The Topeka state journal., 1922-05-06
PROSPERITY HERE TO STAY

PROSPERITY HERE TO STAY
Quit9 apart from the bright reports
heard in business and financial circles,
trade reviews are distinctly hopeful.
Progressive gains in the volume of in
dustrial output, combined with con-
tinued accumulation of capital and
credit, have found their reflection in
number of directions; in a greater
employment of labor; in a strengthen
ing of prices; in a better state of
things on the railways; in a pro-
nounced rise of security values and a
broadened public interest in security
trading.
Present indications, says the Me-
chanics and Metals National bank
bulletin, point to sustained activity,
even If they do not altogether encour-
age expectations of further large ex-
pansion. Nothing in the situation is
perhaps so encouraging" says the
bank. ''as the general belief that a
bottom price level has been estab-
lished. and that henceforward adjust
ments which are made will, on the
whole, be in the nature or stabiliza-
tion. with odds in favor of advances
rather than declines"
However Objectionable rising prices
may seem to be they always bring
business activity in their train, while
falling prices bring business stagna-
ton. The ideal condition perhaps IS
one of stabilized values. but this is
seldom attained, for any considerable
length of time
1t may be noted that the business
revival was co-incident with the ad-
vance in the prices OF agricultural
products and was followed quickly by
higher quotation for steel ana in
creased railroad earnings.
Under the caption: 1.-The Chariot
of Prosperity Moves" Theodore Will
liams, writing for Leslie's. says:
without being sensationally re-
markable, business developments In
this country more and more warrant
the belief that we have reached a
genuine and lasting bettertimes per-
iod. Industry and commerce have
decided that the winter of depression
is over. that the spring has come.
that the toboggan NAV be discarded
and that a different means of loco
motion is in order So they have
dragged from its garage the old char
lot of prosperity and have begun to
operate it on a limited but increasing
scale. The ancient vehicle is not run
ming so well as it is likely to do with
in few months. Its parts are a
trifle rusty from disuse and its gear
needs abundant fabrication. But it
manages with some creaking and
soueaking to carry on and make pro-
gress. 1t moves slowly but It is going
Up hill and not down, and it is bound
in due time to reach the top, where it
viii find a level highway for years to
come.
Doubt on this subject should be dis
PEELED by survey of what has been
occurring in the cases or three of the
most important fields OF American en-
terprise-ag agriculture, transportation
and steel manufacturing. The i'm
proved prices for farm products with
in the past few months have not il
is true, as yet put billions into the
farmers pockets. Their benefit so far
has been mainly in the brighter out
look and q renewed morale, but they
have obtained sufficient money ma
terially to increase their buying pow
But additional encouragement is
furnished by the news from the rail-
roads. The net earnings of these have
shown distinct enhancement since the
FIRST OF the year, and AlthO there NAV
be some shrinkage later. It is pretty
certain that they have passed thru the
bad lands" along their y business
routes This is indicated convincing
ly in-the large orders that leading
lines have given for new equipment.
The steel industry, too. has lattsrly
had a marked upward turn. This
basic and colossal industry is one of
the most significant barometers of
business and its bettered condition has
created a vast deal of optimism in
every quarter. The signs are that
steel is to have another long day as 4
prince and that it will not for many
a year be put back to the pauper
level.