Perth Amboy evening news., 1923-04-14

WASHINGTON, April 14:-Proba-
| bly, for the first time in history a
business boom is about to be vivi-
sected.
1t is the experience Of mankind
that business booms invariably are
followed by periods OF depression
which bring bankruptcies and ulen-
ployment. Many economists of the
college professor type have spent
much time in studying past econorn-
ic phenomena and have deduced
theories, some of which have proved
valuable and some of which have
been exploded by the next boom
which happenedFaiong.
The United States is just stepping
into the midst of another business
! boom and for a number of reasons
the period is of special Importance.
Usually business booms creep UP
on a nation imperceptibly. The
presence of the boom Is scarcely
realize1 until it is present and in full
swing. People are too busy to do
much studying in such times and,
therefore, the boom proceeds fever
lshly TO its ultimate collapse. During
the slack period OF depression which
follows there is ample time TO study
the phenomenon but by that time 1t
has passed.
Three months after the Armistice
a business boom started in the Unit
ed States and continued with unabat-
ed vigor until the early summer of
1920. Then prices and volume of
business came smashing down, bury
ing manufacturers, farmers, export
ers and all kinds of merchandise un-
der an avalanche Of business fall
ures.
The ensuing depression lasted all
through 1920, 1921 and a part of
1929. In the fall of last year bust
ness began picking UP in a desultory
fashion. Since the turn of the year
1t has started In earnest. In the
month of February industrial pro-
duction was greater than in any
previous month in the history of the
country with the exception of m
month in the war year of 1917. Rail-
road traffic is at record figures de-
spite the high rates. The whole list
of prices Is rising, In a word, the
country is mounting up on the wings
Of a big boom.
Signs Same as In 1913
In years past, business booms have
been comparatively few and far be-
tween. The boom periods have been
longer and the depressed periods be-
tween more protracted. By the time
a new boom i~mperceptibly crept up,
the last n had been 81 far forgot
ten that the identifying signs had
become unfamiliar. In the present
instance, the last boom is so recent
| that its hallmarks are fresh in the
| minds of business men. They are
able to recognize now the same signs
| they saw in 1919, only four years
ago.
Business men know that a boom is
in it's first stages and they are great
~ interested In it's characteristics.
It's development will be watched and
studied as no boom ever was before.
In short, while the boom Is alive and
| active, II will be v~ivisected. The
country will not wait until after II
| has collapsed to make a study Of It;
while 1t Ia functioning 1t win be ex-
amined to see what makes 1t tick.
An additional stimulus to this vivi-
| section is the report, which has just
been issued, of the special commit
tee on the business cycle appointed
at the Presidents conference on I'M
| employment. In the fall OF 1921,
when the last depression was at its
dn1th and the unemployed were es-
timated at five millions, the Presi-
dent called a conference OF business
men and economists to attempt to
find means of alleviating the distress,
Much was done to take care OF the
instant and pressing demand for en-
ployment but 1t was also concluded
| that a longer review should be made
and a. special committee was named
to make a survey OF the causes OF
| the alternate booms and depressions
which constitute what is known as
the business cycle. This COMMITTEES
studied the matter for a year and a
half and has just Issued its report.
This report will increase the inter-
est of business mel in the v~ivisectior
Of the young boom which nov is or
hand because the committees find-
ing puts squarely up to the individ'
ual business man the responsibility
flor leveling the ups and downs which
create the business cycle.
Briefly, the committee declares
that the individual business mai
should first constantly keep himsel,
informed OF everything taking plact
in the world affecting his own line o.
Z t No. - NftH