Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-09-19
ANALYZINC OUR PROSPERITY
BY FREDERIC ]. H4SKIN.

The United States Is in the happy
condition of enjoying probably the
most soundly prosperous year of its
history. There is no marked boom
pervading the country. inviting sub
sequent and disastrous depression
such AS occurred in 1920 and 1921.
Times are as good as. or better than
they were then. but the symptoms of
panic which We're present then are
utterly absent now.
After the armistiCe. when the run
away boom took place. factories had
overproduced and merchants had over
bought. The competition among mer
chants for goods to sell on the rising
market produced constantly increas
ing prices. When the public exc
cuted it's BUYERS strike against the
ruinous retail prices the merchants
were left with goods on their shelves
for which they had paid high prices
and the manufacturers found them
selves in the position of having made
plant investments to meet the increas-
ing demand, with these investments
now an incumbrance. The result was
inevitable countrywide failure and
bankruptcy Of merchants, manufacture
ers and bankers.
Today the situation is manifestly
compiled by the Federal Reserve
Board. Taking the year 1919 as
standard land that was the last year
Of the big post-armistice hoom).. the
board shows that production in all
basic industries In July. the latest
month for which figures have been
compiled. was 10 per cent higher. De
partment stores are representative Of
the retail trade Of the country and
-
ance has been maintained by them
between stocks on hand and sales.
Both are 80 per cent higher than in
1919. Thus it is seen that both the
production and the selling end in re-
tail goods are more active than in
the boom year Of 1919, with the
volume Of business being done fairly
we'll balanced. Neither one is run.
ming materially ahead of the other.
The producers are just about keeping
up with the demand ana the retailers
are not loaded ZIP with stocks liable
to sudden diminution in value. That
no frantic orders for future deliveries
are being placed is indicated by the
fact that wholesale trade is 1s per
cent below 1919. In the latter wear
wholesalers were besieged with orders
to obta In goods from the producers at
any price. Now. 1t is seen, prudence Is
being observed and the steady flow of
trade maintained on an even keel.
Railroad Traffic Heavy.
That this is an enormous trade In
terms of actual goods produced and
consumed Is revealed by the an
nouncement from the Bureau of Rail.
way Economics. based on Interstate
Commerce Commission figures, to the
effect that during the first seven
months of 1925 more freight was han.
died by the railroads than at any like
period In the history of the country.
When 1t Is understood that this in
cludes even the war years when the
vast supplies of munitions. food and
other material for the American Ex-
peditionary Force and the allies were
being moved to the ports from all
sections of the country. the magni-
tude Of the present, traffic may. be
comprehended.
During this seven.month period 25.--
$50. s57 carloads of freight were moved
by the American railroads. This com
pares with 34.697.793 carloads in A.
similar period of 1928. and 32.475,3 1851
carloads for seven months of 1924.
These carloadings reflect total OF
26S. SOC. s35. 900 net ton miles. exceed
ing by 1S,417. 766 900 ton miles the
traffic of the first seven months of
1925.
From the point Of view of the index
number. this means a gain of 80 per
cent over the vast railroad traffic of
the boom year Of 1919. when rush
orders We're being shipped as fast as
they could be handled.
The great activity in building is re.
sponsible for much Of this. Despite
the feverish haste to build additions
to factories and to better the housing
situation which characterized 1918.
building contracts awarded in 1926
are IS per cent higher than they were
then.
Labor appears to be better off. too.
than in the last boom year. six per
cent less workers are employed in
factories than in 1919, but they are
getting per cent more wages-that
is, fewer men are getting an aggre
gate higher wage return for their
labors. The building and other in
dustries have absorbed the surplus
factory workers.
And with all this tremendous bust.
ness activity there has been less huc-
tuation in bank credit than last year
or probably in any previous year In
the history of the Federal Reserve.