Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-17
EXPECTS BUSINESS
VIGILANCE IN 1880
Regular Equanimity Forecast
Before Next Industrial
Year Passes.
BY MARK SULLIVAN.

Cooperation toward business stabil-
fly will continue to be a major activity
at Washington until well into the new
year. The recent appointment of an
executive committee of 81 business
leaders will be followed by the an
nouncement of a broader general COM
r1ittee of so. This larger committee
will complete the structure designed to
keep business on an even keel.
Part Of the work of the groups
already organized has consisted of col
1ecting data and judgments about the
possible duration Of the period OF re-
duced business speed. A summary of
these is to the effect that by April the
slack will be taken up. Chairman
Julius Barnes has spoken on one occa-
sion of "the next few months" On
another occasion he said with appar-
emily deliberate conservatism that
conditions would regain their regular
equanirnity before the year I93O) is
out"
The phrase regular equanimity' can
be taken to have special meaning. In
America regular equaninity does not
mean business as good as the year pre-
cedine It means more than that. 1t
means business exceeding its previous
records to the degree that is normal in
America. There is in America pace
of expansion applying to business In
general which can be illustrated by the
rate Of increase in the Governments
own operations.
Multiplied by Ten.
Some days ago, when the late Senator
Warren of Wyoming. chairman OF the
committee on appropriations, died,
contrast was pointed out upon which
different comments were made, some
of doubtful accuracy. 1t was recalled
that when Warren came to the Senate,
in 1890. the annual Government nm mt S aP-
preparations were about $400 1000, 600.
When he died they were about $4,000
100000. That is to say. in about 90
years the Government operations were
multiplied by 10.
In the midst of much surprised and
some critical comment, one of the
Wisest men in the country declared the
expansion was normal and wholesome.
AS he put it very roughly and with de-
1iberate picturesqueneSs In America
YOU should add zero to the figures OF
every growing institution or business
about every 40 years" This very rough
rule-of- thumb Is, of course, SUBJECT 10
many exceptions and was meant to be
more dramatic than liberal. The truth
behind it is that practically every bust.
ness man thinks of his business in
terms of constant expansion. Always
his comparisons of this years business
with last years is expected to show in
crease. To show mere equality is dis
appointment. American business is
seared UP to this point of view and
commonly lives up to it.
What has happened during the past
few years is that the pace of expansion
was greater than normal. What Is ex-
pected during the next few months, let
us say TO about April, is that business
records of the new year should about
equal business records of the past year.
What is expected by the close of next
year is that business will have resumed
what Chairman Barnes calls its "regu-
lar equanimity." That is, business will
begin again to live up to the rule OF
annual increases over the preceding
years record Business will enter a new
period of the expansion which in Amer
lea is the normal condition.
StlI some Concern.
The program of stabiiization being
directed from washington has not yet
fully covered all the areas Of possible
stability. There are still Some spots
that give concern. There is, however.
a complete change in the mood of the
men leading the work. The business
leaders coming to Washington have
completely lost the manner of concern
and hurry that characterized several OF
the groups five weeks ago. It is plain
that any anxiety about a really formi-
dable business recession has dropped
from them completely, There is no
longer any sense of dealing with a
grave emergency. Their present mood
is one of unhuEried attention to such
spots as still need care. They are con-
fdent that the most pressing part Of
their work is over. They are confident
that all their work in the ordinary
sense will be over within few weeks
Thereafter their function will be merely
that of seeing that things go smoothly.
They are confident that the ebb of bust
ness next year will be slight compared
to 1920 and 1921.
So complete has been the change of
mood that there is now some concern
lest some parts Of the measures for re-
covery be overdone. There is some ap-