Evening star., 1934-07-29

been considered six months ago when
the second and most radical part Of
the Governments monetary plan was
adopted This will compel larger
appropriation for relief and more
extensive purchases by the Govern
ment of live stock end agricultural
products However. there is still a
strong tide flowing IN the commercial
and industrial world and it is on the
maintenance of this that business de-
pends for its encouragement and its
advertisement in the next few months.
More Recovery Signs.
Certain facts indicating the healthy
state of business and suggesting the
growth Of this have been noted this
week by statisticians of the N. r. A.
Some are trivial and may be dis
missed as Of small value In confirming
the presence of recovery On the
other hand, such reductions as are
shown in the total Of personal loans.
in building and loan obligations and
in the overcrowding OF tenements and
apartments. as families have been
compelled to double up" and are
now released BY better incomes 10
their normal home life, are clear
proof that the situation is manifestly
better and that it will hold its gains.
From commercial standpoint the
current record of mercantile failures
is additional evidence that the era
of liquidation of traders, jobbers,
middlemen of many sorts, and of the
survival of the flttest" has been
completed. For defaults in the first
six months of this year were so per
cent less than in 1888 and 60 per
cent below the same 1882 period.
A catalogue of statistics as of the
end of July, 1888, and one at the
close Of July, 1884, would show at how
many points improvement has oc-
CURED, except in the market for COM
mon stocks and for speculative corn
modities.
Most important, probably, is the
gain IN factory employment and in
factory payrolls, the one about 40
per cent and the other 10 per cent
greater than IL months ago. Another
significant indicator is that of the
commercial paper holdings of the
New York Federal Reserve Bank,
which are now the highest since
November, 1881, and nearly so per
cent in excess of those of last July.
1t is estimated that the appreciation
In the investment portfolios of the
banks since the low average of the
bond market was reached last year
has amounted to 81 900 000, 900. This.
IN itself, and without the additional
support of the guarantee of deposits.
would have recreated faith among
depositors in their institutions.
The same degree of improvement
has occurred in the securities lists of
the life and fire insurance companies.
so that there is today little of the
apprehension among policy holders
that was so apparent in the early
part OF 1888. AS a result there has
been steady growth in new life
insurance written in recent months,
and comparatively few new applca-
tions for loans.
The Road to Recovery.
Up to certain point business re-
covery may be excited BY artificial
means. Too long a period of stimu-
lation. however, leads to a relapse
and enervation. This faces the
country today if it is not ENCOURAGED
TO strike out in its own f. shion and.
by its wit and initiative and energy.
recover the reasonable profits lost
since 1880. The experiment with
devaluation has had its place in the
reconstruction period. 1t is senseless
TO depend on ii further.
There must be, within year. a
restoration Of confidence. the re-em
ployment of at least half of the
present army Of 100000 unem-
ployed and an understanding between
capital and labor that promises per-
manent amity between them. The
irritating features of the N. r. A.
must be removed, those who have
borrowed from the Government must
be encouraged to repay as the banks
and the railroads have been doing
and the actual balance must be
struck between Government income
and outgo. Business men must be
given sufficient latitude in their
policies to insure fair profits. the
relation between the cost of living
and wages must be held at an equi-
table level
tCopyrisht- 1884, by the North American
Newspaper Alliance. Inc