Evening star., 1932-01-31
|PUBL|C FOLLOWS
PENDULUM TOO FAR
General Swing Held Beyond
Actual Facts of Business
Situation.
BY COL. f. s. GORRELL,
President, Stutz Motor Car Co. OF America


President, Stutz Motor Car Co. OF America
During times of depression, the pen
dulum swings too far, tust as it does
during a period of good business con-
ditiOnS And it is usually the tendency
of the man on the street to follow that
pendulum. swinging beyond the actual
facts Of the business situation, rather
than the situation itself And the atti-
tude Of the man on the street is what
counts.
Reverse of Period.
In my opinion We are now going
through a reverse Of the period between
the time when prosperity actually start
ed slipping and the Gate Of initial mar
ket crash. The difference is that, al
though business may be getting back in
shape once more, We have no hearten-
ing, spectacular signal that AIS Well
comparable to the diSCOuraglng signal
in the form of the stock market crash
that announced that the depression
had started.
The public hopes that 1882 will bring
the end of bad tlmes-but is drely
afraid that it won't. one hundred and
twenty million people want to be Just
little more sure about things before
y
gin the normal American spending that
is 50 essential to normal inflated
American prosperity.
Cold figures as published from time
to time by Washington VIII not Suthce.
Our last tariff wall which wrecked our
export business and killed all hope
of reyivlng export business in the near
future. did added harm because Of the
manner in which its enactment was
banded. Congress fought about it so
long and the world talked about It so
long that it became a bugabOO--it had
q psychological reaction of fear on for
elgn countries.
Likewise, this depression is being
talked about so much and is being
drawn out SO much longer than 1t
should be drawn out that it is having
the same worrying effect on the public
in the vernacular 1t had got the
publiC'S goat
Industry's New Year.
At this time one of Americas great
est industries begins its new year. The
annual automobile shows are opening
New models. new styles. new COlOrS new
improvements in motor cars are making
their appearance. Few other American
industries. in my opinion. viii make
such brave. COlOrtW end confident
showing for 1882 as Will the automotiVe
industry.
Millions Of dollars have been spent
for new tools. dies iigS and fixtures
to build these new mOdel automobiles
and at prices lower than ever before
considered possible. The gigantic funds
for such expenditures haze been raised
among the industrNs officials them
selves or have been taken from the
al ,F u
In this business
Few business men in the country can
fan to admire the spirit and force Of
the executives Of the autCmO i've in
Gustry and their courage and resource
fulncSS in continuing to Try TO make
prOGreSs.
Where the ayerago business man is
dollar the automot NsAmpanH;tesst 81 in
this depression, as in all former ones
are working their die and tool shops
day and night, taking on additional
numbers Of wOrkmen, introducing new
styles. new models new ideas and
wagering their entire capital that there
is business to be had and that it can
be had.
Courage Needed.
Ii is courage Of this nature to the
tune OF literally hundreds of millions
OF dollars that inspires the confidence
OF the man on the street when once
it is brought to his attention: and
raises the admiration of the average
business man for the automobile ex-
eCutive
In spite of the depression extending
throughout all last year, cars were run
more miles than ever before IN the
history of the United States. Now they
are wearing out. Today people need
more new cars than they have needed
in any previous year. And the only
point which can prevent the American
people from buying the cars they need
Is the mob psychology of fear.