Evening star., 1927-10-19
A Picture Of Prosperity.

Ing the prospect of continued pros
perity in this country coming from
the President of the United States has
much more weight than from any
other source. The Chief Executive has
no reason to make public declaration
Of faith in the persistence of good
times other than the facts as they
exist and as they are reported to him
from all sources. He is Interested not
in any particular line of industry. but
in the general welfare of the people,
and it is in his capacity as Chief of
State that he now summarizes the
economic conditions in terms that set
at rest the gloomy forecast of those
who for no particular reason have of
late been looking for reaction from
the high tide of prosperity.
1t is a natural consequence of past
experience with successive waves of
good" and hard" times that there
should be expectation OF recession
from the high levels that have pre-
vailed for the past several years.
There is, however. no economic law
that governs such things and that
brings about successive equalizing
movements. In the past economic de-
pressions of severity have occurred
in consequence Of wars, of great dis
asters and of unsound business condi-
tions. Such was that of the early
seventies, which came About mainly
through the instability Of the cur.
rency, and likewise twenty years later
a very severe reaction occurred due
TO the same cause. But the factors
that led to those two economic dis
asters have been corrected with the
establishment. doubtless for all time,
Of the sound-money principle and the
inauguration of q system Of bank con-
troll preventing dangerous credit ex-
pansion and unsound financing.
Continuous bad weather seriously
lessening the agricultural output Of
the country, prolonged strikes in basic
industries, disasters such as the Mis-.
sissippi flood of last Summer, may
temporarily upset the economic bal
ance. But this season now closing has
witnessed a combination of these three
factors that have not together shaken
the foundations of American pros
perity. This has not been in some
parts OF the country a good year for
the farmers. The great floods have
taken heavy toll of loss and damage.
A coal strike has prevailed for many
weeks. And yet the buying power of
the people in the main has not been
lessened and trade consequently ia
good in all parts Of the United States.
Were there feeling Of apprehension,
prevailing generally throughout the
United States, with consequent con-
traction Of purchases. trade would be
seriously affected, and with the de-
preston Of trade would come retrench.
ment. unemployment and hard times.
The President sees no such reac-
ton. Specifically analyzing the situa-
ton, he sees improvement in practi-
cally all lines, including even agricul-
ture and the textile industries, which
have been for some time one of the
depressing influences in American
economics. Despite repeated state
ments that the country has been
''overbuilt," the President notes that
by reports from all over the country
up to October the volume Of new
construction is only one-fourth Of one
per cent below that of last year, and
that the much discussed slackening is
p rot appreciable. Upon the building
activities depends in great degree the
prosperity of the fundamental indus
tries. both as contributors to build
ing and as beneficiaries from the con.
tinuous employment Of great numbers
at good wages.
This agreeable picture of the eco.
nomic situation which President Cool
idge paints is inspired by facts and
not by faith alone. II is the more re-
assuring in consequence.