Arizona republican., 1922-02-02

1Ik tN6n1Ny liA AllC lNs - W. @AA
There is nothing very exciting in
sight for 1922; there is nothing
gloomy in sight for 1922. 1921 has
given a good account of itself in car
rying on the great work of deflation
initiated in 1920. 1919 hit the sky
i'm reckless expansion, reckless spec
ulation and reckless spending.
Then 1920 set its feet squarely
against all this; the shock TO busi-
ness and TO the country was like
that to the passengers on a fast
speeding train when the air brakes
are suddenly and savagely jammed
on.
In its strong, decisive action 1920
paralyzed industry, obliterated spec
ulation and spread gloom everywhere.
Ingenious finance crashed to earth in
q day, a tangled, unrecognizable mass
of avarice. The mutterings OF de-
spair, the cries of broken hopes and
broken fortunes rang throughout the
land. But 1920 never wavered. lis
business was to save America from
industrial. commercial and banking
collapse. 1t went straight on with its
work of deflation TO the end of its
days.
Then its successor. 1921. shouldered
the burden and, considered by and
large, has made a good job of it. II
it had succeeded in debating the
wage scale there would have fol-
lowed automatically deflation in
transportation costs and in all costs
of living. House rents and coal and
light and food stuffs and wearing
materials would have got back to
pre- war prices. Its failure in respect
to the wage scale alone robs 1921 of
the glory of genius. or only it could
have succeeded in bringing labor
costs back to normal. industry every
where would have sprung into activ-
ity and general prosperity would have
gladdened the entire country.
But while failing to achieve all we
could have wished for it 1921 is en-
titled TO great praise and great honor
for disa sters averted and for gen.
orally cleaning up the debris of the
wreckage of 1920. 1t e-established
our banking centers on a sound basis,
and this. in the overstrained condi-
ton resulting from the 1919 orgy, was
a big piece of work. 1921 wrote down
wrote off frozen credits in the big
fields, disposed of vast stocks Of
merchandise that it's predecessor
failed to move, gave us easy money
dL ICdSOfldDie lflACItSl rates anu 81
stabilized our point of view that in
large measure we have readiusted
ourselves TO life in the valley with
its calmer sense, its saner economy
and sounder realization of the philos-
ophy and economies of life.
1922 takes up its work under con-
ditions enormously more favorable
than those it's predecessor had TO
face. The dangers that bulked big
a year ago in the eyes OF those who
knew, no longer exist The life blood
Of commerce and industry and bust
ness is money. A year ago our big
banks, the mainstay of our economic
life. were staggering under colossal
burdens. Whether they would carry
through or not, whether they could
carry through or not, was the prob
lem that disturbed the government
overstrained situation Industry was
stalled. incomes were dwarfed and
shriveled. but the government had to
have money and the bankers had to
furnish it. Manufacturers. rner-
chants and shippers had to have
money and the bankers had TO fur
nish it. Interest on railroad bonds
and all other bonds and on mort
cages had 10 be paid and the bank
erS had to furnish the money TO meet
these payments. The building trades
had to have money. the cotton grow
ers had TO have money and the vast
farming industry had to have money
and the bankers had to furnish It.
Payrolls in the industries had TO be
met and all other payrolls had to be
met, overhead expenses had to be
met, vast taxes bad to be met and
the bankers had to furnish the
money. Overextended enterprises had
TO be carried by the banks Frozen
credits and slow credits. the inevi-
table fruitage Of the wild plunging
and spending Of 1919, had TO be con-
tinued and the bankers had to carry
the burden.
In this situation and with a wide
aggregation OF weak and dangerous
spots in our financial, industrial and
business structure that came 10 loom
large. the outlook in the trying
months OF retrenchment did not
make for optimism except that grim
optimism which stands calmly buoy
ant and immovable in actual danger.
II is a heroic and magnificent piece
OF work the American bankers. with
the help Of the National Reserve
Sank system, have done in a crisis