Grand Forks herald., 1922-06-12

AsS3 0SSA RAANAAG604 ~ 1lC0l Va W
the fact that he has q better under
standing Of the general situation.
1T was he who suggested, also,
that there seemed to be tendency to
overestimate our dependence on
Europe. He pointed to the five bill
lions of assistance that had been rem
dered to countries across the Atlantic,
one-fifth of which was in the form OF
charity, in support of his statement.
He admitted that Europe's burdens
did react upon our own employment
and upon the difficulties Of our farm
ers and of our merchants, but they
did not prevent our recovery far in
advance of Europe. q recovery which
has been markedly furthered in the
weeks since the convention was held.
Make Real Pruxress.
Building construction, which
was again repeatedly referred to
rs the chief business index, show
over q year ago, and over six
months ago, that it required no
rehcarsA Of building facts to
convince me that real progress
was being made. Seeing was be-
lieving. The change in Chicago,
New York, Washington, Balti-
more, and even in the Twin Cities,
WAS, indeed, quite percep0blo.
There was throughout the fullest
and freest acknowledgment that the
survey Of conditions compelled the
listing of many liabilities as we'll rs
assets on the business balance sheet
among the liabilities. Of course,
were to be found the coal strike, the
textile strike, the bonus uncertainty,
the tariff uncertainty, (and If you
had heard. and also seen, tho senate
discussion. as I did, you would have
been certain Of the uncertainty. i.
price ranges between commodities or
rather lines Of commodities, railroad
rates. (Which have now received
some adjustment). lack Of foreign
trade, Indicated by 800 ocean going
vessels lying idle in the Hudson river).
(Mr. Hoover's qualification Of this
must be referred to later and note
thereof taken), European financial
strain and discord, Russian chaos, In
fation at home, enormous tax bur-
dense showing increases over 1913 Of
AL per cent in Great Britain. 317 per
cent in France. 32s per cent in the
United States. and about the same ra-
ito in Holland. which was not directly
enlisted in the war;, the diversion Of
money into unproductve channels
and tho enormous permanent losses of
the war (amounting to over $50 bill
lions of dollars).
The Assets.
Among the assets, or favorable de-
velopments, the following were to be
noted: Increasing railroad traffic, in
creased railroad earnings, the quicken
ing and stabilizing of many industri-
al lines. decrease in unemployment,
tand its practical elimination in New
York state), activity in all lines of
construction, reawakening of the au-
tomobile industry, (several companies
having reported the breaking of all
previous records for production and
sales), betterins of farm prices. less
ening of the number and extent of
business failures, upward trend of the
stock market, the availability of
money at cheaper rates. (Which might
be expected. however, to go back
somewhat by faID, the Federal Re
ance Of bare shelves which would
force resumption of buying, (evidenc-
ed already by the fact that depart
|, ment stores sales have broken all
records again), the gradual reduction
of wages, (Which always have, and
must of necessity, lag behind prices)
improvement in the exchange situa-
ton, appreciable increases in savings
accounts, the absorption of securities
offered, naval reductions brought
about through the Washington Con-
ference. military reductions, and the
general psychologist change.
III you have watched the workings
Of the Interstate Commerce Commits
sion Of late you will. doubtless, have
noticed a desire to adapt itself to this
policy of the administration Mr.. Ell.
liott, of the Northern Pacific railroad
himself, acknowledged this change in
the commissions attitude, stating
that it was now conining itself tc
regulation of the railroads and re.
framing from attempting to manage
them.
Railroad Situation.
you are all vitally concerns ed
about the railroad situation, and SO
shall present briefly. some Of Mr.. Ell.
liotts figures, some Of the conclusions
Of Mr.. Parmalee, Federal Director O,
Railroad Economics. and also some o,
the accomplishments of the industria
organizations as represented by thu
work Of the semi-annual conference.
held in New York-attendance upor
which constituted my original mission