Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-02

Financial Surrey Of The
Year ShOWs Progress Made
own country and in the whole world
Conference May Produce better Con

ryfI'1s. aS4-,F .SFHr ~ H-"HtrlItl NsT'LtSs
own, country and in the whole world.
Conference May Produce Better Com
ditlons. .
A. present (December) there is good
reason for believing that the confer
enoeS on limitation Of ornaments. sit
tin in Washin gson. will bring about
better conditions II better relations.
bctweensSthe various nations of the
world.S The lesseniag Of taxes, which
hang like the sword OF Damocles
all enterprise. can only be brought
about as a resuls.of reduciiof or arm
aments and a reduction Of arn1a
men;s in urn is only possibla if there
grows up q cal will for peace. It is
estimated that the government spends
nearly 80 per cent of its income for
the payment CT the cost of past wars
n the preparation for. future wars
The result is that, while this heavy
burden may be more equitably and
scientifically, distributed than has been
: the case in the past, sill. since the
government has to pay its bills hug,
ANS will continue to be drawn froa,
productive enterprise in the shape OF
taxes. 1t is to be hoped that a detl-
mite fiscal policy will be adopted and
adhered to. for aside from the size OIL
the contributions demanded by the
g~overnnlRnt from business. all enter
prise has labored under the load OF
continued uncertainty. Business will
find difficulty in developing as long
as 1t is Impossible for it to plan.ahead
for any length of time owing to. the
continued changes in tariffs and
Z taxes.
+ Rediscount Rates Lowered.
During the ear the various feder-
al reserve banks have successfully
lowered the rcdiscount rates and the
banks of the unit have followed
their leadership. 1t may be question
ed whether. this action o the part
of the federal reserve banks was not
false hopes in the minds Of many as
regards sthe actual situation. There
have been many earnest and serious
pleas made during the year to keep
the rediscount rate above the pre-
vailing market rate on commercial pa
e so that the federal reserve banks
may be used by the member banks as
q final resort in, times of stress and
strain, but not for the purpose of OBJ
tanning loans with which to make ad-
ditional profit. Be hat as it may, in
times of retrenchment money will al.
ways become cheaper. AS a result
interest rates are likely to be lower
in the coming year and as banks nave
had large losses, their earning power
will probably be weaker than it has
been im'recent years. In this respect
banks do not differ from all other
businesses which will have to be COP
tent with less net profit than dur.
ing the war years and the period i'm:
mediately following the armistice.
y AS I nave indicated in previou:
statements, the period of GONZALES
cence following such a catastrophe a:
that Of the recent var is likely to be
a lengthy one. On the whole, con
pared with other similar times. fol
example. the period IF the Napoleon
ic vars. we may well be satisfied will
the progress made. Some improve
=, ment has taken place, some Of tn.
scars of war have been obliterated
and the speed of the upward move
rnent is likely to be accelerated Ill
fundamental conditions become more
:, sound. -. ~