Show f I I Is Painfully Starting Back to N orm 1 S NESS WORLD L ES CONDITIONS ORE CLEARLY c. c dv of Situation Is Advised by Bankers t Loose Many lany Bill Turns teasing Leasing iMan n Millions of Dollars L R Rv Percy Cropper ill Jl at V VL L conditions ER EI week in most J J of Cf the ws a clearer there of V the Ilic inS inS' prices under Irom ASre As t of credits ti eing up timi it there re l SS Would and d s acts weIght their wn I Ie to bear help for artificial Ting ring through war cou i ons is s under WaYe way I Ie I to I If e are c. c n prices be I Ie f by that bus bus- I I 1 bre e lre back to nori nor nor- n roo ing nor nor-I quarters i n maD many have hare to b bi inin inie in- in inI I ill vilI to I earnings arc if f in ie volume I lamEd last tile the 1 I d was decline rate I up con con- it il jd cIlI the week Il J I. I riD d or oC I I iJ to tD b be the England time to t CO come j over tile the i uneasiness I I to III eboW Mil merelY mere on 00 the sure sur- I wt i it Is tho doubt but what hat ere re Is no help LU Eu- es 1 have bave much to I the II I today todar I Ii cJ Is Ii yio tho Ud lad loaned The Tho operator operator- rul estate I i to i a reverses and dot do- do tal take a position t he c back bacI d tn the tue money I and banker I c ciSter he be met the II had done bat lie t e m-er m set get out of oC debt that just I You will 4 tU baller 1 J in always In Iii InI to keep you rou OU b lItre gire I will I loan you ou just justI II back baCi in business again 18 to get gel I I cannot see ho you OU I I rood t nu rn b nick inck ck n any ot other othOr 1 4 W U LJ 1 W f I greatest need at present V state state- i to be a 1 financial rau a Tibo will be what Sir SI Crt lm was to England of or ds day Such a man It Ita a td ed would be worth i ti England The main show i tl I tent this year tar In Eng- Eng V sot Dot t be housing nor prof- prof tar tor shipping It will be bo tax tax- lt this year ear It Is declared unprecedented It will con- con bg er percentage of ot Income fbi u. u ever done dono since tho the days das of or orL ors II L I. s 1 one half of tho the p peasants peasant B s liken away array b by the tax colm col- col m Gen Ceo O Creagh for forin forI in I commander In chief in lop In- In p fur d showed a govern govern- cit elt of It paid rr t it did on tho the war d bt si I. I sot not from revenue and it itt t at t all on tho principal of or ort t tM chief troubles with rUh west est lag it t pr present fent Is taxation Un- Un Income and excess profits tax I ire are changed to allow some somo to mining there aro a a at t ef rich properties where the thet theet et t Las 1116 declared it will not I an and production un- un I t 11 Ii a cl This is In spite I V that the silver r lead and andare I els are Ore in fri excellent t shapo shape g good rewards It Jt Is do- do tot that where bere there are arc rich rich- ore rt re is il no roO use In dr depleting tt getting sEtting a moro more reason reason- PHage t of th tb the oil leasing I bill is I I I I I I I I 1 I I J I I J going groins to mako make Wyoming Oio Uto stalo with the lightest amount of ta taxation In tho thio United States The fhe bill turns loose many millions of oC dollars in that state that have havo been hold hoM for Cor years Within the next tow Cow weeks there will willbe willbe willbe be some new developments that ma may make moro more changes In the attitude of ot business The reserve bank has issued Is Issued Is- Is sued Its edict that makes moro more business business business busi busi- ness concerns finance their business out of or earnings but the comingS coming discussion dis- dis I J In Congress on the peace treaty treah and the turning turning- back bacle of ot the I railroads on March 1 are arc features that I are arc yet ct to be considered A decision by br tho the United States supreme court on I stock dividends will also have hlo Its ef of- Tho The banks are arc endeavoring to keep money as liquid as possible and to show that there those Is no short cut out to to normal conditions President William A. A I Law aw of or the I First National bank of Philadelphia InI in his business and financial outlook says says ays This ration gallon never nOer faced raced more complicated comI com corn problems In business and fi finance rl- rl nance than those confronting tho the I. American people today todar Important changes are arc imminent and there aro arc definite Indications that the process of ot deflation has set In and that tho country country coun coun- tr try Is headed towards other things than record commodity prices furious Curious I speculative e activity and cas easy monc money rates rates- This does not mean that wo we arc aro approaching approaching- a a. severe financial dis dis- dis The chances chancos of that fortunately fortunately fortu fortu- natel have been een materially lessen lessened d by tho the action o oC of tho the federal reserve banks In advancing ad rediscount rates to 6 per cent That has do done dono no moro more than thon anything else to make maleo tho the country appreciate ap ap- ap- ap predate the complications that have ha grown out of or a GS S per cent Inflation of or our currency since the war be began an and the expanded c 1 loans reported b. b by the national nn-l nn ctt l. l f I iv 1 oft l I I I 1 MI v v s 01 J VL L United States I While the ft of or tho war period his lis Is over the situation though different I demands constant stud study and care on onI the part of or those engaged ens in bunking banking ing I and business Tho The people of oC America may yet yet yet-bo ct bo called upon to make hC heavy l personal sacrifices for Cor the general good just a as during during- 1917 Ini and 1918 Source e of or Trouble So o Ion long as os men spend spond more moro than they produce tho the cost of OC living will not only sta stay high but It will go 0 higher Were it possible to get et organized labor to consent to a hour sIx week until 1923 with proportionate additional compensation atlon production would so In Increase In- In I crease creaso as to force torce a general lowering of or prices This supports Charles M. M Schwab's contention that the tho only wa way to reduce the high cost of ot living is IR to get together and got g-at to work Good old fashioned work and plenty of or It would woul do moro more than anything elso to our national wealth and put us In the front rank of producing na nations nations na- na at tho the er very time when per percent percent cent efficiency would yield richer re rewards rewards rewards re- re wards than over before In tho the worlds world history No o man ever er became a captain cap cap- tain tam o of t industry working only eight hours a da day and looking constantly at tho clock chock Some economists ec see seo moro lower commodity prices b by n next autumn but emPt empty shelves In this and country restoration res res- of ot the wrecked war Industries abroad present an ar- ar argument arment ment to tho the contrary A veritable famine exists In some somo branches of or merchandise and nd many manufacturers In this district can testify to the Increased difficulty of obtaining an adequate supply of oC raw materials Tho The situation calls for tor IntellIgent in In- In handling however cr as conditions conditions condi condi- In different Industries L Some mo Interesting statistics as to conditions arc given gf as 5 follows by tho the Utah National bank Bank C clearings for tor December were Wore 4 setting etting a now high record rec- rec V ord for an any month and with Ith 0 tho the month and a year ago ao E Exclusive o of New ew York rk City clear clearings wore were 18 US- 18 0 compared with Ith the month before and ami 1 0 cent a year ear ago a ar Increase Increase or of c so 0 0 P Per POl r rot c ot or gol gold Eold for for December wore were with wih Imports of OuO leaving a balance of ot gol gold movement against this country countr of ot for the thc month an and for the year Business failures durin during December numbered 53 compared with wih 90 the thc previous month and ond for Cor December of or last latt year ear Liabilities of oC the railed concerns were only compared com corn pared with nearly tho pre pro month and for Cor De De- cember Ins 1918 Corporate financing luring during December Decem- Decem ber fu totaled compared With wih tho the previous pre month and i dollars a year car ago No railroad financing was wa Included c In the months month's total the majority of ot tho the new hl cs being being- put out by Industrial corporations and of the tho amoUnt being used for replacing replacing ma- ma Corporation Financing New and largo large corporations formed during December had bad an authorized capital of oC compared compare with Wilh tho previous lou month and Ild in In December InS tho the increase ov over r the thc same samo saro month a year ago go L being being- int per cent cent A number a of ot important consolidations of oC large largo corpOration cr- cr cor cor- now under consideration nay may lal tale take e place during during- durIng tho year Money In circulation ut at Lh the beginning begin behin- ning of oC the year car totaled corp compared with t a month before and a n year ago maKing a a money circulation per capita oc ot compared with wih 76 a capia year n ago o. o Tho f general stock of oC in Iii money the uio i T 11 United States la is tt 7 com com- d with win a month ago and 1919 at t the beginning of ot Dividend and Interest disbursements J January Januar will amount to A n 9 compared with wih 8 the Previous month and In January of ot last hUt year 31 Of or the tho amount I Continued on 1 Following Page I 1 COMMERCE IS SETTING BACK TOjI TO jI j NORMAL FORM FOR Constant Study of Situation l Is r Advised by BankIt Banking Bank Bank- Ban Ban- It f ing ilg Interests Continued I. I From rom Preceding Page rage I Is dividends s will wm mako malio up compared with wih only 1 a year car II ago this being tho tho- tho second evidence c we wo restored in increased In- In have ha had recently of or I creased dividends while several con con- con I will pa pay Initial dividends en s In JanU Jan Jan- U ur uary ry Consumption of or wool during November Novem- Novem o em h ber b r was vas pounds compared Ith pounds the tho previous pre month and pounds In November No Xo- vember 1918 Wool stocks on October 1 l 3 were 6 pounds corrected figure corn compared paved with p pounds a year car ago aso Tho much much-dis- wool shortage Is not Indicated I by hy 3 the stocks 8 on 01 hand a as compared w with h a year rear car ago or b by Y the ll 1 during recent weeks as compared 1918 lOiS with the corresponding weeks week of C Certain grades of wool are scarce boo however ye r. r The he sugar supply available for forU U United led States consumption durIn during during- the rr present sent sugar y r year ar amounts to S 82 pounds per capia capita compared with ih a supply of or 89 SO pounds per er capita In the 11 1911 I. I The sugar shora shortage o has ha not C CU The area of oC winter Inter wheat sown In th the fall fal of 1919 totaled acres compared with wih acres sown town th the the- previous year Tho The winter ryo ro area aria area is on only I acres compared with 3 MO acres a year ear ago ago An n planting of spring unusually heavy J hea spring Wheat heat wilt will wil bo ho 10 nee needed ed to insure tho country against a a wheat shortage a I year car from now no In spite spite- pit of a a. 3 consider consider- carr over carry o er of ot present present supplies The condition of winter wheat is not so soo o d as a a. year rear ago tho tho average eraS on S compared with December 1 being as wih 99 99 a year ear before Even Een with wih a a material improvement ement In tho condition of ot the crop p our export possibilities In winter eat lat will wU be limited Metal Production I Lead cad produced from domestic ores oIs durIn during 1919 totaled tons lons compared com corn pared with wih tons tone the previous cir Zinc produced from ore mined In totaled 0 6 tons compared tons the ho previous year rear an anti and 11 lake copper produced frOl domestic ores during 1919 totaled pounds compared with l io pounds the thc previous year Copper sales for November and December Decem Decem- bet ber are ae estimated at G pounds I the tho sales for December alone reaching I. I pounds about one fifth one of ot this amount to go abroad A sharp de decrease decrease de- de crease in stocks of copper is Indicated an n J expected i In 1 their marl market ot letter this week I lla Harden den Stone Stono Co sa say While it is is perhaps Impossible to pu JU ones one's finger upon an any ono one cause causo for for- forthe the present unsettlement In the se security security se- se curt market markot there are arc certain basic J j I I facts acts that ma may be safely laid down and I should be bo clearly grasped to get at ut an understanding of the present di dilemma di- di lemma lemma Fundamentally tho the chief reason reason rea- rea son Is Ismail Isan 1 of or capital at th tho very moment when there Is an abnor- abnor lah ally large lara demand Tho The normal re relation ro- ro lation laton between the supply and demand deman of ot capital has been greatly greaty disturb disturbed el This condition lia has been ben aggravated by byan an an unusually large creation creaton during the tho last lat two years cars of new securities which means the turning of liquid capital Into fixed Let Lel us bear In mind what c capital Is is namely accumulated S say sav- PCs the margin marln between production and consumption For five ye years ears past pat not only has this margin not existed but we wc have ha b been cn drawing drawing on past pat accumulations The granting of credit based Abased base on present foundations has reached the very er limit of safet safety Clearl Clearly the only remedy is to 10 increase the supply of capital and this can cn bedone bedone be bo done dono only b by curbing curbing extravagance and increasing production Fortunately Fortunate- Fortunate I h ly public sentiment tho the world over O Is crystallizing cr In favor Cavor of or reducing extravagance ex ex- whore where Its Is effect cHeet both di directly dl- dl recty and sentimentally will wil be bo most effective name namely in government exp ex ex- p Until the governments b will wJ bring their expenses within th their lr Incomes in incomes incomes In- In comes and show a surplus it Is useless to preach tho the doctrine of oC economy to the Individual Individual Tho first effect would bo e In a reduction of at high taxes High taxes not on only I. I arc are one of or the most potent influences toward high prices because ot of the premium the thc they put on high costs and carelessness generally but thc they tend to divert dhert what available Investment capital there Is from se securities se- se curtes of ot those Industries which need need neel lt to the tho nontaxable securities generally speaking are arc non non- of wealth The moral ex- ex of ot government restriction of ot cx- cx s would ut perhaps bo be 0 even greater direct Influence 4 iu ii t. t Aimed t k p. p at ut Commodities i- i iThe The Tho restriction of or credits which I Is n necessary is held cessar generally hel to tobo tobo bo l bo o aimed at commodities aa as 3 much as securities If I this should have 0 the ef- ef e- e of or releasing stocks of or com tie lel carried on borrowed money and poro oro particularly of or discouraging this rj well el and good but an any i ton of or commodities does docs not add rd ne ne Iota to production The of or the world today Is 18 underproduction What u Wat Is needed Is more pro production and that shall furnish tho the means 4 j a production and let it always as ah b be re- re that capital in this souse sense Arises ases In far tar larger larer measure through I iThe saving of or ordinary individuals te Iduas titan than Mt tt docs does from the surplus |