, 1925-01-04
Looking Situation Over

\ glance ackward at the major Developments
of 1924 all of which have u bearing on our future
progress, furnishes ample ground for an unus
ually cheerful attitude as we stand on the TIRES
hold of 1928. Probably the most important OF
these developments was the stern rebuke admin
istered to the propa gandists of radicalism not
only in this country, but in Great Britain and
France and TO some extent in other foreign coun
tries. The mere possibility of these radical plans
becoming operative has acted as a depressing
Influence on general business and on the security
markets. This statement is amply supported by
the fact that decided Improvement began to APP
pear as soon as. the elections were over. A mum
Der of over-cautious commentators have greeted
this sudden access of activity as a dangerous
thing, but it represents the elimination of appre
hension the restoration of confidence, the for
warding of many deferred plans and projects
and the release of the capital necessary to the
carrying out of these stiflcd enterprises.
Another vital development of 1924 was the
great improvement in our transportation facil
tiles. The casual observer hardly realizes what
this means to business and society. The shipper
who has to wait two or three, days for a car
or the merchant who has his goods delayed II
week or more in transit is forcibly reminded of
the advantages of prompt railroad transporta-
tlon, but the layman does not come in such close
touch with the problem. The transportation sys-
tenn represents the veins and arteries of com.
lnerce and this is particularly true in so large n
country as oar own. Furthermore. the railroads
can make greater profits when their facilities
hIc duequdte ana Inls Will, IN time, ada the adj
vantage of lower freight rates to the very mater
ial advantage growing out of the saving of time.
Nothing is more costly and unsatisfactory TO a
railroad than congestion and inability TO accept
and promptly handle all the freight that is of.
fered.
There are sound reasons for believing that
under our present railroad laws, plus the respite
from the danger of radical and destructive alter.
ations, the railroads will not only be able to
serve the public in a satisfactory way, but will
also he ahlp m aaannah1 TrnfffC {a--,ba
owners of their Securities.
Not the least of the important Developments
of the year and one which has a decided bearing
on the future is the marked change in the posi-.
ton of the farmer. Although the 1924 crops can
not be properly labeled bumper" we NAV safely
use the word abundant The great rise in
prices secured by the farmer is a more vital
consideration than The amount of production.
Inc principal complaint of the agrarian producer
mas been that the things he purchased were high
in price, while the things he sold were relatively
low in price. The recent recovery in prices of
wheat, corn and other farm products has com.
pletely closed the gap. The purchasing power of
the farmer has, therefore, been raised to normal
proportions and it is almost a certainty that this
change will soon be reflected III more liberal ex-
penditures in the agricultural districts. The far.
mers will also be able to pay off debts and this
VIII release capital for employment in other di
~rections.
We approach the year 1925 with the most sat.
~istactory credit situation ever Witnessed during
a period of heavy general consumption and rap
IDLY Increasing volume Of business. Nor is there
any reasonable probability that this situation
viii be materially altered in the near future.
As has been explained before. we own about half
the worlds money gold-it is ours in fee simple
and can only be drawn. away from us in large
quantities by giving us something in exchange
which we accept by n process of VOLUNTARY bar
gaining. We could gradually part with a billion
dollars of our gold without injury TO our credit
structure and probably with great ultimate bene.
fit to all OncernedA-including ourselves. rho
prospect of parting with this amount of cold
during the next three or four years is, however
decidedly remote.
The possibility that innationary tendencies
viii develop during 1925 is the one cloud which
can now be observed on the horizon. So much
has been said on this subject during the last
three years and so many prophecies-particu.
larry those of the British economists-haye gone
nstray that references TO the problem are FIRE.
quently greeted with derision or impatience
rather than with the respectful attention which
they deserve. 1t must be admitted that the essen.
tial ingredient of initiation, which is a redun.
ant supply Of credit, is present now. 1t must
also be admitted that initiation is greeted by the
masses with acclaim, as they are never able to
recognize the difference between genuine pros.
perity and initiation The superficial phenomena
are precisely the same in both cases. Finally, II
is quite certain that a few important but sci
fish interests would he able TO reap a large prof
it out of such a period. Initiation is a very pleas.
ing experience while it is going on, but it must
inevitably be followed by deflation, which is far
from pleasing.
A lawyer says what we need is less litigation.