The Washington times., 1930-12-02
Economic Situation

Economic SITUATION
During the past II months we
have suffered with other Nations
from economic depression
The origins of this depression
lie to some extent within our own
borders through speculative
period which diverted capital and
energy into speculation rather
than constructive enterprise. Had
over speculation in securities been
the only force operating, we
should have seen recovery rlany
months ago, as these particular
dislocations have generally read
jlisted themselves.
Deep-Seated Causes.
Other deep-seated causes have
been in action, however, chiefly
the worldwide overproduction be-
yond even the demand of pros
porous times for such important
basic commodities as wheat. rub
Der, coffee, sugar, copper, silver,
zinc, to some extent cotton, and
other raw materials.
The cumulative effects Of de-
moralizing price falls Of these i'm
portant commodities in the pro-
cess Of adjustment Of production
to world consumption have pro-
duceed financial crises in many
countries and have diminished
the buying power Of these coun-
tries for imported goods to a de-
gree which extended the Difficult
ties farther afield by creating un-
employment in all the Industrial
nations.
The political agitation in Asia;
revolutions In South America and
political unrest in some European
States; the methods of sale by
Russia Of her increasing agricul-
tural exports to European mar
kets; and our own drought-have
all contributed to proIong and
deepen the depression.
RecuperatiOn Retarded.
In the larger view the major
forces Of the depression now lie
outside of the United States, and
our recuperation has been retard-
ed by the unwarranted degree Of
fear and apprehension created by
these outside forces.
The extent Of the depression Is
indicated by the following approx
mate percentages of activity dur.
ing the past three months as COM
pared with the highly prosperous
year of 1928:
Value of department store sales,
93% Of 1928: volume Of manufac-
turing production, SO% of 1928:
volume of mineral production,
800 of 1928; volume of factory
employment, S4% of 1928; total
Of bank deposits, 1852 of 1928;
wholesale prices-all commodities.
1870 of 1928; cost of living, 94Po
Of 1928.
Various other indexes indicate
total decrease of activity from
1928 Of from Is to 20 per cent.
There are many factors which
give encourag cement for the future.
The fact that we are holding from
80 to IS per cent of our normal
activities and incomes; that our
major financial and industrial
institutions have come through
the storm unimpaired: that price
levels Of major commodities have
remained approximately stable for
some time; that a number of
Industries are showing signs of in
creasing demand; that the world
at large is readjusting itself to the
situation: all reflect grounds fer
confidence. ,@-
Country at Height
We should remember that these
occasions have been met many
times before, that they are but
temporary, that our country is to-
day stronger and richer in re-
sources, in equipment, in skill,
than ever in its history.
We aRe in an extraordinary de-
gree Self-sustaining, we will over
come world influences and will
lead the march Of prosperity as we
have always done hitherto.
Economic depression can not
be cured by legislative action
or executive pronouncement. Eco.
nOIniC wounds must be healed by
the action of the cells of the
economic bOdy-the producers and
consumers themselves.
Recovery can be expedited and
its effects mitigated by coopera-
tive action.
That cooperation requires that
every individual should sustain
faith and courage: that each
should maintain his self-reliance:
that each and every one should
search for method of improving
his business or service; that the
vast majority whose income is
unimpaired should not hoard out
OF fear but should pursue their
normal living and recreations;
that each should seek to assist his
neighbors who may be less fortun
ate: that each industry should
assist its own employees; that
each community and each. State
should assume its full responsible.
tiles for organization of ,eV1aEalav.