Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-25

The entire world is looking to the
United States to bring about an access
of prosperity. not only lifting itself by
its bootstraps. but bringing better times
to all nations. The present level OF
commodity prices. almost unprecedent-
eddy low, is ascribed by economists IN
ali countries to the operation Of the
business cycle in the United States. So
preponderant are American industrial
activities and interests, 1t Is claimed.
that trends here effectually dictate
world trends. In consequence, Just as
we have been blamed for lean times
over the past Winter throughout the
, world, now we are being looked to for
worldwide relief.
The business cycle is the most ancient
and seemingly undirigible OF all
economic phenomena. Since the dawn
of trade there have been periods OF
vent of the industrial age these inter-
ludes became more pronounced and the
changes worked more fundamental.
During the last rs years, periods OF
boom and Of depression have occurred
with rather dependable regularity.
About every decade period Of depres-
sion could be counted on. In the last
couple Of decades the depressed periods
have been Of briefer duration.
How it all happens is traceable to the
human element which. Of necessity,
accompanies every action guided or
taken by human beings, no matter how
mechanical the age In which they live.
Men operate machines after men have
invented them and mems ambitions and
desires and impulses to produce and
consume, to save and to squander swing
In q wide amplitude. .-
when he was Secretary Of Commerce
President Hoover devoted much time 70
the study Of the business cycle and ap-
pointed special committees and experts
to devise means for smoothing out the
peaks and valleys Of good and hard
times. Beyond question much was &C.
complished. The Presidents action last
Fall and Winter in setting every indus
trial leader in the country to work 70
stimulate activity and bring about great
er employment doubtless went lar to-
ward minimizing the extent Of the bus
| mess depression. Nevertheless, no for
mula has been found which will absolute.
| ly prevent recurrence Of this business
and sociological disease.
A period Of depression, like boil Al.
fiicting the human body or any sort o.
homeopathic treatment, Is not without
| certain blessings which, for the time
being, do not seem very blessed to re.
ceive. For one thing q vast amount Of
| waste and memc1ency S suppressed
Waste and inefiiciency are luxuriei
which q nation enduring hard timel
cannot afford. There is salutary
wedding out Of weak spots in the indus.
trial organization. The blood stream o,
production Is purified.
| Wasteful Effort Eliminated.
Right now, for example, the copper
industry Is badly depressed. Copper
has descended steadily, breaking through
the bottom of the price at which the
industry attempted all Winter to peg 1t
Economic pressure was too strong Il
make pegging-that Is, artificial price
acknowledgements Supply wal
| too large and demand too Indifferent
The result Is that mines all over thu
world which operate ut high produc'
ton cost are closing. Deposits which
are at present difhcult of access OF
which produce o poor quality Of ore are
closing down. Thus, the waste Of effor'
and money in bringing this copper Il
market Is eliminated.
The advantage to the world public
generally lies in this: II the price car
be kept up to . point where the high
cost mines can sell ut o profit, even thu
| low-cost mines are going to accept thai