Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-02
Wall Street VieW Lends
Encouragement to Trade
Prospects for New Year
BY BECK

full in years in business hi. DRY. 1t would
lay the basis for an indus rial revival Of
substantial duration.
Most of the essential elements for
progress Of this character are at our
door. Financial improvement has been
both consistent and continuous. Specu-
/ lative accumulatiOns of goods have been
undergoing a process Of thorough liquida-
ton The colossal inventories Of eighteen
months ago have been trimmed with a
special view TO banking inspection at the
end Of 1921. The pruning has served
manifold purpose. 1t has replaced slow
moving goods with cash. 1t has reduced
the volume Of total bank loans and added
to reserves. The funds released have
found their way into investment rather
than speculative channels. In other
words, We have a sound, healthy situa-
ton. Last, and perhaps most important
of all, we have a potential buying power
that requires but a moderate stimulus to
MAKE 1t insistent. Inventories have
reached point In many lines where they
can be reduced no further.
With inventories down, there will be
increased buying under any circum-
stances. This viii lead to more manufac-
turing. The result will be gradual i'm
low. Wool, rubber, copper and hides are
at levels which suggest inevitable in
crement in price. This element of sta
blilty is an encoura cement to purchases
and consequently to an increase in the
volume OF business. The buying after
the turn Of the year is likely to assume
considerable proportions.
TELLS OF SHIFTS THAT
MUST BE ACCOMPLISHED.
These observations relate largely 10 the
factors likely to govern domestic BUSH
ness activities. It is possible to speak
hopefully, although not with the same as
surance regarding the prospects for
larger enterprises and the outlook for
foreign trade. In these fields readiust-
ment must proceed still further. We
need cheaper fuel cheaper transportation
ana cheaper rents. Lower taxation is i'm
perative. Lower railroad rates NAV have
10 precede wage reductions, but the lat
ter cannot be postponed too long il rail-
road Management leads the way.
The wage schedules in the coaI-mininr
industry and the building trades must
come down progress toward recovery is
to continue The burning Of corn for
tuel gives indisputable proof Of the de-
structive maladjustmeDt between our pro-
ducing groups. Our great agricultural in
dustry cannot be sacrificed to provide
war time wages to certain ORGANIZED
groups whose answer to the demand for
ialr contribution to the program of re-
adjustment is the threat of a Nation
wide fuel famine or trans portatlon tie-up.
These are the ugly phases of the situa
tlon. They cannot be lodged or ignored
Left to the composite intelligence and
courage OF the American people, and
granting minimum of political inter-
ference, the tendency would be in the
direction Of gradual readjustment and
satisfactory settlement. After all, they
are questions for the people-the public.
not capital or labor-to settle. and exne-
rience, as well as the temperament of the
American people, gives basis for general
optimism, even If the details by which
our problems are to be solved are not
within the range Of our vision.-Copv-
right, 1921, by the Public Ledger Com.
pany.