in
touch with financial conditions
throughout the country. When seen
by a representative of The Star-Mir-
ror today, he said:
'The wheat district known as the
Palouse country, where there is new
er a crop failure, is probably in better
financial condition at this time than
any other part of the entire country.
While the price of the farmers pro-
duct has been low, there has still been
d somewhat substantial source OF in
come, as compared with many sec
tions. The PalOuse country has been
free from bank failures through the
readjustment period, and should be
able TO regain it's normal state of
prosperity more quickly than the less
favored sections.
The world has been sick Financially
and is now convalesclng, very slowly
however, and it will take consider
able period for conditions to get back
to normal The big cloud has passed
by, in my belief, and it is necessary
for each individual to do all that he
can for his community and for his
associates in the community. By
iaip brift
district should be we'll on the way to-
ward fairly prosperous times within
another year.
1.-THE cause of our financial troubles
the world over is too much indebted
ness. This is true with nations, and
all government subdivisions, as we'll
as with the individual. All are carry
ing too much of financial load.
However, panics have come and pan
jcs have gone and this territory has
enjoyed fair measure of prosperity
through it all, although individuals
have suffered through excessive in
debtedness. The financial loss OF the
individual who has gone. in debt In
iudiciously does not interfere with the
ultimate prosperity of the community,
especially in a country as productive
as this. A stout heart and thrift are
the two essentials now IN pulling
back to better conditions.
Il know that the agriculturist in all
lines has produced at loss the past
year and his purchasing power has
thus been eliminated, especially as to
Iuxuries. This, of course, affects all
lines OF business. The demand Tor
the products of the factory are thus
lessened and the factory employee is
out of job, and his purchasing pow
er is limited and SO on down the line,
to a certain point, where there must
be a change. believe that this point
has been reached and that we are now
due to climb slowly and perhaps
somewhat painfully back up the
grade. In making this climb, how
ever, we are getting back to better
conditions, while, until very recently,
we were travelling the other direction.
The farmer will produce the 1922 crop
at a much less expense than for sew
eral year past, and this will find his
condition better at the close OF this
year than at the close of 1921. Last
year he planted his seed when the
price of wheat was above 81 a bushel,
and when he harvested his crop could
get but 80 cents or less for it.
ITO me it is rather remarkable that
the country has been able to pass
the early readjustment period
without more serious consequences.
The danger of any big cateslysm is
past. The big financial interests,
through efforts which the public per-
haps did not realize, have at several
times been able to meet conditions {
which, had they not been checked, +
would have meant a financial panic OF i
disastrous consequences. Now, men
in touch with financial matters are {
feeling better over the situation and l
believe that all that is needed is a a
slow, steady pull back over the rough s
grade to the beaten road to pros
perity. f
'sThe most encouraging feature is t
hat to a great extent, we have taken |
our loss, and will from now on pro- t
luce for the market, whether it be 1
wheat and other agricultural pro- t
Iucts, or the products of the factory, 0
1t a cost somewhat in keeping with
he public purchasing power. t.