Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-29
CALLS NEW WANTS
PROSPER|TY'S NEED
Historian Declares Changes
in Desires Bring About
Industrial Advances.
pispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 29.-James
Truslow Adams, the historian, believes
that the whole matter of prosperity
must be discussed and viewed from not
only the business standpoint, but from
that of the human welfare, too. From
the business standpoint there are many
facts that show America has been going
through a new era. Stuart Chase says
that the present era from 1922 to 1929
marks the fifth great period Of BUSH
ness prosperity in the history OF the
country.
But when it comes to discussing
prosperity and its effect on people.
Historian Adams makes some very
pointed remarks:
Our prosperity can be maintained
only by making people want more and
more all the time Those, and they
prosperity has been mainly caused by
the phenomenal expansion of the auto
mobile business tell us that 1t will soon
be necessary to find some other article
which will similarly take the public
fancy and create billions and billions
and billions Of expense to men already
tired Of doing nothing but meeting new
expenses"
Many Factors in Happiness.
Stuart Chase joins Mr.. Adams In this
point of view. We can all agree on
pig-iron and bank clearings and even
upon telephones per CAPITA" says this
dynamic writer, "but we cannot allow
the optimists to claim that these things
automatically insure the good life. These
men may be right, but they have never
adequately proved their case. Indeed,
1t would tax the resources Of psychology,
anthropology and history to prove It."
So these critics and others are rising
to say that business prosperity is not
In itself the yardStick by which nations
can be or must be judged.
Does the increase Of pig-iron pro-
duction, bank clearings and foreign
trade invariably and inevitably make
the average man happier and the social
life richer?" asks Mr.. Chase.
Mr.. Adams and Mr.. Chase answer In
the negative.
Sees Higher Brokers' Loans.
Gage P. Wright, New York economist,
is one Of those who believe that brokers
loans will continue to increase even in
periods of stock liquidation.
Wall Street in the past has con-
sidered it automatic that in periods of
falling stock prices brokers' loans
would decrease by virtue of the cleaning
out of weak holdings and the transfer
of stocks to strong hands," says Mr..
Wright.
But with the change in Federal Re-
serve policy regarding speculation and
credit, and the resultant stiffening in
money rates, new factors must be taken
into consideration"
He enumerates four factors. First,
out-of-town bankers all over the coun-
try taking advantage of the prevailing
money rates to send their surplus funds
to Wall Street to be loaned On call.
They are becoming increasingly reluc-
tant to lend funds for commercial and
industrial uses in many places.
A second factor is that falling Sc
curity prices invariably attract bargain
hunters. Two other factors are the
fiotation of new security issues and the
exercising of rights.
New Situation In Street"
wall Street is up against a new
situation to which 1t will have t. ac-
custom ITSELF" continued Mr.. Wright.
Under the present credit structure
brokers' loans will continue to increase;
but the situation is not as serious as
it appears at first glance. This country
Is going through an unprecedented
pCGtO0 Va H1OCHCA4ty-dlA pIUcpCEILy QG~
nnands capital; 1t is logical to assume
that continual increase in borrowings
is healthy sign In that 1t reflects a
steady expansion in the industrial and
economical life of the country at large"
This point of view has a wide fol-
lowing, but it is not by any means
the generally accepted position Of
economists.
Noble F. Hoggson, interested in archi-
lecture and building construction, has
written an excellent book on banking"
Reserve Board Pictured.
1t makes good reading-neither dull |
nor dry. He tells about use of |
wampum, beaver pelts, polished shells |
and tobacco as instruments of exchange |
in the beginning, and ends his story |
with the Federal Reserve Bank.
Mr.. Hoggson describes the establish |
ment of the first American mint, in the /
year 1862. which coined shiIlings, six
pence, three-pence and two-pence
pieces and greatly annoyed Charles II |
because 1t tended to usurp his royal |