Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-25
AMERICAN BUSINESS OUTLOOK
OF WORLD CONSEQUENCE
BY FREDERIC J. HASKIN.

same high price for their product. pock-
citing the difference as o swollen profit.
When the supply becomes top-heavy.
the high-cost mines disappear from the
picture and the low-cost mines furnish
all the copper the public demands and
supplies 1t at a lower price. Here u
definite saving.
Yet, on the other hand, the owners
Of the high-cost mines are bereft OF
any, profits at all and the men who
worked those mines are out OF employ
ment. There Is a definite contraction
In the sum total of work being done IN
the world. Copper Is fairly typical OF
many industries.
But 1t all works out. Stocks of high
priced goods gradually are moved. not
infrequently at heavy loss. 1t Is like
pulling tooth, however. The sharp
and painful operation brings relief.
When the loss on inventories has been
taken, the goods disposed of, the busi-
ness world wakes up one day to the
realization that stocks have been de-
pleted. AS always, at the reckoning OF
demand, the price scale goes up and
the wheels Of industry begin to hum
to I'LL the void. Employment is gem
eral and wages rise. SO do profits.
| Speculation follows and another boom
| Is on.
It is all so intensively human. Mr..
Hoover and other economists have tried
| to get industrialistS and the public In
general to accommodate their activities
| to q more placid pace. SO far there
has been little result There has, In
deed, been q larger response to this at
tempt at controlled cycle as the re-
suit Of the efforts Of American indus
trialists this Winter than probably ever
before.
Advertisers Use Slack Period.
Leaders of industry have done what
they could to make work for employees.
One Of the most effective strides taken
In this effort to smooth out peaks and
valleys is in connection with adver-
tising in newspapers, magazines, on bill-
boards and in every other way. Pro-
ducers are gradually learning that Q
slack period Is the time in which adj
vertising is of the utmost importance.
Even though purchasing power may be
temporarily lessened, producers are
learning that to keep their products
constantly before the public insures
patronage at the first sign Of improve
ment.
At the first sign of business improves
nent fresh capital always appears in
force to boost enterprises, new and old,
and set the business top spinning with
accelerated force. There Is something
mysterious about the manner in which
capital, always timorous, hides away
ct the first indication Of bad weather.
but rushes forth again like Spring flow-
ers when better times promise.
One reason why the world blanes this
country for this winters brief bout Of
business depression Is that the last dec
I AIDE has brought forth q veritable ava
1anche of new industrial inventions
which have saved labor and increased
production. These inventions have been
adopted by most industrial nations with
the result that products have been
leaping from the factories at q record
rate, at the same time requiring fewer
workers per unit for their fabrication.
The big job now, 1t is agreed, is to
stimulate consumption. Lower prices
already are here and this development
always means an increase in buying.
But there remains the old problem Of
finding some method of checknating
permanently the recurrent Gistresses
caused by the business cycle. It Is
nowhere reported that either the ant
or the honey bee Is troubled by these
business and employment difficulties.
but then they do not have the handicap
of being human.