Evening star., 1932-01-06
BANKER SEES SIGN
OF BETTER TIMES
Head of U. S. Investment
Group Finds Basis Laid
for Prosperity.
BY ALLEN NJ. POPE,

President Investment Bankers Association
OF America Executive Vice President First
National Old Colony Corporation
The way to view the year 1881 is as
an increasingly solid pathway to gen.
eral economic solidity. In view of the
present natural state of the public
mind toward any statement that savors
Of optimism, it may be helpful to re-
view briefly the reasons for this state
ment.
In 1880 we faced the surface hard
ships resulting from drastic declines
in commodity prices equity prices and
prices Of other securities which, though
often and usually considered sound in
veStmentS, were not OF the most con-
servative class.
Up to the close of 1880 there was
latent in the minds Of the majority,
without question, that although the
price reduction was drastic and the
evils attending it were serious never
theless it was still to be hoped that
some miraculous turn for the better
would restore the well remembered
years of 1928 and 1929, which still
stood out in the mind in all the rosy
hues that had marked their triumphal
progress.
Readjustment Slowly Realized.
As the year 1881 progressed and as
even the highest grade investments
joined in the preCipitate price reduc-
tion, and as the industrial and utility
concerns, banking institutions and, by
no means least, governments began to
take stock of the situation, fear and
chagrin and melancholy having had
IoF,- fhp,1Oht hapnT1n
eral. It was a gradual but certain con-
viction that a return to the specula-
tive days of 1928 and 1929, to say
nothing of a few of the years immedi-
ately preceding, was not what was de-
sired or what was good for US 1t
turned out to be a surprising thing to
find how uneconomical, inefficient and
unquestionably wasteful some and
many Of the methods and practices
that had been allowed to creep into
our public and private, domestic and
international affairs, had unWittingly
and unknoWingly become.
BY the Summer and early Fall OF
1881 there was a general conviction
that we were face to face with a COM
plete readjustment Of relative prices
and services and complete readjust-
ment of thought and conditions to meet
them.
Solid Stepping Stone Viewed.
Without question the full realization
of this tremendous economic change
was coincident with the cessation Of
blind fear Fear is always engendered
more by anticipation than by full reali-
zation. The fog of mystery, in other
words, that surrounded the downward
plunge Of prices suddenly was pierced
and we suddenly, as it were, came to
realization of where we were and where
we could land. 1t would not seem too
optimistic TO even venture the remark
that we had landed.
For this reason it seems We are on
solid stepping stone that leads to more
solid economic stability. We have been
encompassed with many hardships. The
experience has taught us how to an
ticipate many that will come. AS month
has followed month we have learned
to be patient In the year 1881 we
learned how to work and learned that
work is necessary. In the last half Of
the year there was a growing convic-
tion that not only is work necessary,
but that working together is essential,
both with those within our borders
and those without. Intelligent, hard
work has been the panacea for over
coming difficulties since the world be-
gan, and it seems possible that for a
year or two we forgot it. 1t seems GER
tain that we now realize it and it seems
obvious that we are going to apply it.