Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-19
MEN AND MONEY
By NJ. S. Rukeyser.
Copyright. 1879

| to prevent widespread excuses III the
realm of business this Spring.
AS the country begins TO emerge
from Midwinter seasonal dullness,
BUSINESS men talk checrfuily about
he prospects for a substantial volume
| If business. Emphasis is everywhere
placed on the abundance or credl'
,vaila bic at low rates with winch 10
nance legitimate operations.
f, The only question mark that looms
~ is whether the rapid pace or l9-o
an be continued. In some quarters
here is some feeling that good times
nave been overeXploited.
d. G. Ferguson of the Boston
'hamber of Commerce. in answering
my question as TO whether there was
Iny barrier to continued prosperity.
said: THE only ma jor obstacle TO con
inued prosperity that | can see lies
IN the possibility of our having de
veloped so rapidly since 1921 Some
time it will be necessary tor US 10
take a breathing space. / would not
attempt to predict when this Will
occur, although | believe that the
.onger we put it off the more extern
slve it will be-"
Another New England answer to
this same query came from II. r.
u
River, who SAID:
Dividing Line Vague.
Mass production and mass dls-
tribution have tended SO strongly to
the development of inStallment buy-
ing and the consumption of goods on
the credit system that it is dlfticuit
10 discern where the dividing line be
tween continued prosperity and de-
preston may be. Furthermore, oW-
ing to the vast productive machinery
developed in this country. ana the
high per capita production, the OPP
portunitieS for profit on production
and distribution are tending TO de-
crease with competition, and the
capacity for more than supplying
demand This has made the market
a buyers market. This situation has
developed in the textile industry II
order to keep the mills operating
1t has been necessary to manufacture
at cost or less than cost in order
save what would be lost from closing
down. Locally. the State taxes must
also be recognized in the discussion
of this question. Tax burdens in many
cases are absorbing a large proper
ton of any profits that a mill may be
making. The consumptive require
ments of the rest of the world must
be expanded somehow if we are to
carry on for an extended period with
a degree of prosperity which we have
had in the past
Roland B. Woodward of Rochester.
New York, a great clothing manu-
featuring center. though reporting an
increase in business over the CORE
spending weeks of last year, declares:
A spirit Of caution, due to uneasiness
and uncertainty as to when the peak
of prosperity will be reached. obtains
Hand-to-mouth buying is predominant.
THE very uncertainty inherent in
business men at this period will TO a
great degree cause a sidewise motion
to express itself in general business
conditions
Expects Normal Business.
+. E. Kramp, industrial secretary of |
the Detroit Board of Commerce. after |
a survey of sentiment in his |
district, says:
Nineteen tWentySix was a normal |
year showing slight increases in near. |
~ every line of business and was a |
year of great growth for the city of |
Detroit. Indications are that the first |
six months Of 1927 will show normal |
volume of business. 1t would be
hazardous 10 attempt any predictions |
or forecasts beyond that. Generally,
1t is expected that 1927 will show an |
increase over last year"
FROM the far West. Arthur G. |
Arnoll, general manager of the Los
Angeles Chamber of Commerce. re.
ports excellent local prospects for
spring trade, with business sound in
all lines. Los Angeles is reaching a !
ne" maturity. and instead Of continu-
ng to stimulate boom conditions likes
20 De known as the city of balanced
The business cycle has
oeen timed differently in Los Angeles
han in the country as a whole For
Example. the city passed the peak of
ne building boom in 1928. There was
ess construction in 1926 than in 1925
MI. Arnoll, however, declares that new
In 1927 will probably he |
larger than in 1926. whereas for the
country as whole many keen oh. !
servers see the possibility of a recess.
SION III the construction of new build.
lhgs. II a slack develops, it will to
large extent be offset by large pro. |
grams Tor the construction of pub
,!c works' ana the expansion of pub
lie utility facilities.
The lack of uniformity of conditions
IN various parts of the country IS II.
lustrated by the different timing of |
Ihe building booms in such cities az
Los Angeles and New Orleans. A sur.
sey maze for this column by the Neu
orleans Chamber of Commerce reveals |
lnat construction activities are on the
upgrade. A list of projects which aro
900, 900. 'o''iS $-oo'-
Trade Fair i'm South
Of he 1.
Vi farmers who have been disa nnointed |
with the proceeds of the cotton cron
New orleans reports a fair yoluma RI
current trade and good prospects for |
Spring business. Aoi
Fred b. Rakeman of the Indian.
apoils Chamber of Commerce. in con.
slder1ng obstacles to lasting nrosner.
n.y. SOUNDS note of warning against |
tne spread of installment sales !;
rom my personal observations. he /
states, Il believe that the confirm. |
ahce of installment buying at such a
tremendous magnitude should he a
question to which every business man
should give considerable thought
mere Is difference Of opinion as
10 the extent to which this new
method OF merchandising and financ.
ing Ing Is undermining our credit system.
ms may prove to be a very conse.
quentiai factor toward our business
prosperity in t~> future"
MIR. Rakeman forecasts a wear of
reasonably good business for his dis
trlct, not a record year.
A summary Of sentiment Indicates
that business men believe that the
burden will be on the seller. not the
buyer, during the remaipdar ne 1oo-