Evening star., 1922-12-24
BY ], A. FLEMING.

A year ago the business atmosphere
was decidedly hazy; the prevailing
color scheme was blue and deep gray.
Business had made recovery from
the deeper hue of midsummer, 1920.
but there was still far to go. The
great agricultural community, one of
the greatest buying factors in the
nation. was suffering from more or
less definite poverty. merchants were
working hard trying to reduce their
inventories and corporations, large
and small. were busy with the same
task.
Conditions have changed for the
better. Corporations. giants in the
industrial field. can see the bright sun
OF midday: excess inventories have
been very largely depleted and manu-
featuring activity needs to speed up to
keep pace with the demand Of the
restock frequently to care for the
wants of an earning. money making
people.
Everywhere the improvement has
been marked. with less emphasis, per-
haps, among the agricultural popula-
ton. and yet the sales of the mail
order houses indicate their purchasing
power has been largely restored
Congress just now is doing every
thing in its power to help the agri-
culturists.- planning general extension
of long time credits. aiding in CO.
are also helping themselves by plans
for slower and more deliberate CASH
ing in on their crops.
Banks everywhere have strengthened
themselves and the regional banks of
the federal reserve system have been
cumulate large surplus.
Indeed the 1essening demand for
money under more modern merchan-
disc methods. frequent replenishing
OF stocks rather than large holdings
on shelves and In warehouses, has
been SO marked that the twelve re-
serve banks and their branches. have
been unable to employ their surplus
cash to any good neutrality-suspicious.
barely able to earn their dividends Of
8 per cent due to shareholders.
1t has been a year of easy money
from start to finish. only occasional
flurries being noted. simultaneously
with federal financial operations. tax
payments or unusual cali for cash.
That the federal reserve system
other years Is In no way the fault
of the system; it was devised to meet
and right we'll 1t has met
every demand made upon it.
Probably the system has fewer OBJ
Jectors than ever. except in the south
and middle northwest. where the de-
flation of 1920 hurt. And even in
these sections the probability of
longer credits and aid to cooperative
will remove the objections
and leave par collections as the one
factor of opposition.
The great difference between the
prices paid the farmer for his crop
and the price paid by the ultimate
consumer has long been a thorn in
the side Of the farmer. and the new
cooperative marketing plans. with
long time credits, ought to be a great
help to him.
Protect Reserve System.
Merchants and business generally are
becoming alarmed at the many sug-
gestions for the amendment Of the
federal reserve act.
Unless a determined effort is made l
at once to arrest present efforts to bias
tho minds of large portion of the
people against the federal reserve act.
the system may become 30 disorgan-
lied that We may ultimately see a
Of the first and second banks of the |
United States" says a plea from the |
Association of New York. |
The business men of the country do |
not want this system placed in the |
lands of unframed men: they do not !
want it killed by politicians. They |
will not admit that 1t was in the |
most remote way responsible for the
rouble of the farmer.
Men Of courage, financial training
nd business men Of high qualIfica-