The Birmingham age-herald., 1923-03-17
EXPERT ANALYZES|
 PROSPERITY THAT| GRAPPLESCOUNTRy|
We Are Repairing Our War Damage, Declares Com
 merciaI Editor
BY WALTER BROWN, Editor New York Commercial. By Special Lensed Wire To The AEe-
 Herald.


 Herald.
 NEW YORK, March 16.-We are, without doubt, in the midst of an industrial boom. Those who are ob- serving the trend of affairs are seek ing the answers to several questions which naturally arise in such cir cumstaNces. Has the country reached it's maximum earning capacity? What will be the effect of still greater de- mands upon cur industry and from the Wall street standpoint. has the stock market already discounted this maximum production? Are we on the brink of inflation? To what lengths is that imitation likely to go and will it precipitate another reac1 ton and if so. to what extent?
 Theoretically an affirmative an swer might be given tC all of these queries. based upon precedent, but before we arrive al too hasty a con- clusion. it is well to consider them all from a strictly practical standpoint.
 We are obliged first of all to con sder the nature of the present boom and what led to it's inception. We are apt to compare it to the boom which followed the armistice and to consider it only in the light of that experience largely from it's statistical side.
 What We are really doing is repair ing our war damage. The boom of 19t9-l920 was merely spending spree. The two are nightly differ cnt. It is well to remember in this connection that the margin between depression and prosperity is merely rise or fall of 10 per cent in indus trial activity. Roughly speaking, about 50.000.00O of our 10000, 900 are engaged in gainful occupation so that a decrease of 10 per cent would throw ,eO00,000 of them out of employment. Statistics show that in the recent de- flation, our volume of business was about l per cent below normal, and that the unemployment conference in Washington two years ago, it was brought out that there were approXi- mately 5,o00,o0O unemployed at that time.
 Little Attention tO Europe.
 Caring for the necessities of ilO.- 000,000 population is a pretty big task in itself. and as these necessities were reduced to their lowest terms, it naturally followed that tremen- dous arrears which Account for the fact that we are so busily employed paying scant attention to what IS going on Tn Europe. We have made enormous strides within the past Is months in repairing war damage which in our case was the result ot being obliged to give our attention to war requirements while neglect ing the necessities of our civil pop ulation. 1t does not make any par ticular difference, however. what form the damage is in, the whole world has suffered because of four years of destruction and all the na- tions of the world are facing in one form or another this problem of re- pair It happens that we have raw materials and facilities and the money to undertake that work im- nsediately, but with all our resources it cannot be accomplished in a day or in a year. We have several years of -this work ahead of us. Euro Eean countries are facing the task, but are, as yN. unable to make ma- terial progress. Our industrial boom, therefore, means that we are making permanent Improvements and that Our expenditures now are for con struciive instead of destructive work.
 Maximum Lahore SappIy.
 Cur production and, therefore, III q large measure, our earning capac- ity must depend finally upon our labor supply and the willingness ot labor to produce it's maA.:-um. Due to our restrictive immigration laws. we have practically reached the maximum Ol OUT ldpoi SuPP'J' we are obliged to face the fact that labor is not willing to give us us maximum production. Increasing commodity prices are being accom- . panied by demands for increased wages the value of the dollar IS again decreasing in purchasing power and we are once more headeo around the vicious circle or spiral thae means an increased cost of nv ins.
 As to what the stock market thinks Of it can best be judged by recent developments. It continues to pres. mt Il strong undertone' seli- ing for profits is readily absorbeo. Icerc IS no present siSn or Weah ness, but the advance Is SLOW, eVi- denc.ns an Inclination to maintain present price levels. The Whole country is bullish. but for the pres ent,. at least, the investing and spec. ulating public is inclined to move cautiously with regard to further accumutations of stocks at those .eV- els. Some issues are undouDteois already, selling above their inherent worth but the !.sl as a whole mas