, 1923-02-02
Returning Good Fortune.

ANNOUNCEMENT that farm crops III the Ohlleu
a States were worth three billion dollars more
in 1922 than in 1921 gives some indication of the
extent of the return of prosperity. "hlle prices
of farm products must go higher, or the prices
farmers pay for what they buy must go lower, IN
order to establish a fair basis of equality, yet the
Improvement has been SO great as to be cause 1or
congratulation. ,
conditions are seen. In fact, every line of business
shows revival from the depression that followed
the deflation movement of 1920-2l. Tho iron and
steel output was about Go per cent greater in 1922
than in 1921. The production of textiles showed
an increase of about 20 per cent, OF petroleum, 10
per cent, of paper % per cent, automobiles % per
cent, rubber products 40 per cent, lumber 30 per
cent.
There has been a change in employment condl-
4, tions in accordance with these figures showing i'm
proyement in industry. No industry can thrive
without giving employment to labor, skilled or
sunskilled. and usually TO both. In 1920 and part of
1921 there was a great surplus of labor and several
millions of men we're out of employment. Mills
were working on part time and building operations
were suspended. In the latter part of 1921 and
all through 1922 conditions steadily improved un.
til today the complaint is that industry cannot
get labor enough.
I This change in business activity has been due
in part to natural variations in conditions but
chiefly to the removal of artificial influences and
the establishment Of national policies that create
confidence in the future. 1t will be remembered
that early in 1920 the Wilson administration con-
Quoted its deflation program, through the raising of
interest rates in the Federal Reserve System. The
deflation movement hit the farmers first, and, since
they constitute the chief buying element in our
population, their financial losses were reflected
upon industry in general.
: One of the early objects, IN fact, the very first
move of the Harding administration was TO relieve
the farmers so far as they could be relieved by gov
eminent action. The president appointed TO the
Federal Reserve Board d. r. Crissinger q very
competent banker and financier from the old home
town. He was not only an advocate, but had prac.
ticed in his own bank the loaning of money at
rates, not as high as the necessity Of the borrower
compelled him 10 pay, but us low aa the bank WAC
justified in reasonable profit and safety, Soon
after Mr.. CriBsingcr came to the Comptroller's Of
flee and membership on the Federal Reserve Board,
rates began TO come down and all lines of industry
began to experience renewed activity.
Moreover, the administration promptly put into
effect the new provision for loans through the War
Finance Corporation, advancing to agricultural as.
sociatiOns the funds necessary to enable them to
market their crops in an orderly manner instead of
selling IN haste at any price that could be had.
These two changes in national policy not only
brought immediate improvement in the status of
agriculture but it made the farmers large buyers
of commodities in general and revived confidence
in business conditions. Today the only serious
check 70 industrial activity is the inability of thl