The Washington times., 1929-12-03
CHANGES IN.
PROHIBITION SYSTEM


, surplus in 1881, "elief should
take the form of provisional
revision of tax rates.
Indebtedness to u. S.
The total amount Of in.
debtedness of the various coun-
tries to the United States now
funded is $1l.579, 465 1856. This
sum was in effect provided by
the issue of United States Gov
eminent bonds to our own peo-
pie. The payments of the vari-
Gus Governments to us on &C
count of principal and interest
for 1880 are estimated at a
total of about $239, 900, 900, for
1881 at about 1926, 900, 900, for
1882 at about $246,000,000.
The measure of American
compromise in these settle
ments may be appreciated
from the fact that our tax.
payers are called upon to find
annually about $475, 100000 in
interest and in addition to re.
deem the principal Of sums
borrowed by the United States
Government for these purposes.
Alien Enemy Property
The wise determination that
this property seized in war
should be returned to it's own.
ers has proceeded with con-
siderable rapidity. OF the origi-
nal seized cash and property
valued at a total of about
1925, 100000, all but $111,566,,
700 has been returned. Most
of the remainder should be
disposed of during the next
year.
General Economic Situation
The country has enjoyed a
large degree of prosperity and
sound progress during the past
year with steady improvement
in methods of production and
distribution and consequent ad-
vancement in standards of liv-
ing. Progress has, of course.
been unequal among industries,
and some, such as coal, lum
Der, leather, and textiles, still
lag behind.
The long upward trend of
fundamental progress. however,
gave rise to over-optimism DIS to
profits. which translated itself
into a wave of uncontrolled
speculation in securities, re-
sulting in the diversion of caoi-
tai from business to the stock
market and the inevitable
crash. The natural conse-
quenceS have been reduction
in the consumption of luxurieS
and Semi-neceSSities by those
who have met with losses, and
a number of persons thrown
temporarily out of employment.
Prices of agricultural products
dealt in upon the great mar
kets have been affected III sym
pathy with the stock CRASH.
Fortunately, the Federal re-
serve system had taken meas
ures to strengthen the position
against the day when Specula.
ton would break, which to-
gether with the strong position
of the banks has carried the
whole credit system through
the crisis without impairment.
The capital which has been
hitherto absorbed in, Stock-mar-
ket loans for speculative pur-
poses is now returning to the
normal channels of business.
There has been no initiation in
the prices Of commodities; there
has been no undue accumula-
ton of goods, and foreign
trade has expanded to a mag
nitude which eXertS a steady
ing influence upon activity in
industry and employment.
Business AS Usual
The sudden threat of unem-
ployment and especially the
recollection of the economic
consequences of previous crashes
under a much less secured
financial system created un-
warranted pessimism and fear.
1t was recalled that past storms
Of similar character had re.
suited in retrenchment of con-
Struction. reduction of wages.
and laying off of workers. The
natural result was the tendency
of business agencies through
out the country to pause in
their plans and proposals for