davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-12-17
Gradual CrotCfh

This practical subordination Of our
common interest In making goods to
our individual interest in making
money produces gravs~ consequences.
But before enumerating them II should
be emphstically stated that the money
economy is doubtless the best form OF
economic organization for promoting
the common welfare which men have
yet devised. This opinion Is based on
the fact that the money economy has
developed ort Of simpler forms Of eco
nomie organization In all the most pro-
gressive nations Of the world, and that,
broadly speaking, this development has
been spontaneous.
No one forced our forefathers in
America 70 give up raising their own
food, making their own clothing and
cutting their own fuel. They changed
from the practice Of making goods for
their own families 10 the practice Of
making money incomes and buying
goods made by others because they
liked the results Of the more elaborate
plan better. In medieval times the
King Of England travelled around the
realm with his court subsisting on the
produce OF the royal manors. When
the King began to commute the labor
services Of his villeins and their dues
in kind into money payments. the viii
leins shared with the King in the ad-
yantages Of a better arrangement.
SO almost all the elaborate maehin-
cry Of the money economy has grown
up by slow degrees because men
J thought they got more goods or better
goods when they worked for money
| than when they produced for them
selves. Tho yilleins have been con-
vetted Into wage earners, the craft
! guilds have given way to the merchant
! and the factory, the weekly markets
where neighbors met to barter have
been superseded by retail shops, bank
ing has evolved from small beginnings
into a ubiquitous business, the joint
stock company has become the domi-
nnnt form Of business organization. all
because on the whole these changes
recommended themselves on trial TO
large and growing sections Of the pop.
ulation. OF course most Of these
changes were accompanied by grievous
| hardships 70 many individuals, but II
the new organizations had not filled
demands numerous enough to make
them pay they could not have broken
through "the cake Of custom"
II must also be set down TO the
credit Of the money economy that Il Is
q marvelousy flexible institution. Il
has been developed in a dozen ways
undreane1 Of by the medieval money
lerder. It's capacity for further devel-
opment and adaptation 70 human needs
has no visible limits except the limits
Of mans capacity for invention. With
that thought In mind let us consider
some ways in which the money econ
omy serves Us III, In the hope that the
engineers and economists may invent
practicable devices for bettering its
| operations
New-York tribune., 1922-12-17

Stock Exchange has an able advocate
and an intelligent interpreter. Dur
ing the course Of q year many groups
Of students and sightseers wander 20
the marketplaee TO observe at first
hand the great whirlpool Of speeulR-
tion. Mr.. Westerheld greets many Of
them, and also carries the gospel Of
tho Stock Exchanges true and legiti-
mate function, as he sees II, to groups
throughout the country before whom he
speaks. Mr.. Westerheld on Thursday
addressed a meeting Of the members Of
the American Association Of Adver-
tisIng Agencies at the Hotel Pennsyl-
vania. After his speech many con
graduated him on his fine talk. One
mad wag remarked: "You were mighty
fair to the Stock Exchange"
The directors Of ?. W. woolworth &
Co. last week had the courage 20 avoid
the spectacular 20 do a sounder thing.
Instead Of joining the gay procession
and declaring a stock dividend. the com
pany used s2o,OOO,oOO Of surplus TO
write down the item OF good will on
the balance sheet from $4,000, 900 20
s3O,ooooOO. When the decision be.
came known, the stock sold OF 5it
points for the day. proving again that
spectators are frequently motiyated
By other considerations than a clear
understanding Of intrinsic values. The
real wealth Of the corporation has
not changed, and is neither greater
nor less than it was before good will
was debated nor than it would have
been II s2o,ooo,o00 Of additional CON-
mon stock had been issued.
Good will has been carried At $780,
100000 since the woolworth corpora
New-York tribune., 1922-12-17
IFS Life History

Thirty-two adult weevils OF average
size placed side By side could bo laid
within the boundary Of one square
inch. It's instrument Of destruction,
the snout, is about one-third the
length Of the body. So far as Is known
II feeds only on the cotton plant, and.
according 70 the chief entomologist Of
the Department Of Agriculture, except
during the period Of hibernation cot
ton is its only host. In sueeinet de-
scrlption OF the relation Of the wee
vil's life history to control, DR.. Smith.
who developed the Florida method Of
control, says; "The weevil passes tho
winter as an adult With the first
warm days Of spring tho wecyils grad
ually emerge from their alternating
places in the moss, leaves, trash. etc,
and seek the cotton fields. The adults
feed first upon the leaves Of the young
cotton plants and then upon the grow
ing tips until the first squares appear.
With the development Of the squares,
eggs are Immediately deposited in
New-York tribune., 1922-12-17
YcnczueIa on Shinmeni.

The Curacao Petroleum Company Of
Curacao on November 10 shipped 7S.-
900 barrels (about 11,lts tons) of
Venezuelan crude oil on the American
tanker Swiftscout, with destination
Fall River, Mass. This is the tenth
cargo Of Venezuelan crude oil shipped
by the Curacao Petroleum Company 20
Fall River during the present year,
says Consul b. s. Raltden In repore
20 the petroleum division Of the De-
partment Of Commerce.
New-York tribune., 1922-12-17
Wesley C. Mitchell Suggests Ways That
Engineers and Economists May Co
operate; Critic Grants That Money
Economy Is Best Yet Devised
for the General Welfare

goods. Bat We have % measure the
progress Of efficiency in money values
whenever we are including goods Of
many different kinds. While We can
afterward correct our ngures for
changes In the price level, they still
remain In money terms-a Hypothetical
money OF constant purchasing power.
And the meaning Of these monetary
aggregates is exceedingly difaeult 70
interpret except when we are compar-
ing one such aggregate with another.
The Money Economy
The various levels Of analysis In
economic investigation are matters Of
profound and practical concern 10 the
engineer as wei as 20 the economist
In considering the national income
Il Is obvious, as previously stated, that
money is important because IL repre-
serts goods, and that goods In turn are
important because they contribute to
welfare. But in the process II pro
duction 40 now organized these rela-
tions are reversed IN large measure.
Production Is carried on more and
more By business enterprises, and busi-
ness enterprises must make money II
they are to keep going. The men in
charge Of q business enterprise may be
hlied with real for public service, but
they must make enough to pay ex.
pebses and something over or they viii
have to and some other way Of serving
the public than by running business.
The men IN charge Of another enter
prise may be engineers interested pri-
marily in perfeeting their processes
and products; but they must keep their
passion for technical perfection within
the limits set by money profits or they
will be eliminated from the rankS OF
business managers
Il Is no disparagement Of business
men 10 say that in business they
subordinate the making Of goods 70
the making Of money. They are COM
peiiyd to do 50 by the system OF which
we all are parts. II they fail to get
their profits they cannot 60 on making
goods. And II is TO the interest OF all
Of Us that business men should get
their profits, az every period Of bxsi-
ness depression proves. For when bust
ness promises losses instead Of profits
production falls of and the national
Income is diminished, IN extreme cases
perhaps by 10 per cent.
But while II Is silly 70 blame any
one for this situation, IL nevertheless
bristles with economic contradictions.
From the national viewpoint money
making Is a means toward making
goods; from the individual viewpoint
making goods Is q means toward max
ing money. From the national view
point the engineer Is the central figure
In production; in practice he takes or
ders from the business man. A com
munity is we'll of in proportion to its
sHaeieaey In producing current sup;
amenities Of life; an individual Is, well
of in proportion TO HIS efficiency in
getting q money Income.
New-York tribune., 1922-12-17
Expansion in Central European Business
Going On at Rapid Rate as Profits Are
Invested in New Buildings and
Plants, American Observer Finds

American customers has little to worry
about" ,..1 g..
working hard, and many factories !. tneIs s,ls
are operating on double shirts lnsIs
Is little visible poverty ana alno1' ~
unemployment. ManufaetuIsIs -
making money and are putting wv"
Profits into tangible properly. a.. 80
"All through Germany ne sa,o'
saw new factory buildings De.us
erected. Even the government mas ln"
building craze. New railroad statiohs
are seen IN many Of the citlesl anJ
there il n vast amount OF roaa ny
street improvement going on. asheo
one OF the large manufacturers tneIe
why ne did not build up his easa sur
plus when profits were gooo.
plied that cash had little yalue my
That with his surplus In eash ne wa
likely 10 find himself muen rene!
much poorcr over night. katner tnhn
chance this uncertainty, he told ne
that he was putting his surplus nv
new buildings, new machinery
equipment Factory expansion N Ger
many is going on at a great rate.
Buying goods In Germany Ior M
ment TO America is not paItieui1u5y
EASY. according 70 Mr.. samstag. ms
Arm has been active In the nermsh
market for many years and after tne
war resumed some Of It's old connee-
lions. The new buyer, going into tne
market for the hrst time or buying N
small quantities, is likely 20 have dii-
feulty, he said.
Ignore Small Orders
asome OF the manufacturers over
there" he said, Showed me orders
and sketches for goods which Amefi-
can buyers had brought them. The
manufacturers laughngly told me they
had no intention Of filing these orders;
Apparcntly the buyers had placed
those orders in good faith and had re-
eeived a nice reception when they
csiIed The truth Is that the German
manufacturer prefers to seii up nis
entire output to one man. II ne can
do so. | found them ready 10 take
care Of their old customers, but eA-
tremely difiident about accepting
orders from buyers with whom they
mad not previously done business.
an, afraid that many buyers have re
turned from the German markets with
tbe conviction that they had made
cood purchases, only 20 realize later
that many Of the manufaeturers there
will disregard these orders entirely"
Belgium, according 70 Mr.. Samstag'
shows the most remarkable recovery
OF any OF the countries that were ae-
tually devAstAted In the war. he as
New-York tribune., 1922-12-17

Radical" "reactlonary" and lib
ersl" are terms frequently employed in
characterizing mon, yet they are loose
ly used, with little attempt at analysis.
The reparations issue is further break
ing down tho distinctions. Many Of
our leading international bankers have
come forward as liberals on the ques-
tion Of what can be done in the mat
ter Of making Germany pay. Politi-
clans, at home and abroad, particularly
in those countries which hope TO col
leet substantial sums from Germany.
though protesting progressivism. have
in many instances said absurd and re-
dictionary things on the subject. .
As for reaetionaries, are those spokes-
men for the farm bloc who want 10
demolish the fine and scientific ma
ehinery Of the Federal Reserve sys-
TEN radical or reaetionary7 In call
ing attention to some aspects Of the
misuse Of words describing the
political viewpoint Of different group,
we don't mean 10 imply that "alps
right with the world" and that there
does not exist among bankers ana
business men a right wing Of moss
backs.
New-York tribune., 1922-12-17
HotU the Plan Works

"The way the German or Austrian
manufacturer works on such contract
is thisi As soon as we determine on
a price, In dollars, based more or less
on the condition Of the raw material
market, the manufactures covers him-
self on raw material for the entire
year. His raw material costs are then
known 70 a certainty. The fluctuations
In labor costs follow fairly closely the
rise and fall Of the exchange; that is,
II exchange advances wages Decline
and II exchange drops wages are in
creased. But. reckoned in dollars, his
labor cost Is more than likely 20 re
main constant, and he is getting dol
lars for his goods. After all, then,
the German producer who can obtain
advance orders for his goods from
New-York tribune., 1922-12-17
Rurnges of Boil WeeuiI
Rousing Cotton Industry
Destruction Equivalent 10 All Cotton Harvested in
Texas, Mississippi, Carolinas, Georgia and Ala.
bania; Methods for Checking Its Spread Urged
By William Whittam

oW shall gravity the injury wrought by the urge "hch
n threatens the clothing mankind be impressed the casual
reader Almost every human being both heiphere carry
inc his share Of tho burden imposed upon the By this noxous thing
War and rs billions commonplace term in current
nrose that millions quantity and value has
become trte Of describing the appalling havoc IN
dull dts let that the basis Of last years yield OF cotton
acre in the United States Mexican boil wee turned into vii
the equivalent cotton harvested the states OF
Ms,pp Texas North and Carolina Georgia and Alabama
New-York tribune., 1922-12-17
Business Cycles

To begin with an obvious point, our
dollar is not a stable unit II is sub
jeet to continuous and wide variations in
purchasing power, and these variations
introduce uncertainty into business
plans, cause undeserved losses 10 some
and confer undeserved gains upon
others Various plans for stsbilizing
the dollar have been proposed-plans
which merit critical study. But this
whole topic is so familiar and its chal-
lenge 10 our inventive power so clear
that this mere mention is sufficient.
Scarcely less obvious is the problem
Of controlling business cycles. Eco
monte history shows that when any ma
tion develops the money economy 70
such a point that a large part Of its
people get their liyings by making and
spending money incomes its industry
becomes subject TO more or less regu-
lar Alterations Of feverish activity,
financial crisis and industrial de-
preston.
OF late yssrs these business cycles
New-York tribune., 1922-12-17
Value and Limitations of
Money Making as incentive
for Producing Goods

have been the subject Of quantitative
Investigation. 20 that our knowledge OF
the phenomenon. while still far from
complete. IA yet sufficient 20 suggest
various methods Of exercising control
over the cycle - methods such as the
systematic scheduling Of business .oper,.
ations with reference 90 anticipated
changes in demand, the long range
planning Of. construction work.. the
launching Of new products and IN
crease Of advertising when business Is
dull, more circEmspect granting OF
credit in periods Of activity. the I'M
provement and wider use Of business
barometers, various schemes Of unem-
ploymont insurance 10 reduce labor
turnover and sustain the purchasing
power Of wage earners in periods OF
depression, and the like.
Most OF these plans emphasize the
policy Of prevention rather than
cure; that is. they seek to diminish
the wasteful excesses Of booms rs tho
best means OF diminishing the severity
OF crises and depressions. All these
plans arc in tho experimental stage.
Engineers, by virtue Of their scientific
training and their intimate relations
with business men, are likely 20 take
an active share In testing these
schemes and perfecting the best
among them.
New-York tribune., 1922-12-17
Place Of Research

For example, II 10 possible to investi-
gate fatigue, 70 grade men BY intelli-
genee tests, TO study the reaetion Of
certain occupations upon health, and so
on. 1t Is true that these efforts 10
carry cumulative analysis into the
realm Of physiology and psychology are
still In the pioneering stage. but does
not the success already attained suffice
At least 20 Justify faith IN future
progress In this direction-progress to
which not only engineers and econo-
mists but also Psychologists and psy-
biologists must contributed For con
venience OF reference, let us say that
this type Of work runs on the welfare
level OF analysis.
The cumulative economist then, and
the engineer who attacks economic
problems are concerned with money
values, with goods, or with some OBJ
jective index Of welfare. As between
these three levels Of analysis there is
no question but that the welfare level
10 the most significant and that the
money level is the least significant.
Indeed, money and goods get whatever
significance they possess only In 80 far
as they represent a contribution TO
welfare. We rate the goods level Of
analysis as more significant than the
money level, because q bushel Of wheat
has a more direct and unAmbiguous re
latlon to welfare than has Sl.25. which
may be the price Of wheat on some
given day
To illustrate the practical impor-
tance Of these distinctions, let us re-
fer 20 the national income. We should
like to reckon this income in terms OF
common welfare, but we cannot con-
eeive 81 welfare 40 a magnitude. SO
We do the next best thing and think Of
the national income as an aggregate
Of commodities and services obtained
by the nation within year. Such an
aggregate we can conceive in bushels
OF wheat, tons OF coal, board feet Of
lumber, ton-miles Of transportation.
months Of schooling, and 30 on. When
we come 10 measure this magnitude,
however, we are forced to express the
different classes Of goods in terms OF
money values. That Is, we make our
computations on the most superficial
level Of analysis and state the ma
tional income IN billions Of dollars.
We are not forced, howeves, 70 stop
short with so superficial a result, for
we can work back again from money
20 goods. Thus, when our money esti-
mates Of the income OF the American
people show an increase from SSS,oO0,-
100000 in 1914 70 $4,000, 100000 In
1916, we can analyze this nominsl
gain Of 81 per cent into the part due
70 the rise Of prices and the Part due
70 the increase OF physical output be-
tween q year Of severe depression and
a year Of great activity. By applying
appropriate index numbers Of prices
70 the various sections Of the data we
can get revised estimates Of the ma
tional income IN dollars Of constant
purchasing power" These revised fig
ures come out as $4,000, 900 900 In
1914 and S40,700. 100000 in 1916. That
10, the estimate Of the two-year gain
in national income Is cut down from
New-York tribune., 1922-12-17
HnHGtionGry Methods

For most purposes this lower esti-
mate Of the increase in the national
income IN which the fluctuations OF
prices have been cancelled as accu-
rateiy as may be strikes us as more
significant than the unrevised esti-
mate. IL Is easy 10 increase the
national income 70 any limit by none
tary inhation-easy, and harmful 70
welfare.
Where then DO We stand In our
Efforts 20 treat economic problems by
quantitative methods? What we seek
% promote Is welfare, but welfare we
cannot measure except In certain
details where objective indexes Of
physiological OF Psychological condi-
tons are available. So we work on
the assumption that an increase In
commodities and services generally
brings with II an increase OF welfare.
II 10 on that assumption that We seek
70 promote sfaeisncy IN producing
New-York tribune., 1922-12-17
British Oil Ro-exports Gain

Re-cxports Of petroleum products
from the United Kingdom during Octo-
Der and the ten months eled October
we're considerably above the CORE,
spending 1921 figures, lubrleatlng oil
being the only item 10 register an ap-
preciahle decline. Marked increases
are noted In the shipments Of motoS
apirit and fuel oil.
New-York tribune., 1922-12-17
By Wesley c. Mitchell


Professor Of Economics at Columbia
Unfversity, and author Of "bEs1-
ness Cycles" etc.
TIME process Of producing goods
has been viewed in three
n ways. subjeetively IL has
been treated as a process Of seeking
70 crafty wants. Industrially 1t IS
a process Of making goods. From
the business viewpoint 1t is a process
Of making money.
Corresponding TO these three ways
Of viewing one and the same process
of production, there are three levels
Of economic analysis--the level OF
satisfaction, the level Of goods and
the level Of prices.
Economic theory long cherished che
ambitious design Of penetrating 70 the
sstlsfsetion level Of anslysis- It
sought 70 explain most economic phs-
nensna In farms Of balancing OF
subjective sacrifices assinst subjsetivs
satisfAetion. IN 20 doing 10 became
Itself srbisGtivs.
So long a. II followod tAat tAek II
was not possible for soonomists 70 use
cumulative methods. For. despite much
searching. no satiSfAetery units have
beer found IN which 10 reckon either
mems sacrifices or their satisfactions.
And without units, Of course, one can
not east up totals or strike averages.
At best this level Of analysis Yields
but q dubious explanation Of why men
behave in certain ways-"dubious" be-
cause modern psychologists have dis-
carded for the most part OF the motion
suit OF sstisfaetions.
Gradually dropping this inefficient
type Of speculation, economists have
recently begun to develop a more OBJ
ieetive type OF work, a descriptive an
alysis Of economic behavior, as op-
posed 20 a subjective explanation Of
choices. IL is this shift which enables
them 20 use quantitive methods In
lhclI luoOIollChl luQulIlc8. Nc cannot
measure sacrifices and satisfaetions,
but wo can count goods and reckon In
money. Within a limited range Of
problems We can also 20 behind COM
moditiss and prices 70 something more
fundamental and yet susceptible Of
measurement-not sacrifices or salts
factions, but some objective index Of
physiological conditions or some OBJ
jective record Of behavior.
New-York tribune., 1922-12-17

+ P.'MoRGAN called upon Secretary
- Hughes at the State Department
on Wednesday.
Probably certain Congressman from
the rural districts were shocked at the
incident. They expect no willingness
TO serve the larger public on the part
Of Wall Street men.
New-York tribune., 1922-12-17
Along the Higha6ays of Finance


cannot be expected to give up several
days and ten times his annual divi-
dends on his shares for railroad
ticket to so to the gathering.
What then can be done 20 protect
the small and scattered security
holders7
They are necessarily dependent on
the good faith and spirit Of fair play
Of the dominant interest in the cor
poration.
Two other factors can help. First,
strong minority group with the ca
paeity and the willingness 10 check up
on the management and. n necessary.
report directly 10 stockholders any
considerable abuse Of authority. Sec
ondly, a vigilant, fearless and critical
press.
The laws and lhw-enforeing officers
can be Of assistance, but we were
thinking primarily Of misuses Of power
which did not happen TO be Illegal.
The Clayton act which sought 70 end
interloeking directors has not retolu-
tionized American business. The chief
beneficial result OF the set OF restric-
tions made respecting directorates Is
that they relieved men Of large affairs
Of the temptation or obligation TO
serve on more boards than It was
humanity possible 10 remain wholly
familiar with. The question as 10
whether directors ought to be paid
substantially for their services fire.
quently reeurs. One possible way
would be TO have on each board
one paid director, independent Of the
officers, who would be perpetually on
the Job as fact finder for his col
leagues.