The Courier News from Blytheville, Arkansas on January 2, 1931 · Page 5
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The Courier News from Blytheville, Arkansas · Page 5

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Blytheville, Arkansas
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Friday, January 2, 1931
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.?- I l I PAX'_ JAiS !. u A?X_ 2 '_ 1931 BLYTHEVH.LE.(ARK.) COUUIRR NEWS PAGE CENTURY OF AMERICAN BUSINESS TT~T -Ny.\n nil Allavd Smith Sees Good During Coming Year. rniTOR'S VOTE' Mhrd Smith Uil 'S55 l»»l)~ PrOSDectS for ReCOVCl'V Tnis striking chart, prepared by Colonel Leonard P. Ayres, ^ noted business expert of the Cleveland Trust Company, enables tlie reader to visualize the periods of prosperity and I depression in the past 50 years and sounds an who prepared Ibis article especially | '""<> by showing that depressions arc nearly alwr for NKA Service and Courier News ; ed by business booms. During the past, half century there Ib-onc cf the nation's leading; busi-I — r.eis expert'-. He is executive vice j ft'YI Ihe president of the Union Trust Com-1 piny of Cleveland, former manager ] of ilie Ohio Brll .Telephone Coin-j jany and former president of the Cleveland Chamber of Commerce. have been 15 periods of business depression—eight of them. Including this one, having been major depressions. T.ie black silhouette represents Ihe monthly fluctatloiis ot industrial and transportation activity, being constructed from n series of monthly figures representing such basic activities as thc production of iron and steel, the output of lex. 192? "" ' ' VJJ& IS3D HU's, activity in building construction, the movement of freight on Ihe inilroads and the like. The merely seasonal flucUttlons in each series nro smoothed out and, ill al, Hie normal line tends to represent amounts about half wuy between those of extreme depression and l.iosc of peak production. ig Push! >i By AM.ARD SMITH j (Executive Vice President, j Thc Union Trust Co., Cleveland, Oliinl I (Written for NEA Service) j Nineteen hundred and thirty war. | a year of economic shocks and dis- I appointments. It brought sweeping ' declines in commodity prices, in the financial markets, in industrial activity and iir employment—in short, a major depression, from which thc country had come to \elieve its?lf immune. From the peak in 1029 general business has declined approximately 35 per cent and the depression takes rank as one of this most severe in half a century. Not one cause, but many complex and culminating influences were responsible. Some of the most imporlar.l of Ihese adverse forces which were world-wide in their scope and in their eilecls were as j follows: 1. Thc increase of oulpui of coi- lon, wheat, copper, sugar, oil and other basic commodities as well as many industrial products beyond the ability of the world's power to purchase. 2. The failure of various plans for ^ the artificial stabilization of commodity prices such as for copper, crffce and others. 3. Thc decline in the price of sliver to the lowest level in the recorded hisiary of Iran. 4. Thc wild fling o! speculation chiefly in American securities culminating in 1929 which inflated values. Hired millions of people into the chase of "easy" v.-ealth and dislocated the world's credit structure. It is not easy to distinguish between cause and eflect for most of these adverse factors. Nor is it possible to determine wb'ich was of most importance in thc final bal- p.nce. Undcr-Consnmption and Over-Producticn Blamed Forces making for under-consumption have torn equally outstanding with those making for cver-production. One great development causing reduced consumption of the world's goods was thc collnpse of silver When this happened, largely due to Cue recent adoption of the gold monetary standard by India, there ivas a great reduction in t'ne buying power of about 25 per cent of the world's population as represented cy China and otlvr populous countries where silver is z s'andard of exchange. Psychological factors also hav: played a part in creating overconfidence and unreasonable optimism at the crest of the boom, followed by unfounded fears at the bottom. In recent weeks Che financial markets have been demonstrating th- lattc-r, just as in the summer of 1929 they gave way to the fcrnicr. In considering the events or the past year, il is important lo recall that, since the ibegmnin; of the 19th century there have been 13 p.rcat crises in this country in the following years: 1818, 1825, 1837. 1847. 1857. IR73. 1884. 1893. 1903. 1914, 1921 and 1930. r> cf Our I4Z Years Itr.vc Seen Depression Of our 142 years as a nation, approximately 35 have been years o! depression. Curiously enough, civilization ha: not learned how to avoid these cycle's, but the experience of thc pas' decs show many things which it i profitable to recall. We V.now tha roughly abou! every 10 years th:rare recurring economic upheavals which rre world-wide in their con sequences. But thc periods of ds dine and acute depression ar much shorter than the periods convalescence, recovery and pros p:rity. The cycles from peak to peak a\ crage 39 months in duration, wit 10 months of decline and 23 month cf recovery. The present decline ha persisted for about 10 monfr.s. Living Standard* Improve After Each Depression Another lesson ot pas: depres sions is that times of econom stress, while they bring wide su (Wins and distress, also have chastening effect. They compel m;n t:> face realities. They encourage thc payment of dcbls. recklessly accumulated in flush times. Thev rlimUatc savings. Thpy influence t!:e incre3!-e in individual and in- ro bring used up and worn oiil at faster rale Ihan ihey arc bring .eforrcd as long as possible, cans- IB an accumulated demand which oci";r or later miibl sllmulate re- overy. Al the same lime debts are bc- ng paid oft nud savings built up. 'urcliaslng power reserves are. Amoiig the great bnrnir?lrlc In- lustrlcs where nrrulucllon is nb- lormally low, are steel and auto- ncbih's As these Industries go. so ;oes general busin:ss. In 10'JO Hi? oulpui of Meel In- gcis declined lo 40,000.000 Ions, compared wllh 54,OCa,00'J Ions In 1923. cent Tills was n drop In 1021 compared of 31 with pei Thc average oulpui for llr; lasl 10 years was 41.000.000 Ions. Early In December tin. 1 produc- Amerlca Is not only nmunuUnlw; n demand for many ordinary necessaries and comforts ot life, but then? arc I5CO laboratories In tin Rcv. 0. It. EHls, pastor ot llw Methodist, church, who has been In n very serious condition In I ho Metliodlsl hospital in Memphis for several weeks, Is reported as being much belter nnd will bo able to sit up In n few days. Mr. (ind Mis. James Chroclmm ami children ot P.iducah, Ky., arc visiting Mrs. Cliroclmm's mother, Mrs. V. ti. ICellcy nnd other rcla lives here this week. Louis McCutclieii, manager of Hie I^akc Kami, Iransiivtcci business lien Wednesday. Miss Ilaullc Terry and Mis. Henry Oeslring of Cooler were shop plug nl local slores Wednesday. W. T. Ualley accoiniianled lil^ daiighlcr-ln-law, Mrs. Floyd liallej au<l infant child of Detroit, who are vlJ'.lliu: IH-K-. lo DlylhcviKe Wcdnesil.iy wlipru tbpy will sev<-ral days with Mr. ami Mrs. Oscar llallcy. Marllm Wllford. small daughter country cngnifed in developing IIPWJ products and new processes, .^loro patents lunv been applied for in tills country Hum in nny oilier year Is- adjusting of Mrs. Alma Clrissam, Is very 111 own to a farm two mile*. JrPBi I own. • • .-=4-;. Miss Mildred. Stone, teacher it 3otion»'ood Point, has returned il- . :cr spending thc holidays wlth.htr ' nothcr, Mrs. Alice Slone of this city. •-';:Hoy render will return to Uif University of Missouri at Coluai- bio soon alter spending the Jioljf -. days wllji parents, Mr. and Mrs, P. E. Pendcr. ' : •; • Miss Bill Kllllon ot Portagevlll* Is the guest of Miss Ruby Bwker'. Mr. and Mrs. Ralph Cuups of Deering were vUltlng relatives here Thursday. Joe SclioenncW of Flat ' Biver; Mo., wns n visitor here Tuesday. ;- Mls.ses Eugenia Jenkins nnd Alice Mcnnnlel entertained a number of their Irlemls with a theatre and wiitcli party New Year's Eve. Tho. parly left the liomoof MlssMcDan-J lei at 7:30 for Blytlieville wherd they attended the Hll2 theatre, nnd w ' with n severe cold at 0 home near Stcelo. Ilicir country in history. Industry, moreover, lo new conditions mul lower puce levels, lly other means than wage cuts Industry is devoting Us gcnlius to the discovery of mow efficient methods ot production. Unemployment, is a serious factor In Ilie current situation .bill many plans have been made for alleviating this condition through public-spirited efforts and Hie projection of public works. Mr. and Mrs. Dixie Crawford of Blvthcvillr were me.sls of ll:c Int- U'r's parents, Mr. nud Mrs, Win. Mauley. Sunday. Lan liurns wns a social caller In lliytlicvllle 'l'ucs<lay cvcnhu_', Miss Maude Alice lleasfey will return lo the University of Alabama where slie l.s returned to II o'clock imlll I! came on. M"'iantcl's .;-•«! games .'tiio muslo Of Ihc approximately 45,000.000 tton of sleel ingo'.s dru|ipe<l lo xjnnd salaries In this count ly thc A". '''') ,? r^o nou-i-n nnd - I . - ,.,„ ,„,, „,. 1*11. mill iMl."i. U. \-T. JIUUt-U 11IK1 people normally employed at wages Friday After iMiJoyhii; tlic Jwhdnys with parents, Mr. and Mrs. T. C. Ikxslcy. ,Mr. nnd Mrs. J. P. Vlck and Dean, spent last week-end with relatives al Wilson. Ark. C. C. Cecil transuded business In level which It continued for u full yeor would ii'inn an output o[ about 25,003,000 tons. This wns so.lnr bjlow the Indicated normal requirements of the country that recovery seems probable scon. In Deccml-or the output of slccl was below 40 per cent of capacity. and whenever this has happened In the past II ha;i signalled revival. Steel is ncignlzert ns n reliable measure of living standards anil steel production In 1930 was about 700 pounds per with 4 CO In 1921. major portion are working full or purl time. Those Who Can Buy And Won't, lllamrd Those who are tnjoyliiR uninterrupted Incomes, but are refraining from normal purchases ihroimh fear of Hie future, are contributing lo the postixm'?- mcnl of recovery. Disturbed economic conditions are world-wide. America wns cue of the lasl lo feel the depression 'cawfla compiSdi nml the rest of the world IslooMnj 'to American eulerprl.sc lo lead thc ilias had its counterpart on the te- lean finance that-there have been curity markels. The. greatest bull so; few* failures'of-importance, markcl in stocks.'Of all time oil- .The banKlng system; of Anierllisica'lsi: . njinated in 1929. A.the'.peak-of this market in September of that year t-lic total value of stocks' listed on the New York Stock•Excrmnge/ ; wa.5 TOTAL STOCK VALUES ON N. Y. STOCK EXCHANGE (OM.OOO Jan. .. Feb. .. .March April . May .. June . July .. Aiig. . Sept. . Oct. .. Nov. . Dec. .. in dollars omitted) 1929 .... $67.472 71,060 71,872 ..... 69.770 73,719 10,921 77.2G4 84.232 89,668 87,073 71,125 63,589 columns 1930 51)4,107 69,003 C0.80S 76,015 15.301 75,018 03,892 67,221 67.721 60.143 55,020 53,311 of thc American people -that and satisfactions they could command out of their earnings —had increased by 55 per cent. Buying Power in U. S. Is Widely Distributed America's greatest contribution to the modern world has been the se- i 589.009.000,000. . crct of distributing buying power lo I At the beginning • of pecemb:r, ' 1930, ilie value of" these slocks wss $53,311,000,OOtJ a-shrinknge.of 40 per cent, • * .' Also at the peak in 1920'stock brokers were borro«1ng $8,6*9,000,'000 with which to carry the stocks for people \vlio had- purchased 'them' on margin. These loan's are" now about 52,000,000,000'(he -lowest ever recorded. . ' ' Thc Dow-Jones average of 30 industrial common slocks was at 383 at, i!s most optimistic point in 1929. Then there was a ruth'Of buyers.-so anxious to get the stocks that they were borrowing money at from 10 to 20 per cent. On Dec. 16, 1930, thc Dow-Jones average had sunk below 160, and buyers were wary, although money was lending at two per cent. Thus ihe stock m.irket has flatcd with the pendulum of values for many stocks- swinging as far helov; intrinsic wortli as they banking 1 system; of isqund. ' ' '' .. . Likewise. Industry: is -In a'',strong flnnnciai. position.- : ' - ; *" These .facts', arc- in striking and encouraging contrast ,with-d!sas- .ro'us conditions . which'-. seemed 1 ' to ' ' masses of people to n degree ever before witnessed in any ountry In any age. This has been cccnip'ished by mass production nd high wages. During the lai't- 25 ears wages in many great, indus- ries, such ns sice! and biii'.dinj. dvanccd by about 125 per cent, far verleaping the rise of prices. The great problem confronting he nation al Ihis moment fa the 'reservation of the public buying xwer. For this reason it is an im- portaiu factor in the outlook that mpioyers in many industries have nainlained a policy of hoidin': vages ot Unreduced levels. This should operate as a stimulant to ecovery when (he tide of business .urns because it. is a major protcc- ion for national purchasing power, i But buying- power is being recouped in another way. Tills is through the decline of commodity prices which means thai thc dollar's value in exchange for goods is greater. Wholesale Trices Now Lowest in 10 Years Wholesale prices have dropped about 20 per cent since 1929. They arc no'.v at thc lowest point in a decade. Many commodities, including wheat, have not been so low in a generation. The decline of retail prices, of about 10 per cent In a year, has been less sv;if;. as usual, than thai of wholesale values. This slower decline of retail prices is bringing commodities more nearly within the reach of Incomes that have-be;n I reduced and thus constitutes a fnc- tor making for renewed buying. On tl'.e whole from present indications prices of raw materials are now attaining a degree of stablll- 7ation. swung above it before. In the face of this terrific lor- reni of deflation il is a great tribute to the basic soundness of Amer- off In this depression than In L previous one- ny Autos Must Soon Be Replaced Automobile, i production bears out this conclusion. In 1030 II totaled} about S.SOO.CCO, or doub!.-; thc number turned out In 1021. It is upon the automobile industry that tlic attention of Ihc business world is now focused for signs of recovery. This trade Is responsive to the buying ability and moods of Ui£ public. Its power to stimulate or retard oliior Industries Just now tlic motor cur companies are producing nt nn nnniial rate of about 1,600,000 passenger!. »|i, II may be said Hint Tlici business enters 19:11 with these fa- I vorable. factor. 1 ; for the oullook: I. With over 15 monllir. of arde decline behind us, the depression, lias already persisted for the average duration of major crises. 2. Production during the past year has been below consumption In many Important lines, resulting in low Inventories nnd large deferred demands. 3. Prices of commodities have been drastically deflated and some stability and greater steadiness nrc now appearing. J -I. Speculative excesses have censed and iieople; now nrc facing . . . prevail - in -1803;. 1W7-. and '1921.'' '•To 'go no. further . ' : back than IL J 21, manyjof' .p'ur; gr"eat corpora- ions were suddenly -'caught with heavy unsaleable , Inventories and ittle cash. Financial erribarrass- menUi abounded. -Today Inventories ire not-heavy; for^mo^-co'tnpanies, while their caslr resources are iafgb. One of; Industry's strongest poipts this • year Is ;that it' has tept production at the level- of consumption or, in' many cases, below it America's population Is about 124,000,000. 'and of this number no farge proportion- have .undergone j cars and Irucks. . If tlris rale were ' to be maintained il would provide for about one-half Ihe esllmaled replacement demand of over 3.000.- CCO cars annually, lo say nothing of new buying. In 1921 il tllC bdi " B realities, working harder, saving more nnd building up buying power. Mr. and Mrs. W. T. Unllcy nltend- cd tlic funeral of Tom llnney of llayll Wednesday afternoon, Mr. llnney Is well kno\\-n In Slccle, for- iniTly conductor of llio Mississippi Valley ralmmd several years ago. Mr. and Mra. Win. Ilnnley, Mr and Mrs. II. L. Cupples, Mr. nnt Mrs. Ncwberry Johnson nnd Mr nnd Mrs. Dixie Crawford atlcndei n show In lilylhcvllle Sunday evening. Charlie Blilci of Cooler trans acted business In Steele Monday. •Bum Hopper and Claude Holme of Tyler were shopping al Iocs .ores Thursday. Mrs. A. I;. Jordan who hns bcci nploycd nt thc Snm Hnmrn stor or some lime, has resigned. Word comes lo us llial Mrs, A . McCollum Is able to sll up n lie home ot her daughter nt Cool r. Mrs. McColium underwent crlnus operalion in thc Ulylhcvll lospltal recently. Mrs. Alum Orlssmn tiansacte iiishicss In- Cooler Wcdnestlny. Tho Earls Molor Co. lias move roin tlie Iccallon on Main strc vlicrc tiicy have been for n nun cr of years, to the Holly bulldli n highway 01. •L. O. Spencer nnd family ha 1 noved oiil of llicir residence , , readied 4.000.000 cars for the first tltn.? in history. Tins was seven years ago. or tiic average Ilie of a air. Most of the 1923 vintage Is ready for replacement. • In 1930 production lias fli-cllned more rapidly than registrations nnd in ti?,? lasl fc'.v months more cars were made. Stocks of used and new cars arc reduced. A great de- any. important change in their con- f crro d demand exists for aulomo- . sumption and use. of. goods. .This is indicated by thc . fact ;' that virile some lines of industry have curtail-, ed activities greatly, ".business as a whole is nt about 80 per cent of normal. This rate of activity is required lo provide for. the needs of ^lany pt-ople are asking what will lift business out- of the present depression. In 1921 il wns tre building boom growing out ot the war shortage of housing. Moreover, the automobile the population. Depressed condi-] jntiusiw was al hand. lions abroad have cut down exports. Deferred Replacements Must,Come Soon Bui al the bottom of things in 1921 few vlsualired the constructive forces even then at work. Some; Hues of production have Many New Products fallen far below.the level of con- To Aiil Industry sumption. Tl'.e result Is.that goods] Such forces arc at work today. Three Little Hoovers, All in a Row 5. Thc credit situalion, whicl was strained one year aiiu, is once more healthy. While there continues consider nblc disturbing tension in ccrtah foreign countries, the world sllun tlon as n whole is fnr less dnrl linn it iippoarcd in 1321, when re covtry got under way. Gradual Improvement Ir, Seen fnr 1331 America has come through man; previous depressions. During eacl of such periods thc foundation wen laid for recovery which lifte< business to a higher degree of pros pertly nnrt living standards lo bet ter levels. There Is every reason li lielic'.e similar constructive force arc at work now. One of the evidences of the tun nflcr n depression Is when genera sentiment is al Ils lowest ebb. He viva! starts when il is least sus peeled. There arc many Indira tlons that business has been in 111 turning stage during Ihc closlni weeks cf 1030. Tlie prospects for 1M1 nrc l ' in business recovery shortly will be coir? more definitely apparent nn that the course ot trade will be on of gradual advance toward norrni times during the year- . efficiency, thus laying the Icdttdation fcr healthy and certain reccvery. Moreover, pasl depressions reveal' that notwithstanding the swing- of : thc business cycb th: material! well-being nf man has steadily climbed, especially in America. At-1 ter each dcjjrcMion the level of liv-: ing stanriards cf thc masses of pco- ! p!e in tiii= country has advanced to ! a hiel'.or Plane than that prevailing : lefoir. Frcm 1630 to 1020. real wages is to say, the amount of goods This is n sign that the business recession lias reached the bottom cf Ihe ladder. I.ate in the year wheat wns hailed in ils downward p'.unge al aboul 72 cents a cushel through I'r.c government's eflorts. Copper is firmer. Sler-l prices have advanced SI a ton and tiie average of all wholesale prices lias been holding nt a fairly even level in recent months, lorin Shrank 10 1'er Cent After Crash The decline in commodity values At c-lic midnight hour delicious fresliinunls were served, and the r!y got Into cars and rode thru celc to welcome the New Year hi gay fashion. At 1:30 thc parly dls- mled. 'Iliose who altended were Isses Slna Dugeari Uubyc Ashley,' nry Newt Carr, Maude Alice' easley, Virginia Crlder, Elolse ark, Eugenia Jenkins and Alice cD.inlcl, nnd Messrs. Charles ork, Harold , Steele, Olllc Story, alph Capps, Lcyon Earls, and ohn Uolstciul. Orvil Horlon, of Paragould, siKiit lirlslmns: holidays with his par- ils, and otlier relatives here. Last Wednesday evening eight, rcinbers of the Epworth League athcred after tlie Christmas tree rogram nt the Methodist church, nd went to dlflcrcnt homes and nng Chrlsimas carols. Wont CLASSIFIED WO/"'. Steele Society—-Personal FREE With each live gallons of gasoline, or moTe, purchased :it this station we will (five as an introductory offer one couiion tfooil for two quarts MM motor oil, when we drain your aankcase. (Only 1 coupon accepted for each crankcasc draining.) The holidays have been .happy.days for.thc'ithrcc.'grandchlldrcn of. President and Mrs. Hoover. And here you see them, in - an • unusually 'interesting, portrait' study—a-l'car-old Peggy Ann at the' left, the rarely photographed baby Joan in-the cenlcr.'and(3-year-old Herbert Hoover. 3rd. They arc little guests of honor at thc White House in" Washington while their t,uhcr, Herbert Hoover, 2nd, convalesces at fAshville,' N,-C., from a lung infection. Miss Eugenia Jenkins lias returned alter spending tr.e holidays with friends in Paragoiilcl Miss Einuglnc- Hollcnbcck ot Portagcville Is the guest of Dr. ana Mrs. J. W. Uobblns. J. H. and E. S. Workman had ns their guest last week their brother, Roy Workman of Portageville. Austin Ellis lett Wednesday for| Memphis lo transact business forj several days. ! Mr. ar.d Mrs. Robrrt Steelc jr.. and Harold Slccle and Charles York! nltended ll.e show in Caruthers- vllic Sunday afternoon. Charles nnd George Long of Ca| nitnc-isville transaciirl business here Tuesday. Miss Delsic Stewart ot the N'sw shion Shoppe was visiting in BIylhcvlllo Tuesday. Mr. and Mrs. John McClurc were visitors In Cooler Tuesday aftcr- :ioon. Mrs. James Stnller of Memphis Is the guest of Mrs. J. n. Burden and family this week. Mr. and Mrs. John Tucker and Mrs! J. B. Jones of CHO'.CI were the guests of Mr. and Mr.s. Abncr Asm-haft Monday atterno-jn. Mr. and Mrs. Bob U.iwklns of Hayti slopped for a few minutes visit with 'friends l:cre Wednesday while en route lo ulylhcvillr. Mrs. J. II. Workman and son, DON'T FAIL TO GET A COUPON TODAY* . DIXIE SERVICE STATION I'honi: Hi5 Ash at Broadway. Kentucky Kentucky Zeiglei i? • Empire Montavallo Genu Small Egg S5.75 §7.50 ne 12.00 James Henry, spent Clr.istmas with relatives in Portngeville. Mr. nnd Mrs. Carl llallcy .it Hay- II spent Cnrblnias day «!lli Mi. and Mrs. David Spencer. Word has been received here that BROWNE & BILLINGS Phone 76 New Blytheville Feed & Coal Co. Phone 196

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