The Semi-weekly leader., 1922-02-15
WEDNESDAY, FEB. Is, 1922
~PoOR, BUT SOUND"

The new year began with general
business conditions throughout the
country poor but sound" said Archer
Wall Douglas, chairman of the Commit
tee on Statistics and Standards of the
Chamber Of Commerce of the United
States, recently
According to Mr.. Douglas a determin-
ed and constructive effort is being ex-
erted to bring about a change for the
better by teamwork and cooperation.
In the entire absence of any apprehen-
sion of money panic he sees the most
encouraging feature of the whole situa-
tion.
How long the present situation will
last is subject Of much speculation
and inquiry" said Mr.. Douglas.
I'm the cotton sections, there are
those who feel that the first six months
of the year will show a continuous mo-
notony Of dull business. In the indus
trial districts there is a general feeling
that the situation will improve when
prices Of commodities reach a figure
that will tempt the ultimate consumer
to begin purchasing for other than his
immediate wants, 1t is rather signifi-
cant that some sales can be made at
bargain figures but very few at moder-
ate concessions. The answer apparent
ly is, therefore, that when the readjust-
ment now in active operation has re-
suited in a sufficiently low level of pri-
ces for manufactured commodities, bus
mess in the industrial districts will
assume more normal proportions.
I'VE have the curious paradox in this
Il. H.. H.
harvest ever gathered, and consequently
the greatest amount of agricultural
wealth, in quantity that we have ever
known, with the lack of the factor of
ready translation into liquid capital;
and in the midst of incredible plenty
or every hand, the countryside is still
in sore distress. The farmer is partic-
ularly short of funds since he has mar
keted so small a portion of his crop,
and as the country banks are already
loaned up to their limit, it is difficult,
in fact almost impossible, for the mer-
chants, and farmers to obtain further
credit. The farmer is most unwilling
to sell his products at present low fig
ures, and is not doing so, save under
stress Of necessity or because of pres
sure brought by merchants and banks
to settle his accounts.
From the viewpoint of the farmer,
1t may be said that he purchased his
house and farm equipment last spring
at the peak of high prices, and paid
for labor the largest wages within his
memory. Now, before he has >opportun-
ity to dispose of his products, the prices
decline from forty to fifty per cent, un-
til they reach figures which seem to
him entirely unremunerative. In addi-
tion, as is always the case in periods
of low prices, he finds that there is
practically no market for some of his
goods.
MANY merchants are engaged in coll
lecting bills due rather than mourning
new commitments, and consequently
their buying is confined after the ex-
ample set by the farmer, largely to
things of immediate need. Collections
are naturally slow under these condit-
ions. Merchants are revising drastic
ally their credit systems under the
stress Of necessity, and in many cases
the retailers in the country districts
are confining themselves strictly to cash
t'ansactions."-The Commercial and FL
nancial World.