Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-25
BY MARK SULLIVAN.


plcase don't run away-the bust
ness depression Much of it Is
Il going to be. not in the words of
the present writer, but in the
words of a book. yet why apologize
for writing about the depression? 1t is
the chief concern of every reader and
it is at the bottom of all our politics)
warn the reader, however. that this
book from which I shall quote is not
easy reading If you want your mind
made up for you by offhand Judgment
or plausible slogans or smart wise
cracks you can take that sort OF thing
where you find 1t, there is much of
it af1oat. But if you are capable CO a
little hard, tough thinking, read what
1 shall quote-and know the truth.
The title of the book, rather formi-
dable is Financial Crises and Periods
of Industrial and Commercial Depres-
SION" 1t is the best book ever writ
ten on this subject. To say any book
is the best of its field is. of course,
an expression of individual Judgment.
But I have many times discussed this
volume with students and teachers of
economics and with practical bankers
and men of business, and 1 can say
that all think of 1t as an outstanding
book. 1t is not new book. 1t has
stood the test Of time. First written
time, and 1t has run through some
eleven editions.
Burton Is Author.
The author of this book-he died in
1929-waS a plain man and a great
man. His name was Theodore Burton,
and at the time he died he was Sem
ator from Ohio. OF the IS years he
lived he spent 80 as Representative or
Senator from Ohio. He was a public
man of an older day, whose type is not,
unhappily, as often met today as in
earlier periods of our history. Before
he went to Congress he had been for a
time a lawyer and teacher in Oberlin
College, in which experience he gathered
to himself the scholarship, the patience
in investigation and above all, the
accuracy of thinking which made this
book the authority that it is, and made
Burton great public servant.
Burton was as far as possible from
being 'money-maker" in the ordinary
sense of the word; yet, starting with
nothing he died worth upward of half
million dollars. Excepting two years
he spent as the rather academic and
somewhat perfunctory president of
bank, I doubt if Burton's annual in
come for services in most Of the years
OF his life was more than the $4,000
to $4,000 year that was the pay of
Representative and Senator during the
time. To the last degree he was scru-
pulous, prudent, cautious. He accumu-
lated his fortune chiefly through prac-
tlcal application as an investor of the
economic and financial knowledge he
embodied in this book. He was mainly
an investor of the savings bank and
first mortgage and "gilt-edge security
type. He was bachelor, Of simple
tastes and economic bent, a natural
saver. I doubt very much If he ever
bought share OF stock on margin.
I doubt If he ever borrowed a dollar
for speculation or for any other pur-
pose. He never had an employe other
than q secretary.
Knew Depression Signs.
The secret of Burton's fortune was
mainly that he knew the signs of COM
ing depression and at such times he
turned his investments into cash; SIM
ilarly he knew the sign of the end
Of depression and at such times, when
securities were abnormally low, he re-
invested
OF the practical soundness of Bur
tons book, one incident is sufficient
evidence. There is in America today
a very wealthy and prominent man,
now in public life, who attributes most
Of his fortune to this book. II I should
print this wealthy mans name every
reader would recognize it. Being in
business in the early part of 1907 he
happened to read Senator Burton's
book. From it he recognized, in the
conditions existing around him, the
signs of an approaching financial crisis.
Promptly he sold all his investments
and commodities and went to Europe.
Six months later, in the Fall of 1907,
he returned found the panic in full
swing, waited until he saw-again from
Senator Burton'S book-the signs of
the end of panic, and bought back the
investments and commodities in which
he was interested.
Present Application Sought.
Now what is the application of this
scholarly book to today? What is the
application Of today of all sound
thought and accurate knowledge about
the past? 1t is chiefly in six words:
All depresSionS came to an end. A
minor lesson is that all depressions
follow much the same pattern. An
important lesson is that every depres-
sion comes to an end just about the
time when nearly everybody is sure it
will never end. Yet another is that in
all depressions. politicians and other
so-called leaders of misguided persons