The Lynden tribune. [volume] (Lynden, Wash.) 1908-current, 1922-01-26
BUSINESS FACES
Multitude OF IFS
War Was Financed in Old Fash
Toned Way That Has Brought
About Present Troubles.

Johnson, president Alexander Hamil-
ton institute and dean Kew York Uni
versity of Commerce. accounts and
finances:
No talk on American business and
its outlook can fail to touch on many
conditions which are sadly familiar 10
every intelligent business man. Bust
ness in America faces multitude or
Ifs" They stand in front of the bust
ness man like little devils and he
really does not know which way the
little imps are going to leap.
The great war left us as heritage
huge bonded debt and, worse still,
high level of prices, from the crest OF
which during the last eighteen months
the country has made most disas-
trous plunge Wages in some indus
tries have fallen. but in many impor-
tant industries, notably in the building
trades and on the railroads. labor
unions are still clamorous for the in
fiated pay envelope OF war times. If
labor is going to make long and bit.
ter fight against any reduction OF
wages, then there can be no adjust
ment of costs of production to market
prices and no immediate return Of
prosperity for American business.
How long is financial chaos to pre-
vail in Europe? Without gold, with
out credit, her labor inefficient and
discontinued, Europe, once our best
customer abroad, is on the verge o.
bankruptcy. If Europe does not soon
become normal can American business
nevertheless prosper? l might go or
and mention lot of other disagree
able possibilities, but it is not neces.
sary. You know them all. and should
merely confirm you in your conviction
that these are jolly times for the pes
simist and nobody else.
l, however, am not pessimist, and
am betting on the future of Mother
Earth and American business. The
problems ahead of us are economic,
not political, and the best minds in
this and other countries are hard at
work seewink their solution. Business
problems and perils cease to be dan.
gerous the moment we get clear un-
Outstanding of them. If ! can throw
a little light on some of the Difficult.
ties confronting American business
men I shall be satisfied
First Of all, l want to talk to you a
few minutes about the big cause of
our present business depression. 1t
is commonly referred to as the after
math of war. This country went
through a long period of hard times
after the Civil war After the Ma.
puieOnie wars Europe was PROSTATE,
and short-sighted prophets made the
same gloomy predictions about the
collapse of civilization which we read
today in newspapers and magazines.
But war was not the cause of depres.
sion then, nor is the recent war the
real cause of our present depression.
The real cause lay in our own ignor.
ance. All the belligerents, including
the United States, financed the war in
the old.fashioned. barbarous fashion,
namely. by an unparalleled imitation
of the medium of exchange. Europe
printed tons Of paper money and the
United States brought on an almost
equal imitation by an enormous expan.
sion of bank credit based on the large
mass of gold which Europe sent us in
payment for war supplies. While our
boys at the front were suffering awful
hardships and were being paid at the
rate of thirty dollars a month, many
millions Of men who stayed at home
doubled and quadrupled their earnings
and thousands of so-called profiteers
made huge fortunes. and at the end
of the war we find ourselves saddled
with debt the size of which would
have been declared crushing ten years
ago.
We hope there never will be another
war. but If this country ever is forced
into war with an enemy anywhere
near its own size it is to be hoped that
we shall be ready with a scientific fl
nancial plan. so that our full economic
strength can be brought to bear upon
the enemy. 4 will not undertake to
describe scientific financial plan,
but l feel pretty confident that its
outstanding feature will be universal
conscription; that Uncle Sam will put
his hand upon the shoulder of every
man and woman and say II want
you!" and that the men who stay at
home will have no larger incomes
than those who 60 to the trenches. A
war financed in some such fashion
would give us no inflated currency, no
spectacular rise Of prices, no profiteer-
ing, and its aftermath would be, not
a huge bonded Indebtedness. business
depression and unemployment, but Joy
that the Internal thing was over and
a prompt return to the profitable in
dustries of peace, for production costs
and market prices would not be out Of
adjustment II the world knew that
the United States proposed to finance
its next war in this manner. I feel
that we would never be fore.
ed into another war, for no nation or
group of nations would be rash enough
to attack us.
Now. a few words about the future