The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-11-28
STOCKS CRASH
FAR REACHING,
WRITER THINKS
Business Depression Exists,
Can Not Be Ignored,
Denny'S View.
BY LUDWELL DENNY
Times staff Correspondent

is a slight business depression. To
ignore that fact would be danger
Gus. To exaggerate that fact would
be equally dangerous.
If the country had not been
shaken by collapse of the stock
market, President Hoover would not
have found it necessary to call the
nations business leaders into con-
ference and appeal to state officials
to help stabilize commercial condi-
lions. However, the fact that the
President has succeeded in mobillz-
ing industry to meet the emergency
is the best promise that the situa-
ton will not get out of hand.
Unlike the industrial crisis Of
1921, political and business leaders
are not succumbing to the futility
of calamity bowling or the accom-
panying futility of whistling to
keep up courage. Instead of howl
h ing or whistling, they are planning
and acting.
Hard to Adjust
1t is not easy to adjust quickly
the business dislocation caused by
the Wall Street fall. Too much
money was involved. Too many
people we're injured. The evil eff
fects are both economic and
psychological The purchasing
power of hundreds of thousands of
people has been hit, directly and in
directly. The confidence of many
more is shaken, and prosperity is
based on confidence.
Estimates of the loss inGStock
values range from $40,000,000,000
to $60,OOo,O00 Of course. these
figures in the greater part are hc-
titious. They represent paper and
water. But they can not be dis
missed so easily. A certain part OF
the total is made up of hard cash
That cash was taken out of savings
banks and from mortgaged property
by many John Joneses and many
Mrs Henry Smiths in almost every
community in the land.
Capitalists Have 1t
Their money today is gone. II
is in the pockets of capitalists
Those big fellows, with the fall OF
1.-THE market, have bought back their
stocks. Now they have the stocks
and the peoples cash besides.
That concentration Of wealth In
fewer hands means that the rank
and file have lower purchasing
power. And prosperity depends or
a large mass market consuming and
paying for goods.
Obviously, the seriousness Of
these effects of speculative def1a-
ton is to be based on the economic
condition of the country. To the
extent that the basic condition is
sound, the country should be able
to withstand the financial shock
with a minimum of danger.
) ANY lack of confidence in the
economic future of the basic
strength of business in the United
; States is foolish" according to the
President. Our national capacity
for work and intelligent co-opera-
ton is ample guarantee of the
future"
Agree With Hoover
! Most economists would agree with
the Presidents optimistic conclu-
sion, though they would stress other
reasons for our basic business
strength. Capacity for work and in
telligent cooperation are not q
guarantee of prosperity, as Great
Britain is discovering to her Sor-
row. Americas economic strength
consists in superior natural re-
sources, superior industrial equip
ment and technique, superior do
nestle market, and superior credit
facilities to any nation in the world
That basic strength is unim-
paired today.
But basic economic strength does
not mean necessarily continuous
prosperity for the country as q
whole. 1t has not meant steady
prosperity in the past. There have
been ups and downs, fat years and
lean.
There were signs of a let-down
in prosperity even before the Wall
Street crash. That, doubtless, Is
the reason political and business
leaders now are not trying to laugh
off this emergency.
Indeed for more than a year
industrialists for the most part
have moved with caution. Now the
country in time of need is profiting
by that far-sighted business con-
servatism. which balanced some
what the speculative extremes OF
Wall Street.