Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-26
Standards Unchanged
AS Buying Is Halted
BY HARDEN COLFAX.

The American public, like many Amer
lean horses, Is willing to pull and to
move forward. 1t will respond to the
command whoa, but it never has been
taught to back up. That fact Is lending
tremendous weight to the reports reach
ing governmental agencies that the de-
pressing opinions and psychology OF the
public are changing toward optimism.
American prosperity has been based
always on American standards Of living
and an improved standard Of living has
never shown q setback In the history OF
the world. according to Federal econo-
mistS. There Is now no likelihood that
American standards Of living will show
recession. This Is indicated by the
response to some Of the urgings set
forth by bankers and financiers that
economy be carried even to the point
Of q lowering Of living standards.
American buying has halted under
the psychological command Whoa"
but 1t has not backed up q step. That
means that the demand for goods and
commodities Of all kinds has not re-
ceded It means that buying ultimate
ly will be resumed not only In its nor
NAL volume, but with the added demand
fostered by the temporary cessation OF
orders.
Too much importance cannot be at
tached to this aspect Of the business
situation, labor leaders, hnanciers and
business men agree. American prosper
ity has been made possible by mass
production. 4 depletion Of mass de-
mand would be Q serious thing. But
the assurance which Is now being given
that demand sooner or later will be as
great or greater than before, gives the
producers of the country feeling OF
safety which cannot help being re-
hected throughout the business cycle.
Buying power has not been lessened.
It has simply halted temporarily. Proof
of this fact is found in the increased
volume of wholesale sales, news OF which
Is being broadcast from Government
departments this week. Preparations
are being made on q broad scale for Q
Christmas business which will compare
favorably with any in past years. The
effect of peSsimiSm Is growing less. It
is now largely confined to the larger
cities, where hundreds of thousands OF
workers were intimately connected with
speculative activities and who suffered
both In pocket and In employment from
the slump.
The workers of the country have
suffered from diminution Of employ
ment, but it Is notable fact that
wages have not fallen to any material
degree It Is @ matter OF history that
wages once obtained over any extended
period Of time have never dropped back.
There is every expectation on the part
of the far-sighted employers of labor
that wage levels will continue their
steady II slow advance. The buying
power Of American workers, which Is
the backbone Of the trade of the Ma
ton, will not be diminished because
the employers know that the workers
are their best customers and to impov-
erish them would be to hang Q drag
on the progress Of business and In
dustry.
The most potent factor In encourage
ing the exercise of buying power Is
found in the old slogan, your credit
is good" Dire things were predicted Of
the trend toward part-payment pilr-
chases when that policy was in its In
fancy. Then business men found that
the average American Is to be trusted
and that he pays his bills. Consequent
ly today they are perfectly willing to
extend credit and this willingness Is
fostering a spirit Of mutual trust and
is encouraging distribution.
Dispatches from wide flung Govern
ment agencies indicate that the buying
public Is at last feeling its responsible
ity In the providing Of jobs for those
who need them. The policy of hoard
ing money has always been objection
able to the American people. They
have not been spending their money
but they have not put 1t to work.
Sooner or later they are sure to resume
the fulfilling Of their desires and needs.
That will unquestionably start the
wheel spinning on the prosperity cycle
again. The money is available. Call
money has averaged around per cent,
whereas 90 years ago call money was
around 1875 per cent temporarily. There
existed at that time q period OF depres-
sion and its effects then were far more
drastic than anything this country sur
fered In the past year.
(Copyrishh 1851