The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-21
BUSINESS SEES
NEED TO GUT
I. PROFITS
Revision Downward to Meet
Scale on Farms Urged
by N. Y. Leaders.
BY WILLIAM HARD.

its mind between telling the country
the truth about business conditions,
and on. the other hand avoiding
and snubbing the truth for fear that
the truth might create some tenn
porary Misunderstanding.
The hulk Of business opinion,
however, is moving toward the idea
Of telling the whole truth in orde.
to put aA end to the underground
whispering current OF rumors which
exaggerate the bad features Of the
business situation.
All over the United States today
in private conversation business men
are speaking in exaggerated terms
Of an approaching depression. They
gossip with one another; AMI, at
every remove, the reports OF the
| situation become more alarming.
1t is beginning to be thought
here, among the leaders of national
business, that the wise thing and
] the safe thing to do is to bring all
the apprehensions out into the open
land look at them clearly AMI
frankly In order that all possibiii'
| ties of foolish panic may be dis
missed.
! Exaggerated Fears.
The truth Is that in almost all
lines of business there is either a
slight slipping or else there is a
condition which indicates that there
may perhaps be slight slipping in
the near future
1
and of this expectation cannot be
denied. Business people are appre-
henaive. They cannot exchange
their apprehensions among one an,
other, and with every nod and wink
go off to their business in a pes.
simistic state Of mind.
| They say: Don't tell anybody
about all of this; keep it dark. "
Thus they hope to avoid general
public lack Of confidence in the
business future. They hope it, but
they do not accomplish it. They
fail to accomplish it because each
one Of them thereupoh goes away
and behaves pessimistieally and APP
prehensively in his own business.
Thus together in their private be-
haVior they bring about the very
thing which in their public policy
they are trying to escape from
producing.
They are producing today an un-
derground wave of conviction that
business presently in the United
States is going to be bad. This
poison is running through the
, veins of all business in the United
States. The wisest opinion here is
/ that now the time has come for a
frank analysis and a frank cure.
Building Overdone.
1t is noted that the building boom
in many communities has overshot
itself. More buildings have been
put up at enormous prices than can
profitably be sold or rented. This
is by no means true in all COM
munities, but it is undoubtedly true
in many.
Wages in certain Of the building
trades have been extraordinarily
high. A young man who was put
through college with the help Of
friend of this writer was recently
| found by this friend to be occupied
as a plasterer. The friend said
to him:
"You have a college education.
and now you are plasterer. Why
and for what purpose?'
The boy replied: "At present 1
Cannot afford to go into business
am making too much money al
a plasterer and my wife and
need it. Later on. when things
change. I'll be. around to you ask
ing for a business job, and I'll
have some money saved up for
ca pital"
| 1t is believed that the number
OF gentlemen plasterers in the
United States has become exces.
sive. The cost of building has b..
come so high in relation, for in-
stance. to the prices of agricultural
products that the situation Is
thought to have become lop-sided.
Buildings have been constructed
which are so expensive that an
adequate and proper profit on tile
| investment in them will be difficult
! to secure. In other words, IN
general the country has been go.
ing through q period when the
cost OF things In the urban indus
trial woEld has been quite out Of
harmony with the prices of things
produced by the farmers.
Must Be HarmOnized,
Some kind of harmonizing b.
| tween agricultural prices and in
dustrlal cost and prices was bound
10 come. The big national fact
OF the moment is that this har
m9nizing is about to occur.
me pest thought here is that If
TINS process Of readjustment hap.
pens IN the dark and without public
| comprehension of it's nature it NAV
lead to exaggerated apprehensions
ana to sort of partial panic.
| on the other hand, the public
ieaIizes that all that is happening
IS an adjustment between agricul.
gural conditions and industrial con.
uitions, it is thought that the trans.
ltion can occur without any undue
distress.
The purchasing power of the
farmers has not been as high as 1t
sn0ulo nave been in order to be
anIe successfully to consume
proper portion Of the products of
the industrial world. Many manu-.
featuring businesses are now be.
ginning to limp a bit in their
monthly profits. They are beginning
10 make less in profits than they
made few months ago. The dan
ger is that through gossip and
through suspicion they may make
the future darker than it really Is
and begin to restrict and contract
their operations much more than is
! really necessary.
| The proper course, it is believed
| here In the most conservative circles,