Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-01
Mr.. MELONS Happy New Year


message 10 the American people, the
SECRETARY Of the Treasury predicts that
the next twelve months will be marked
b. continued progress and by prosperity
ldr. Mellon is in close touch with all the
factors Of business activity and knows
the trend Of economic conditions init
Ynately. No one is better versed in the
industrial, financial and trade situa-
ton in the United States. and his ex-
preston Of confidence in the maintc-
nance Of the country's prosperity has
the strength Of authority which con-
stitutes a New Year greeting" tina:
will be happily received by millions.
In his analysis Secretary Mellon
points out that while there has been
some recession Of business activity from
the high levels Of 1926. the growth of
the country has proceeded along nor
NAL Lines and great progress has been
made even in the face Of several adj
verse circumstances. Commodity prices
continued to fall throughout the year.
but a large volume Of business was done
Notwithstanding, showing the ability OF
business 70 introduce economies in pro-
ouction ard to avoid the accumulation
OF excessive inventories. This adapta-
billy is one Of the greatest causes for
confidence in the future.
American business has been reduced
to scientific principles. It is no longer
a matter Of haphazard production and
marketing. Manufacturers and traders
are in close communion and keep ac-
curate count Of the economic pulse.
Capital Is used to the best advantage.
Overextension Of credit is rare and
bankruptcy is. with relation to the VOL
ume Of business. becoming less fire.
cuent. Through a more iudicious grant
CT credits both by the factors of produc-
ton and distribution and by the banks.
the country's financial structure is SUBJ
tected to less strain. Mr.. Mellon in his
analysis notes that the banks have
Shown large increases in loans and in
yestments. and it is known that an
enormous sum has been placed by the
public at large in sound securities. thus
turning back 10 capital account vast
fortune In individual contributions.
This mutually Of relationship be-
tween the consuming public and THE
producing and distributing elements.
through participation In ownership, is
one Of the strongest elements Of eco
nonic health in the United States. The
number Of people who are merely con-
suners and who are not participants In
any manner in the industrial and trade
activities is steadily growing smaller.
TIE Buying power OF the public is
after all The determining element in
national prosperity. Large reductions
Of wages. a general closing down Of in
cgstrial establishments. a curtailment
cf trade scope will lessen that buying
power There is nothing in sight 10
indicate such process. The shorten
ing Of production is usually due to a
fear Of oyersuppiy. which in turn LIS due
10 falling off in the ability to market
goods. Fear OF falling incomes leads
TO individual economies which, spread
through large numbers. aggregate 10
the point Of a stagnation Of trade. The
economic balance Is maintained when
fear lis absent On the part Of the public
on the score Of the loss Of income and
on the part OF manufacturers and dis
trlbutorS on the score Of the pubiic's
buying power. Such a situation pre-
SCENTS Itself new. Confidence has been
estGblisfeo and there is nothing In view
10 threaten a loss CT that confidence
Eence the iOrecss; bg the Secretary o!
the Treasury o! another year Of prog
:ess and prosperity is 70 be accepted al
80 assurance that the good times
which this country has been enjoying
Tor several years past viii continue.