Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-01-01
ECONOMIC PROSPECT
HOOVER'S ESTIMATES
FOR ENSUING YEAR

FOR ENSUING YEAR
Secretar, Hoove, OF the depart
ment of commerce issues the following
summary OF the economic prospects
for the year 1924:
The important thing In formulating
any Judgment as TO the economic flu
ture is an understanding OF our pres
ent position and OF the forces that are
in motion 20. and against economic
progress. The following summary is
based on the annual review by the
department representatives through
out the world.
The economic outlook for our own
country for the next year Is bright.
In general the world situation Is
hopeful. The general spiri; Of pru-
denCe. the absence OF speculation,
complete employment high produc-
ton. and the great financial strength
and stability OF the important states
in the Western hemisphere. together
with the promise OK the early con-
ference for systematic consideration
OF constructive solution Of the worlds
greatest economic merace-Eranco-
German reiatons-aN create hope
full foundation on which the New
Year nav build.
An economic weather chart OF the
world would show three distinct
areas.
First. the western hemisphere,
Asia, Australia and Africa, which
have made distinct economic progress
during the past year, achieving q
high degree OF economic recovery.
Second. Russia. the Baltic. the Bal
kan states. the Near East. Italy and
Spain. which are still struggling with
ofterwar political, social, currency.
debt. and budget problems but yet
show unGoubted progress IN the res
tOration of commerce and industry.
Third. an area OF economic depres-
sion resulting from the occupation OF
the Rhur and the collapse In Ger
many. While most acute IN that
country, II radiates Its depressing IN
fiuences strongly over Poland,
Czechoslovakia. Switzerland, Hun
gary. Scandinavia Holland. and
Great Britain. France can well be
placed In this group because the fail
ure to secure reparations has contri-
buted to an unbalanced budget and
the resulting indirect Initiation. This
has concealed the true situation and
has given an artificial and forced
draught to the industrial activity.
The other countries OF the group are
suffering from distressing increase
of unemployment.
The German collapse has In less
degree affected every other part of
the world The decreased consuming
power of Germany and Of the states
most affected has contributed to the
low price levels Of food products in
the United States and other food OK
porting countries. Tho decrease in
her steel and coal production ut first
gave some stimulus TO 'hc production
OF other countries. but this is now
offset by decreased buN.nE power OF
the depressed area for other COM
modities. One other effect of impor-
tancc has been the unIoubtcd sub
stantial flight of capital from many
of the states in this area of deprcs-
sion re- the United States. resulting
in further excessive accumulation of
gold here. The economic world has
not yet felt the full impact Of the oc-
cupatton OF the Ruhr Were 1t not for
the hope inspired by the initiation of
negotiations for settlement OK tho
German problem chs situation would
be most unpromisinG 70: the future.
Ever With settlement accomplished
there will arise considerable pro-
biems IN reimbursement OF trade
through re-entry OF German coal and
steel into the markets and through
the possible ((and 10 be hopcdf re-
turn OF capital which mas sought re-
fuge In the United states from many
parts %: Europe. During Che whole
year passed the events Of the de-
preston area have at least served TO
inspire caution IN the rest Of the
world and has contributed TO the alb
scnco Of speculation and, therefore,
to their fundamental stability. If it
be possible to reconstruct Germany's
finances during the forthcoming year
and to secure such assistance to
France as will enable the stahiliza-
ton Of the franc. the world will have
entered into a period OF great hope
and much promise Of prosperity. Fun
contamination cannot OF course. be
accomplished without a large mca-
sure of disarmament in Europe. for
the armies today maintained by, 40
million people there are upon a scale
which II repeated in the western
hemisphere. would mean 100000
men under arms-a strain that would
have made recuperation almost i'm
possible on this side Of the Atlantic.
even with the economic strength
which this hemisphere possesses.
Russia Is slowly making progress
with the inch by inch abandonment
Of communism and socialism. War
has ceased In the Near East. Greece
and Turkey arc turned toward pro-
gress. The eastern states of Europe
are sensibly approaching sound pro-
iects for sterilization Of budgets and
currency. China Is still disturbed
politically. but her commerce IS
maintained in spite Of It. The Jap
arese disaster has had less effect up
pr her economic stability than many
anticipated and has furnished new
proof Of the great strength and cour-
ace Of that country. Latin America