The Birmingham age-herald., 1923-04-06
THE BUSINESS SITUATION

THE BUSINESS SITUATION
 The recent period of business depression in this country dealt such a heavy blow to people that they look with some askance even upon returning prosperity, not know ing but what it may be merely another cake the eating of which will bring on another period of aches and pains. For now people know what for time they had forgotten, namely, that there could have been no col lapse if there had been no imitation. There fore, in spite of the brightest of prospects, people are extending themselves only with caution. This is healthful symptom, for the more solidly we build our foundations the more permanent they will be. During the war and immediately afterwards there was much of our business activity that was of mushroom growth. When the mushrooms withered it appeared for time that the whole structure of our prosperity was af- fected and about to fall into decay. Con- sequently, since people felt that way, so it was.
 It is noted however, that our returning confidence is based upon the substantial foundation of real requirements. Our mills and factories are turning out the necessities of life and it's complex demands of all kinds. There are as yet, generally speaking, no promotion schemes which have their base on temporary conditions. There is more tendency to expansion in old plants than there is towards establishment of new plants. Gus business is principally domes- tic business, with a constantly and gradually widening foreign trade, both export and import. Much of the world is still in tur- moil, currences are still debased, and de- mands are far below world needs. It is not expected that world conditions will become worse, but rather is there confidence that they will become better and better. AS they do, then the United States, of all na- tions the best organized and endowed with capital, will be in position to satisfy large portion of the expanding demand.
 It is noted in this connection that, although certain mills and factories are refusing or ders dated weeks and months ahead, there is no disposition to work overtime, but rather to spread the prosperity out over longer period. There is more lasting profit in a continuous demand than there is m hectic periods of production followed by periods of slack or idleness. Along such lines as are inclined to take advantage of the strong demand in order to boost prices beyond reason, there is perceived a counter tendency on the part of consumers to defer buying until costs come down. The buyer has learned something as well as the dealer and producer. The federal government has ordered delays in public construction because of the soaring prices of certain building ma terials, an example which others have not been slow to follow. This attitude is health ful and curative of tendencies that in the past have wrecked good times.
 For capital we do not lack On the con- trary, business and industry have made no great draft upon our capital and credit re- sources. Our total gold reserve is estimated at four and half billion dollars. This represents a credit reservoir of forty five billions. It would not be possible to say what portion of this is already being utilized, but 1t Is stated on reliable authority that it is comparatively small. Our activities are not passing themselves upon undue credit inflations. Perhaps, as we go along, there will at all times be observable certain con- trolling influences that will tend to check practices that lead to collapse. Certainly this nation never approached a period of productive and commercial activity with more significant warning as to the evil con- sequences of bad business practices, or with greater respect for the fundamental prin- ciples of sound business. It Is of good omen.