Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-09
TRADE BOON SEEN
IN DEBT PAYMENT
Return of Many Workers to
Jobs Clears Way for
Settlements.
Special Dispatch to The star.

NEW YORK, February 9.-"How can
business be put back on its feee?" Is
what everybody is asking today A le-
gion of remedies have been, suggested.
Increase purchasing power!" says one
group.
Yet we must not overlook the fact
that business recovery depends not only
upon the ability of the family to buy.
but upon its ability to pay for goods
previously bought on credit
According to the National Retail
Credit Association. about 5000, 100000
of retail credit is delinquent. These
frozen credits prevent the even flow of
money and prolong the time necessary
for the return to normal conditions.
Personal finance companies, which
have only recently become a vital part
of the business structure, are strong
forces tending to accelerate business re-
covery They aid both consumer and
retailer in difficult times and provide
source of supplementary credit not
available in previous serious depreSsions.
Now that large numbers OF men are
being put back to work, the personal
finance companies enable families TO
obtain ready cash to liquidate their OUT
standing debts BY this means. large
sums Of money can be released Tor
business expansion and trade stlmu-
lated all along the line from consumer
TO manufacturer.
Legge's Advice.
Alexander Legge, chairman of the
Farm Board sees no future Tor the
product of the American wheat farmer
outside of the United States. Russia
will dominate the field in the next few
years. The world market price VIII be
in her hands.
The American wheat farmer, there
fore, must not raise more WneaL IMAM
he can sell within the United states.
He now raises one-fourth more than ne
needs. Approximately he produces 8OO,.
OOO. 600 bushels, of which 6OO,0OO,OOU
bushels is consumed within the Unlteo
States. .,.,, =
"Cut your production to your nation
al consumption. There's no hope otneI-
wise" says the Farm Board chairman
And he is right.
COttonseed Products Survey.
Earl s. Haines, executive secretary
| of the National Cottonseed Products
Association. has completed an economic
survey of the entire cottonseed prooucts
| industry.
| that many OF the cotton mills through
out the country are taking more Toll
| than they deserve-and the FARMER Is
i getting much less for his cottonseed
| than he should-it brings to light some
| interesting data.
The value of cottonseed products for
| the last three years was S754,OOO,OOO, OF
which S499, 0O0, OOO-or Sol per CENT
went to the farmers; S76,27l ,000-or 1O.l
| ner cent-to the seed merchant or those
who interviewed between the farmers
and the mills; $29, 253, 000-or 3.9 per
cent-to transportation; S14l, 1907 OO-
/ or 1877 per cent-was required TO cover
| total conversion costs; $2.299, 000-or
| two-thirds of l per cent-Tent Tor
Federal income tax, and only $6,526,OOO
OR nine-tenths Of per cent-Was
retained by the mills, representing their
net profit.
$50 the average per ton profit taken
by the mills was only A cents per ton
during the three-year period, said Mr.:
Haines. This shows the falsity OF
the charges that have been frequently
made that the industry Is making large
profits and paying the farmer too little
for his seed"
The association expects to continue
its investigation and make further re-
| ports from time to time. This first
report is a most helpful one for the
industry.
Opposing Systems.
Upton Sinclair, American novelist,
has been labeled a Socialism, out
spoken, fearless Socialist. In Southern
California, where he lives, he Is known
as a quiet neighbor and an expert tennis
player.
Recently in a communication to the
] New Republic he sized up his economic
philosophy in this short paragraph:
! There are only two methods by
which the production of the worlds
wealth can be handled. The instrument
and means of production can be owned
by private individuals and used COM
petitively for provate profit, or they can
be publicly owned and be used co-opera-
lively for social profit. The fruits OF
the former system are what you be-
hold-poverty, unemployment, crime,
war and revolution; while the fruits of
the latter system will be peace, pros
perity and happiness for all mankind. :"
In the capitalist system the dynamo
that drives it ahead and gives it life
and support is private profit. If this
factor is eliminated, such as is contem-
plated in Socialism. what motive will
supply the drive or the dynamo to hold
together and push ahead the social
order? This is the key to the fight
now raging throughout the world be-
tween these two schools of thought.