The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-11-21
PRESENT CONDITION
OF AFFAIRS NOT DUE
TO MARKETS CRASH
Depression Due to Business De.
cline Causing Def|ation Of
Securities Values
PROBES BUSINESS HISTORY
Production surpassss Not Pso-
pies Power to Consume
but Power to Purchase

Washington. Nov. 2l.-(R-Henry
Ford said today after leaving Z con-
ference Of business men called by the
president that the first thing to do
was TO correct the impression that
the present condition OF affairs Is
due to the stock market
Collapse Of speculation may have
been the occasion Of business fesi-
tation." Mr.. Ford continued, but It
certainly Was not the cause"
The stock market does not make
prosperity but prosperity II absolute
~ essential to such IN imitation OF
values - We have sooE durine the
past year. When ~ inflated stock
market breaks. Il does not noceaoar-
lily carry general businsss down with
It. but when general business de-.
clines 1t invariably debates Tho aTtt-
ficial values Of the stock market.
Study Reosnt DunDmoD
"Tl1at is what happsned. u vas
only the temporary diversion oe busi-
ness mems attention that prevented
them from seeing what Was happen
Ing. It Is now clear 70 I'll the1 the
real explanation Of the present sit-
uati0n Is not to b found n resent
stock market history but III recent
business history"
Il the public understands. the man
ufactdrer said. the stock market can.
not permanently affect US for either
good or bad, 'the way Is clear to con-
structtve views"
He added that business showed
some decline even while speculative
values were at their height.
Withdrawal q Brains
The reasons are plain" he said
first. there was .. serious withdraw.
81 OF brains from business. Men who
otherwise have been working out
bctter designs for commodities and
baster methods Of manufacture and
planning to put more value into their
products were drawn off from the
work they were best fitted to do by
the promise Of quick profit In specu-
lation. This was more serious for
business than most people are likely
to realize. have often said that we
need the experience and judgment OF
men in middle age or older, and when
this is withdrawn business feels It."
He gave as another reason the fact
that American production had come
to equal and even surpass, not our
peoples power to consume, but their
power to purchase.
Would Increase Wares
"This is not the same thing rs over
production Of goods" hessaid. TT Is
under supply Of purchasing power.
q OverproductiOn can never ncr,sr s,,,
I'll every need is supplied but the first
need Is the need Of money. Money
IN the peoples hands represents pur-
chasing power. In this country the
purchasing power of the people has
been practically used up. and still
they have not been able to buy all
that they must have. I therefore
suggest the need Of increasing the
purchasing power Of our principal
customers-the American people,
He declared that this must Be done
IN two ways: First. BY putting addi-
tional value into goods Or reducing
prices to the level Of actual values.
and second. starting = movement to
increase the general wage level.
Nearly everything in this country Is
too high priced. The only thing that
should be high priced In this country
Is the man who works. Wares must
not come down, they must not even
stay on their present level: they must
60 up"