The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-06-30

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anrrER BUSINESS 10 AHEAD. SAYS
BANKER - FAMOUS 11NANC1DR
POINTS OUT Dun RETURN TO
PROSPERITY AND N0RMALCY.
BY FRANCIS H. sIssoN.
Editors Note.-Francis H. isson.
vice president Of the Guaranty trust
Company of New York, one CT the
largest and most powerful hnaciai IN
stitutions in America with branches
around the world, has an optimistic
message here, a message that shouio
be studied by every financial power
great or small and one that should De
read and absorbed by the general
publicly
DESPITE the continuance OF certain
adverse factors. such as the coal ana
textile strikes, and the unsettltng
psychological effects of the proposed
bonus and tariff legislation. as well
AZ European problems, the business
outlook il decidedly more promising
than at the beginning of the year. For
several months after the peak Of In
Aation had been reached ana reao-
iustment was begun. improvement
vas more pronounced in the banking
aituation and trade. This was to De
expected, Not until the strengthening
of the credit structure had made con-
adorable progress was the basis laid
for any marked degree OF general IN
dustrial revival. Meanwhile. production
costs in many lines were considerably
reduced, due to somewhat more rea-
sonable wage scales and worer prices
for raw materials.
In addition to the increasingly Ia
vorable position CT the banks as
whole. an expanding volume OF pro-
duction, greater than Can be accounted
for by seasonal variations. has been
sustafned for some months. This In
dustrial progress, following. as 1t does
a prolonged period Of credit liQuida-
ton. has substantial bases for con-
tinuance.
A favorable factor OF major signifi-
canoe is the course of commodity
nr,ces in recent months. For nearly
a wear average wholesale prices have
heen fairly constant. Individual prices
II Ia true, have fiuctuated sharply IN
some cases. but the chief movements
have been such as to reduce the vide
disparities in relative levels. Tine
anpreciation in the value CT cotton
grains and other agricultural products
for example, has done much to restore
the balance between the buying pow
or Of the farmers and that OF othe'
elements CT the business community. II
turn. banks in the south ana "es'
have benefited greatly. either through
the actual liquidation OF loans or IN
creased assurance that customers VII
he able to meet their obligations. TIT
comparative stability ct the genera
wholesale prices for nearly year, maj
induced a marked degree OF commence
that for some time present price lev
els viii be sustained, or. at least, DE
cline, II at all, gradually. This u
reflected in an lncr eased volume
forward buying.
The pronounced building moveinen
throughout the country is both a caus
and an effect of better economic con
ditions generally in the United states
Likewise, the recent Improvement II
the automobile industry more or les
symptomatc Of business conditions
q whole.
II IL also OF considerable signifi
canoe that the railroads are preparin
for increased business activity. az In
dtcated by the number CT freight car
and locomotives contracted tor thu
far this year. Orders for equtpmer
have recently been unusually heavy
That we have passed the peak
business readjustments Is evidenced o
the gradual but steady decline In Tn
number OF commercial failures an
the amount Of liabilities involved.
The prolonged period of sub-norm'
production in NEST industrial Ines hs
permitted the utilization Ct account
lated stocks Of commodities. In col
sequence. current consumption meet
are stimulating further producitun.
Business Improvement. however. r
mains spctty. Moreover. product''
.capacity in many Tines IL considerao
In excess Of consumption requir
ments. Necessarily such condiu'
win be disturbing factors for son
time to come. There IL clearly fer
shadowed q period Of intense comp
titfou. domestic and international. ~
recent instance Of competitive dew
ward revisionS Of certain ocean passe
ger rates 10 . case in point. CORE
nondinr competition for survival
domestic unitss In inevitable.
The fear. voiced from time to III
in one or another quarter. that 9
huge gold reserves and the remarF
bly, strong position Ct the Fede.
Reserve banks win lead to perl
Of "secoudary innation." has been
tensined By the recent trend OF
stock markets. Nevertheless. there
ground fer confidence that the ~
eral Reserve Board Will direct its
tivity In such manner ~ 70 q
courage uadue speculation In co
modify markets. This confidence - .
pecially fortified By the indication
Z purpose on the part Of the board
follow . policy Of maintaintns
serve hank discount rates above