Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-25
u. S. BUSINESS HELD
iPURGED BY ILLNESS
{ Strength Is Now Returning by
Hard Work, IndustriaIist
Declares.
BY C. w. NASH,
President the Nash Motors Co.

FIeSluenb the NASH w.
American business is emerging, purged
and fortified, from its seventh serious
sickness in the last so years. Its
strength is coming back slowly on the
wholesome, oldfashioned diet of hard
work, clear thinking and public de-
inand which has long since used up
manufactured SURPRISES.
In my opinion, the long normal period
ahead is going to work up to the highest
and soundest degree Of national pros
perity that people of this country have
. ever experimental prosperity based on
eaualized distribution, the systematic
utilization of our wonderful machines
to supply universal employment and the
necessity of placing an honest value on
all products and on the shares accr1ing
from those products.
On Economic Upgrade.
That we are we'll past the valley OF
depression and are definitely on the
economic upgrade can hardly be ques-
toned by the most gloomy Of our
alarmists There is every indication that
the manufactured stocks piled in during
the so-caled peak prosperity period
have been exhausted. Current demands
have already caused a general increase
in factory operations. Banks the coun-
try over report maximum savings ac-
counts and a great surplus Of cash for
use in legitimate business channels.
ReorganizationS along more economical
manufacturing lines have been going
forward for months and industry Is
again on an even keel, and most i'm
portant of all, questionable business
policies and many of the unstable BUSH
ness organizations have of necessity
BEEN weeded out.
Leadership has passed into the hands
of those men and those organizations
who have proved their ability for lead
ership.
Repetition of History.
Our business history is simply re-
peating itself. The formula which has
governed so many years of American
life shows that the trade trend Is up
ward. No depression experienced so for
has lasted more than a year or little
over-14 months at the most. Our last
hysteria might be measured by Is
, months, If we consider 1t from the peak
period in 1929 until the bottom was
reached in 1880.
1 believe that the other panics, or
business depressions, in our history had
much more cause for being than the
last one. They were brought about
mostly by lack of money. They were
really money panics, or the natural de-
pres-ions which came after industry
had been geared too high to supply war
Materials
This. one was mostly mental and
speculative. It can be likened to ma
tlonal sobering-up process recovery
from speculative spree: The lack OF
money or resources had little to do with
it. Lack of foresight in production
schedules, which many manufacturers
pushed at top speed, even while the
public demand was lessening, and the
general lack of attention given to their
own personal undertakings by many ex-
ecutives who could think Of nothing but
paper profits on the stock market did
cause q national and individual finan-
cial panic. There is plenty Of money to-
day and unlimited opportunities for
success for the organizations which give
honest thought to their jobs and place
honest values on their products.
First Affected.
The automobile industry, which has,
since its earliest days, felt the first
periods of depression and also has been
among the first to feel the return to
normal buying has before it one Of the
most interesting and constructive years
in its history. Like other branches Of
industry, it has already experienced the
initial replacement demand.
Automobiles are q vital necessity in
the life of the world today. The nor
NAL replacement demand, which was
reduced last year because Of business
uncertainty and fear, Is of necessity
opening a comfortable market for the
car makers who have merged quality
and price of their products to fit the
preSent-day purse. Cautious motorists,
who for years have proved to them
selves that 1t IS both economical and
pleasant to turn in thcir cars on new
ones regularity are now ready to come
hack into the fnnrket and take full adj
vantage of the new and higher values
which may be had today. In this class
of 1881 buyers may be listed not only
the regular percentage Of owners whose
cars should have been turned in last
year, but who made them do over the
period Of uncertainty, but also the great
army Of owners whose confidence in the
country and its permanent stability has
returned, who know that an immediate
return to normal buying will solve the
unemployment problem and will speed
high prosperity. This class Of loyal
Americans are also thoughtful Ameri-
cans. They can see plainly that buy
ing on today's market will give them
advantages unequaled in the last dec
ade. They know that right now they
are in buyers market and that their
dollars will 60 farther than they have
in years, and probably farther than they
will 60 within the next 5 or 10 years.