Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1927-12-09
ROCKVILLE, MD
ProfitIess Prosperity.

In statement which he gave to the
press Of the country recently. Secretary Of
Treasury Mellon admitted that business
conditions are what might be termed
"spotty," that while some lines OF business
are rather weak" some others were going
full tilt" Not long ago President Coolidge,
in discussing business conditions, was
quoted by White House correspondents as
admitting that there had been some de-
preston and uncertainty. but the danger
was past and. in effect, that prosperity
was again widespread.
Secretary Melons admission that pros
perity is "spotty" and the Presidential
confession that there had been period
Of depression are at variance with the
lavish claims Of universal prosperity which
have been emanating from administration
quarters for SO long. Others have been
contending for a long time that the pros
perity was just what Secretary Mellon now
admits 1t is. 'spotty." that is that certain
tariff-favored special interests. like the
steel trust, Mr.. MELONS aluminium trusts
and the DUPONT interests were coming
large dividends. but that farmers and the
smaller class Of merchants and manufac-
turefs were not realizing large profits. and
that many of them were actually going
into bankruptcy.
At the recent convention Of the National
Manufacturers Association. held in Chat
tanooea. Tenn. there was skepticism over
the administration claims Of large turn
overs and big profits. even among the man.
ufscturine class. The term "profitless pros
perity" was coined at the convention. sug-
Costing that while the wheels Of industry
were turning, most of the producers were
not making substantial profits Most Of
the blame is placed on the high cost Of
production, and the chief factor in that is
the enormous tariff duties imposed by the
Fordney- McCumber Act.
There are other signs Of lack Of conf
dence in a golden prosperous era ahead
under the high tariff and some Of the other
policies of the Coolidge administration,
which showers favors on few special in
terests while others are engaged in a sink
or swim struggle.
For example. there has been heavy
slump in building activities. Building
permits In the principal cities OF the coun-
try during October amounted to $l65, 492.-
500 as compared with 1882, 244, 800 dur
during October. 1925. decrease Of nearly
$lOO,O00.000. But it is the record Of in
solvencies among the traders and small
manufacturers that basis is found for Sec
rotary Melons admission that prosperity
is ''spotty" and extremely so.
For the first ten months Of 1927, as
shown by reports to r. G. Dun G. Co., there
was total OF 1920 defaults as compared
with total of $l7.S74 during the first
ten months Of 1925 and Of 1884 during
the first ten months of 1925. The num-
Der during the first ten months Of this year
Is the Greatest during any like period in
the country's history. likewise the liabili-
ties involved in these bankruptcies. The
liabilities involved in the failures during
the FIRST ten months Of 1927 reached the
enormous total Of $432. S95,442, an in
crease Of more than $i00.00O.OO0 over
those for the corresponding period Of 1925,
when they aggregated $330.928,7O7.
The report shows that major part Of
the increase in insolvencies this year has
been among the manufacturers. They
were OF the smaller class, indicating the
claim often made that the high tariff policy
OF the Coolidge administration is boon to
the trusts and monopolistic manufacturers
but Is proving so ruinous to the smaller
plants that they have coined the phrase
"pro6tless prosperity" Il is only such
monopolies as the steel and aluminium
trusts that thrive under prohibitive tariffs.
Further indication that the administra-
tion leaders are not confident the next
year or so are going to be a golden period
may be found in the opposition of Presi-
dent Coolidge and Secretary Mellon to a
tax reduction Of more than $225 900, 900.
With any such degree Of prosperity as the
President has prophesied, the Treasury
surplus next year should exceed a half
billion dollars. and Democrats in Congress,
wish to give the benefit Of this surplus to
the overhurdened taxpayers. The Cool
idse-Mellon insistence that the tax reduc-
tion be held to 100000 does no,
fit into the picture the President has
painted Of golden era Just ahead.