The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1922-02-03
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 .Sew York Uni
yersity of Commerce, accounts and
finances:
No talk on American business and
its outlook can fail to touch on many
conditions which are sadly familiar to
every intelligent business man. Bust
ness in America faces a multitude OF
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
a huge bonded debt and, worse STILL a
high level of prices, from the crest of
which during the last eighteen months
the country has made a 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
flated pay envelope of war times. If
labor is going to make long and bit
ter fight against any reduction of
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
customer abroad, is on the verge of
bankruptcy. If Europe does not soon
become normal can American business
nevertheless prosper? l might go on
and mention a 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
l 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 a clear un-
derstanding of them If I 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
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 long period of hard times |
after the Civil war. After the Ma.
poleonic 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
Oh 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
md thousands of so-called profiteers
made huge fortunes, and at the end
IL the war we find ourselves saddled
With debt the size of which would
lave been declared crushing ten years
lgo.
We hope there never will be another
var, but if this country ever is forced
INTO war with an enemy anywhere
lear its own size it is to be hoped that
We shall be ready with scientific fl
lanc1al plan, so that our full economic
trength can be brought to bear upon
he enemy. 1 will not undertake to
escribe a scientific financial plan
ut | feel pretty confident that its
outstanding feature will be universal
that Uncle Sam will put
Is hand upon the shoulder Of every
nan and woman and say II want
ou!" and that the men who stay at
ONE will have no larger incomes
nan those who go to the trenches. A
'ar financed in some such fashion
'ould give us no inflated currency, no
pectacular rise of prices, no profiteer-
lg, and its aftermath would be, not
huge bonded Indebtedness, business
epression and unemployment, but joy Z
lat tha ipfarno1 tbipn xuoc Ouar and