Evening journal., 1922-01-11
BUSINESS IS
ON THEUPGRADE
New York Economist Says
People Bought to Many
LuXSJieS
DENIES STRIKE
AMONG BUYERS

American business Is recovering,
according to Joseph French Johnson,
lean OF New York University School
IF Commerce and president OF the
Alexander Hamilton Institute, who
Was the speaker before the Hercules
Club in Trinity Church parish house,
last night Many OF the club MEM
bers and their wives attended
The cause Of the business slump
m the middle OF the year 1920.
Mr.. Johnson said. was "the spec
lacular and artificial imitation OF
,redit and the resultant rapid rise of
prices which followed the armistice
and continued until the middle OF
1920.
Nineteen hundred and nineteen
vas boom year, the like OF which
ihe United States had never seen
before, and no human agency and
no far-sighted intelligence could
have prevented the rapid decline OF
prices in the last half of 1920, and
he consequent Business depression.
Instead OF hunting for somebody to
blame. we all ought 10 be thankful
hat the country suffered no more
han it did, and that American busi-
bess is now rapidly returning to a
uate OF normal prosperity.
Il disagree with these prophets
who say that American business will
begin 10 recover faster toward the
md OF 1922. II Is already recover
ng. The statistics OF business show
steady Improvement since last
mmmer There is increasing pro-
iuction in several OF the most i'm
,ortant lines OF industry and a stead
ly lessening amount OF unemployL
nent. There is an abundance Of
oanable funds.
THE wages OF labor are slowly.
but surely being adjusted to market
prices. The prices OF comm odities
have ceased TO decline. and have
reached a level which SENS likely
10 be maintained for several years.
American business has emerged
from the depression period OF the
business cycle, and is now moving
steadily upward on the road to
abounding- prosperity. In a few
rears history will doubtless repeat
itself. profits will be excessive. an
crest rates win tighten and another
crash will come. Let us hope that
,ur bankers and business men have
earned something from their ex-
periences in 1919 and 1920. and cali
halt on tie next expansion OF
.redit. in time TO save themselves
rom such an awful jolt as that
rom which they are just recover
ng
THE consumer did not go on
Iirike in 1920. He simply stopped
,uying because he had spent all his
money and Liberty Bonds for auto
mobiles for himself and silk stock
ngs and fur coats for his wife.
Thrift is the one word that you will
tlways find on the sign board that
points TIE way TO prosperity,
whether individual or national.
American business broke one. or
perhaps both legs. when IL took that
umble In 1920. and It had TO go on
;rutches for a full year But Il is
)ut OF the hospital now and has
brown its crutches away and does
lot need any assistance from bus
ness doctors of any kind. Just as
here are forces in the body physi-
|, ,logic which makes for health. so
ne wisest physicians give little
Medicine so there are forces in the
,ody economic. which In a period
n business depression work most
naturally and vigorously for the re-
urn Of prosperity Those forces
ire hard at work now and there are
ibundant signs that they are work
ne successfully"
The next meeting Of the club will b,
January 80 when tEe speaker will
,e Governor Norris. Of the Federal
Reserve Bank i'm Philadelphia
Members Of the Rotary club. the
Siwanis club and other organiza-
ions are invited to attend.