Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-16
(Continued From First Page.)


moping around like sick pups, while our
principal occupation Is chewing rings
around the edge Of dimes as we debate
whether or not to let 60 Of them.
Also, we persist In jabbing the Wall
Street thermometer down the mouth of
the general business patient in order
70 see whether he is sick or well-wllen
as matter of fact this Thermometer
Is broken, and always has been Of
doubtful value.
People scan the stock quotation pages
Of the daily newspapers. note the minus
signs, draw down the corners of their
mouths, register first-claSs funeral ex-
pressionS and whine about bad business.
Now, the stock market does not, never
has and never will discount actual busi-
ness conditions. All it can do is to dis
count the publics knowledge of con-
dttions, or discount the opinions of
those who express their convictions on
the ticker tape through buying or SELL
ing.
stock market discounted conditions
from three to nine months ahead.
What it really did was to discount the
pnblicis knowledge of affairs. Now the
vast amount Of business statistics
promptly made public has changed
things radically and last year the mar
ket not only did not discount condi-
tions, but even failed to reflect them
promptly, and trailed hopelessly behind.
Business turned down very definitely
around the middle of the year, yet the
stock market continued merrily on its
way upward until early in September
and did not have much Of q decline
until October.
Ticker Tape Blinds Public.
The public must lift its eyes from the
Wall Street game, with It's present
doleful succession of SNAKE eyes" and
"iittle Joes" to the rosy-hued dawn Of
the approaching period OF prosperous
normalcy-not period of hectic activ-
ity and dangerous imitation, but q time
of busy, happy prosperity. It must
turn from the quotation page to view
the many promising indications and
optimistic facts plainly apparent TO
those who look for them. No wonder
the public can't see the signs of APP
preaching real business and financial
health when it has ticker tape across
both eyes.
To be sure, we are in a period of
business depression. The maladtust-
mentS with which the world now Is
contending are very real and challenge
the hest thought of the most highly
trained economic, business and finan-
cial minds In their solution.
The contrast Is very sharp between
che pace of business at the present
time and the hectic activity with which
The United States was cursed during
the first half of last year. The word
scursed" is used with emphasis IN this
connection, as, IN the last analysis,
there is only one thing which brings
on business depression - excluding
natural catastrophes and war-and that
Is some form of imitation. The way to
De- -
ton. The sure way to sl1un the morn
ing-after headache Is to keep away
from the party the night before.
The wild initiation and fevered ac-
tivity In which this country INDUCED
last wear has thrown our perspective
out Of line, warped our judgment and
unbalanced our sense of values. In
contrast with the pace Of 1929. any.
thing Ike normal activity seems dull
and uninteresting.
Pockets Bulging with Money.
The fact remains, however, that con-
ditiOns In this country are not and
never have been as bad as we have
been seeing them through our blue
colored spectacles since the collapse OF
the stock market last Fail. The re-
Inoyal of the blue glass and stock ticker
symbols from ones vision enables one
to see that the pockets of the Nation
are so bulging with money that thou
sand-dollar bill is glad TO get TO work
at the rate Of $40 year; that the
Federal Reserve is in such herculean
position that its reserves are close TO
the record high Of all time, and that
deposits in savings banks have eStao-
Nshed new high records.
Total assets of the mutual savings
banks alone recently passed the ten
billion mark for the first time In MS
tory, their deposits Of more than
5000 600 900 representing the largest
accumulation of small capital ever
brought together by one class OF banks
anywhere In the world" according 70
authoritative statements. Mutual saw
1ngs banks hold about one-third OF the
savings accounts in the banks OF the
United States. Such deposits do not
represent manufactured credit, but
actual savings which individuals in all
walks Of life have pushed under bhe
grating at the receiving teller's window.
A real problem has been created by
the volume Of funds offered the savings
banks. Large deposits are being re-
fused and some institutions have for
muiated rules preventing any one de-
posting over 81 900 within period OF
three months. Numerous savings In.
situations in Greater New York nave
recently reduced the rate Of interest
paid on deposits.
Buying Power Stored Up.
Does the spectacle of large deposits
being refused at the tellers' windows
and that Of the banks being so put to
81 to devise means 70 discourage de-
posts In volume indicate that the
Nation Is poor, that the man on the
street has no buying power? No-from
the standpoint of the depositor, the
savings banks of the country represent
great warehouses Of stored up potential
buying power. Sooner or later, when
the unreascning fear which now grips
people y dispelled, this purchasing
power win make itself felt In hlling up
the vacuum created In the period Of
underconsumption through which the
country now Is passing.
Meanwhile, the savings banks are
using the vast deposits now being
thrown at them for loans on real estate
and In the purchase Of rail, public util-
sty and industrial bonds. This in itself
g another evidence that we are IN the
early stages Of returning normalcy.
II We win but remove the blue spec
tacies from our eyes we viii see the
great corporations Of our country with
tremendous SURPRISES. At the top OF the
Big bull market these concerns were
lending nearly $4,000 000, 900 in the cal
money market. Such loans now approx
ixnate $500, 900 900, the funds with
drawn now being used In more produc-
tive channels.
II, with clear vision, we appraiSe the
present position OF these corporations
y IS found that current earnings dc
not present the gloomy picture yisu-
allied BIZ many on both Main Street
and wan Street. Many companies now
are enjoying larger earnings than last
year Reports for the first six months
81 1890, the latest period for which full
compilations are available, show more