The Birmingham age-herald., 1924-01-06

there would be another boom. with the inevitable slump to follow.
 It was Just .. this moment that the committee on business cycles issuee its report. It eet forth the causes oI booms and slumps. It pointed S % wass just then under way. It called inc. attention of the banks to their responsibilitfes in such circumstances in the granting of credit! It empna. slxed the danger and hurtfulness oI the practice of duplicating orders. IL took V positive stand against sn.s prsctics of canceiiny orders mars1,,l m buyinr lest the buyer. be left with stocks on his hands asQuired at tne peak.
 H.,, X Boom H %ss S sldetrack.a.
 ]. This committee report made pro found impression. The statistics TUT nished by the Survey of Current 6us, .n. ness made It possible to esma' d so dis. cover the fact that 1t was nearly Identical with those in 1920 when fhe hoom became dangerous. Ins Financial experts of the nation used these two sources of tnformatlon, measured one by the other, decided a dangerous boom was on tne way and. .that 1t could be preventeu, og | fntsIlicent action. They advlsea
 ths;r Clients as to tho logical course l of action.
 1 grrbs change in the situation was ai- nnst i,mmediate. It's first outstand- inC evidence was a falling orr or or naS.' The hne of thrilled orders on l inc department's chart turns snort about at the beginning or ARt Rs,. 1923. and plunges downwaa na., ~hifS beran 10 decline from the peek. The c,,rye of stocks on hand soon LOOK an uuward turn, This Eeiieved an iu.pending scarcity of materials. Ine siti,fion was steadied, brought down near normal. Production pusiness went ahead, but 1t did not ssecnmn,ated D1, ted
 There has been no wild expansion, no 1 frSnzy. no instability. from that day to this. A demonstration was made of thu possibility of controihhs boonls.
 These studies are regarded as pretty we'll having established nseo and principle. The need is stausucs
 and always more statistics. It is pos
 sibie to get enough facts and figurea to show almost beyond a doubt which
 way the win6 blows in an individual industry or in business as whole The government, building upon in- formation gleaned tnrouen thc eSAx ities of its many agencies, aided py I industrial associations, the trade press. private agencies that make specific studies, is able to get to- gether Q very wide range or 1acts upon which to base Judgment, facti upon which others may base Judg- ment. The great need is to increase
 the range of that fact gatnerlng, te get the facts to the. public quicker The department of commerce Is put ting on high pressure to accompHsr these ends.
 The principle that has been estab- lished is that of retrenchment In boom times and expansion In slump tines. The government has demon strated the advisability of this ir calling off construction when boom
 times are on. 1t Is educating tht public to retrenchment in boom times to curtailment of expansion. of buy ing, of running wild with the stam
 pede. Whatever is bought or built 1T boom times is likely to be on hand : little later and worth much more Boom tines are the worst time to
 buy or build. They are times for re trenchment.
 But when the slump comes, then II
 the time to load up. Whatever is
 bought or built is nearly sure to b' bought and built below the norma
 market. t will increase in value
 When times are slack, then is th' time to put on high pressure produc'