Evening Star Newspaper, June 25, 1921, Page 11

\ L} UNDAMENTALLY . this country is sound. Temporarily its business is . 1t is a god thing when we are sick to ‘become well again, but it is a bet- ter thing to seek a way to stamp out our malady for all time to come. There was a time when men and women looked upon smallpox as a scourge from God, terrible but un- avoldable. This was before we learn- ed how to combat it. Today smallpox is no longer a plague. There was a time when wholje com- munities were shattered. and—in an economic sense—were ail but anni- hilated by terrible crop failures. The farmers still have their troubles. Cro ilures are still reported. But a mod- ern crop failure is mild, indeed, com- pared with the devastating ruin that. befell farmers in previous decades. Crop fallures are no longer a plague. Business, 1 believe, is ill with a preventable malady. Business depres- siona are a plague that could be d out if we but knew what to_do. Can we " eliminate this disastrous succession of reckless ups and sicke ening downs? I believe so. Can we make prnsnerlly permanent? I balleve 0. fact, 1 know that this present ernd of depression is less serious than it would have been had we not done \certain definite things to fore- llfll‘tharzml_i‘:la b‘We hL‘\lre made a small s J uestion is how to finish the job. & Y Balance Sheet of Business Conditions Before we try to work out a solu- tion, T would like to make a few im- t entries on the balance sheet ©of business conditions, showing how, year after year, with scarcely a single set-back, we have grown stronger and richer, and fundamentally more prosperous; and then contrast with this steady upward climb the uneven path we have actuallv traveled—the rushings violently upward, the stag- gerings far, too far, downward. ly_once during the past seven- teen years has the fundamental growth of the United States been even temporarily retarded. Steadily, year after year, our nation has increased in population, wealth, and business activity, excepting only during the :}se yeur following the serious panic In lplln of temporary ups and downa,'we may expect that the funda- mental strength of the United States will keep on increasing regularly. Thére are numerous reasons to sup- -port this belief. Better Banking System. For the first time in the histary of the rmu‘ u.;wa }:x o a flexible system pYoperly functioninj in a period of depression. E\erfi one kno that our old national bank act was a product of the civil war. 1t was passed wholly as a war meas- ure baeck in 1864-65. It failed to ac- complish many of the things antici- '-M of it. However, it did give a“basts for banking for half a centm Defects of the national bank act-were pointed out repeated- ly. The chief defect of the act w: rigidity = of the éurrency. ‘When money was needed it was scarce and when there was no demand for money it_was -abundant. It was pointed out repeatedly that “the defects in the bunk act would eventuslly lead us into a financial panic. . These deéfects were the topics I‘-ln"ll in our economic and f.aancial -gext It was mnot until the DPanic of 1907, however. that anything of a constructive nature was donz. Shortly after the panic of 1307, a monetary .commission was appointed, which _made an exhaustive study of the financial conditions, not only of the Unlited States, but of the leading European countries. The result of this investigation led, after a series of changes, to the federal reserve act, giving us the federal reserve banks. ‘While~ these federal reserve banks e Federal Reserve Roard have nctioning only a few years, they have been of distinct service. They have given us a flexible cur- rency and have appreciably minimized the evil effects of abnormal periods. Hed it not been for the operation of the federal reserve banks, we should have experienced before this a more drastic panic than has yet occurred. The banking situation in the United States long since has passed the crisis period and now is fundamen- tally sound. Standardisition. The war taught some very val: lessons. Among these are standardi sation and the elimination of seasonal fluctuations in business. Standardi- Real Estate Investments Makmg Prospenty Permanent_ BY ROGER W. BABSON war. The number of- designs were deereased and the product incrsased. Smndlrdlnllbn ‘is lhe limicng :of the field of activity not only of enter- prise, but also of men. It is the.con- niffg of human activity to a special- lzed field. 1ts underlying principle. is the division of labor. By standardiz: tion s meant the reduction of any one line to fixed types and sizes. A stand- ard is simply a carefully thought-out method of performing a.function. The -WASHINGTON, D. C, interpretation may be put on'the law or what new legislation, may be en- acted, of this we ave quite cértain— the same $3,000,000,000 which formerly went to drink will hereafter be used of. stimulating the regular channels of-business. It will be-.used to buy merchandise, start savings accounts and do' those things which tena to make people happy and prosperous. Merchast Marine. stantdard method of doing anything is " Not only have we great factory ca- devised the time the standard is drawn. 'he object of standardiza tion is to get one way of making the product By standardization during the war, plants were able to effect economy in patterns to shorten the time of production, minimize prelimi- nare work and decrease the cost of production. dong with this ingrease in stand- ard-tation has come the elimination of wany seasonal business fluctua- tio#s. The ice man has gone into the coal business and the coal man had gone into.the .ice business. New England manufacturers who formerly sent out their salesmen only twice a year are now sending them out. q terly. Those who sent them out qu. terly are now sending them .out monthly. They are also sending their men intb the district where the de- mand exists rather than where the parlor” car routes run and the ‘best hotels” operate, Standardization and elimination of seasonal fluctuations have done much to decrease the costs of production and to stabilize - busi- nes: simply the best method that can bei National Advertising. In the past few years a new pro- fession has come into existence. This profession is national advertising. The advertising man who fully ap: preciates his position realizes that he is a professional man just the same as the doctor or the lawyer. Those advertising men who ipstruct their clients in proper advertising, rather than take instructions from their clients, can exert and are exerting a great influence on the proper pro- duction and distribution of goods. It was only ten or fifteen years ago that men advertised when they had money, not when they needed bu ness. Today advertising is being used to create demand when demana is needéd. When used in this fashion, national advertising has gredt possi- bilities in the steadying of business conditions and in the elimination of these dangerous rises awd' falls of busiress activity that are now so evi- den Reserve Buying Power. long ago an investigation was hich indicated that of the lib- -ny bond issues approximately. 80 per cent, purchased by the middle class, is still in their hands. Large corpora- tions have in many instances been forced to sell their liberty bonds, but the great mass of people still have the greater portion of their original purchases. ' So long as this continues the middle class people will possess a great reserve buying power. Sooner or later, as demands press themselves, this buying power will exert itself. Savings are also very evident In other channels. A period of depression can- not last long. when there is a large latent buying power, . Crops. ~As we have already seen, crop fail- ures are becoming a thing of the past. A few years ago, when the Washing- ton crop reports were released, the telephone and telegraph wires in our Wellesley _ Hills _office were kept busy by those seeking the first word on the crop outlook. Now no one seems to give the crops any particu- lar concern. We have had our: con- cepts of ‘value- and businesscondi- tions so distorted in the last few years of abnormality that we are.losing sight of a great many of our funda- mental barometérs. We are produc: ing more than ever before and this is greatly fo the nation's benefit. Ex cepting for. the fraction of our crop which is éxvorted, it makes little dif- ference to the country as to the price of wheat—whether it is $1 per bushel or 33 per bushel. The number . of bushels is the important thing. As the bushels increase the nation’s wealth-increases, and thereford we get} stronger fundamentally. Prohibition. Another optimistic factor in our present business, situation is-national prohibition. Béfore the prohibition act was sed $3,000,000,000 were spent annually for drink. Now this 83 000,000,000, that was formerly spent for drink, goes to the ‘buying of mer- chandise, the building of homes, the furnishing of homes, and the startink pacity and great farm production, but we have the greatest merchant marine in our history. Where before the war we were hauling only 7 per, cent of our foreign trade in Ameriéan bot- toms, we now, with double'the foreign trade, are carrying about 50 per cent in ships bearing the Stars and Stripes. As a successful merchant needs de- livery wagons, so a successful nation needs a good merchant marine. Thanks to the war lhe United States has such today. A Creditgr Nation. + Finally, we are today citizens of the richest country in the world. Where formerly we were a country owing the other'nations of the world. we are today a creditor country, With the reat of the world owing us. For this and other reasons, this country, funda- mentally, is all right. Even at the present time fundamental condjtions aze slowly.but constantly getting bet- er. Temperary Condilon: d yet, what about temporary con- aitions Whie. the country hap beer continually growing richer, wé have been having these ups and downs in ness: The depression in 1903 and the panic of 1907; the prosperity of 1910-12; the depression following in. 1313-16;. the hetter times in 1917- 20, reaching a zenith ‘early in 1920, when business was at the highest polnt, considering all sections and all nes. Now catch the point that I am try- ing to make, namely, fundamentally, conditions are absolutely sound, and yet even over any long period of years, we have first a period of pros- perity, then depression, then prosper- ity. then depression; and so on. Stock prices, commodity prices, wages and everything go up and down. Within a few years cotton ranged in price from 43 cents to 10 cents a pound: wool, the average grades, ranged from $1 per pound to 30 cents per pound: silk rnml 316 per pound to $6 per pound: cop per from 40°centd fo J2 centa: wheat from $3 per bushel tc $1. while cor within a few months fell from $2 to 60 cents. Recently T went to Gloucester to visit my father. When I left there my father drove me to the railroad station. As we passed a certain little store, he mentioned the fact that there used to be a 8ign on this store saying: _“One pound of pork and & quart of beans—10 - cents.” 1 sald: “Let's see what we,can buy that for | ticles we will consider how be accomplished. [Next Saturday" more encouraging. relate the unusi tigation of the 8 ness men of America, now,” o _we stopped the nag_and went in. The proprietor sald: “Well, the price of that pound of pork and that quart of beaxs slowly went up during the past twenty years from 10 cents to 55 cents, reaching the high- est point in the spring of 1920. Since then there hag been a steady decline and the price is now bagk to about 30 cents.” -prosperity is to be made perma- nent, the extreme fluctpations above and below the lime of rormal, growth must be elimizated, In succeeding ar- Tment with Amaciated Fditors, CHAR) 5and 7 Room Bungalows Monthly, _Cash. Monthly, $62 -5 sation increased greatly duri appeal. of savings accounts. No matter what Fourteen buyers at Argonne Terrace are: enthusi’ashc regardmg the, supenonty and excellence ‘of their homes.: . To live in'an Argonne Terrace -Home brmgs-mcreasmg satnsfactmn with every day of possession. -This is- what d)fferermates theni - from astock: model: ‘house. - No location in Washmgton enjoys the e’mmence of Argonne Icr;ace. High elevation overlookmg Rock Creek Park — not far out — ‘convenient, refined nflghborhood certamty of increased valuatlon. “The- originality” and ‘charm of-an Argorme Tetrace hoine<ntakes: 2. most- xmpresswe SATURDAY, JUNE 25, GORDON HOTEL, 916 16TH STREET NORTHWEST, Afty lnd a depth of 100 feet to an alley. It contains 175 rooms and 45 baths. The property produces an annual rentnl of $100,000. he Lake. local i dollars was reported today by Gardi- Plock and SAULS BY FELIX LAKE FOR ner & Dent, Inc., real estate brokers. The seller was Col. I. 8. D. Sauls. Tke building is five stories high and occuple! l lol having a frontage of feet on 16th street structure was formerly the Drnverly of Harvard University and during the war was occupied by the Sixteenth Street Property Fie :fl.fl"fi'fi:::'ew"m the sale of the Among Many Large Sales- During Week. Purchase of the Gordon Hotel, 916 16th street northwest, by Felix|duces an annual rental of about P ilifon | $14,000. There are, also, two stores i nvestor, for half a milun | es n | other sale reportéd fa the. twen- Hermitage apartmént house, at 1117 Vermont avenue and 1110-1112 14th sgreet. It is a four-story brick. build- ing containing twenty apartments and L.occupying a lot with a frontage of thirty feet on Vermont avenue and about the same on 14th street, with-a 3| ¢otal depth of about 120 feet. It pro- the building. It was sold for F. E. M. Berkley of Flint, Mich., to L. M. Johnston of Virginia.” Jr. Babson will | of 110 feet. ual story®of an inves- | Weaver to a local business man at a eventy leading busi- | consideration said to have been $65,- Which he made )000. Weaver Brothers, represented the these men have | seller in this transaction. rity 18 one of the most ons ever written.] Revell Com-| P street northwest. Roradet prosne important lei 1921, Fleming H. t pubiished in The Stac by arras soctated Homes in ‘town with ground all around for less ‘than. houses in a row. Exhibit, 4211 12th. Open daily from 9 to 9. ‘Take 11th, F or North Capitol street car marked “Brook- land” to end.of route, or call Main 6935 for appomtment 1 Over 40 Bold by Sample. * 6 and 8 Room Houses MIDDAUGH & SHANNON, INC. Temh Floor,, Woodward Buildin; Since 1898—“Ne Place Like Home; No Home Like Ours.” 15th and H Sts. - The firm also negotiated the sale of ‘this is to [the apartment house at 1305-15 30th street, known as the Colonial. It is a four-story- building occupying.a lot is even [117.5 feet on 30th street by a depth Jt was sold for F. B. Clifton G. Burgin purchased the Nottingham apartment, located at 2124 This is'a three- story brick building, contaning ff- teen apartments, producing an annual 1921 Over 15. Years of Success for :Our Clients ‘Washington Réal Estate Board will be formally opened Monday in the ‘Finance Classified REORGANIZED REALTY BOARD WILL RECEIVE VISITQRS MONDAY Interstate Headquarters of the reorganized’ Intarstate bullding, 1317 F street northwest. Officers of the board, H. L. Rust, president; J. €. Weedon, vice president; Alfred S. Gardiner, treas- urer, and John A. Petty, executive secretacy, will. be in-'the offices dur- | o 2™ 0ar9% hope: Up-to-Date Offices Will Enable Organi- zation to Carry on New Policy in Building. unlicensed and irresponsible broker, who by his inexperience and some times questionable motives is a men- ace to the public. Transactions in- volving real estate require more than mere salesmanship and should only be handled by men experienced In the fundamentals that underlie the purchase and sale of real property, as well as the intricate questions in- volyed in the management of estates. through its influ ing the day to welcome members of |ence and the exlmple of its mem the board and friends who wish to|bers that eventually the practice of inspect the new quarters. floor of - the building has equipped to handle the routine WOTk | o ausured, the board has a splendi of the board. One room is to be used | opportunity to develop into one of real estate will be restricted to only such persons as are properly quali- A suite of two rooms on the second | fied, thereby maintaining the dignity been | of the real estate profession. #With the support thatsis at pres: as the executive office and the other |the —most - public-spirited civic or- room {s reserved for'committee meet- ‘|ings. Special equipment for the work rental of about $7,000. The consider- ation was $60, Gerson Nordlinger sold through the same office two houses in Bradiey Hills, Md., for a total consideration of $25,000. T.M. Johnston disposed of premises 605-609 North View terrace and- 109- 111 Johnston avenue, in North Rose- mont, Alexandria, Va. Each. house is a two-story, detached brick structure, containing” about eight rooms and bath. The total consideration was $45,000. Harry Allyn was the purchaser of a forty-eight-acre tract located at Sil- ver Hill, just outside of the District, Prince Georges county, Md. This property is improved by a ten-room dwelling. It faces on the Washing- ton-Leonardtown &tate road. Mr. Ai- Iyn has made extensive improvements and will occupy it. “The consideration was $20,000. ty-five-acre tract located near Silver { Spring, Montgomery county, Md. It is improved by a ten-room dwelling with modern _conveniences and outbuild- ings. The purchaser, Capt. H. E. P. Baden, will occupy the premises.. The consideration is reported as - being $23,000. | 5 S e O The business property at 804 7th street northwest, near H street, was purchased this week from Abraham Sigmund and Morris Gans by Julius Tarshes, who will hold it for invest- ment purposes. Shannon & Luchs ar- ranged the sale. City, . Suburban, Country Estates, Water Fronts. R No matter what you-have i in mind, or desrre in the .. way of a particular. dwelling place,,.we have a chorce hst of the best along that lme. : * Realtors WE SELL, EXCHANGE AND RENT .. PROPERHES OF EVERY DESCRIPT[ON X ',fi B you areaproperty owner e Realtors 717 Fourteenth Street‘N W. of the appralsal committee, including plat books, ‘maps, tax regords, etc., have been Inl(llled under. the supe vision of Willlam L. Beale, chalrman of that committee. Secretary Petty !lull. In announcing establishment ol u:e board in new. quarters Petty pointed out that Seretotore. the local board has been an assoclation of real estate brokers, with its prineipal activities in the main social. “Under. the reorganization member- ship is now* extended to.include prop- erty owners and certain classes of business and professions closely al- lied with real estate. This new form of associate membership permits par- ticipation in the meetings and varl ous activities of the board, and this feature gives to the board a distinct element of civic character,” Mr. Petty stated. Included in the associdte member- s)\l _list are builders, contractors, ma- al dealers, architects, engineers, fltle examiners, financial interests and others. “The aims and Purposés "of the organization are unseltish and broad- spirited. and the board is receiving the support of local men of the high- est type,” Mr. Petty continued. in taking the step Which resulted 1 the present reprganization the board has merely followed the lead of real estate boards in most of the principal ! cities in establishing offices, with a paid executive secretary. In such cities as _ Philadelphia, Baltimore, Chicago, Oakland, Buffalo, Detroit and many others. the real estate board, by its broad-spirited develop- ment,” has become a strong power for much good. They guard and pro- tect the property owners and at the same time develop those things that mean the greatest good for a cit: < WIill Develop Policy. *The policy of the local board will! be developed on broad lines and it will support “all worthy movemehts affecting real estate. By adopting the code of ethics approved by the ! National Association of Real Estate “It will. co-operate with the mu- nicipal authorities: in eliminating the GARDINER & DENT Incorporated Over 15 Years of fi#lfiectlou “ for Onrlelm / \ Farms ganizations in the city, and will be |clolely identified with the future de- velopment _of the National Capital’ Secretary Petty concluded. EIGHT RESIDENCES SOLD THROUGH BROWN OFFICE I'l"o Unimproved Plots of Ground Also Among Transactions of Week. Eight residences and two unim- proved plots of ground were sold this week through the office of Walter A. Brown. O asers and the properties bought follow: John F. Baines, 1415 ‘Webster street northwest; Sorrell & Luria, 1739 F street northwest; Philip Rogers, 3016 Park place; E. 0. lAfMll, 30th street, Cleveland Park: Wil liam F. Capps, 1200 5th street north- Last. and Walter Taylor, 1625 T street northwest. Thomas A. O'Donnell acquired = tract of land on Pennsylvania avenue ! southeast. Thomas A. O'Donnell sacquired a tract of land on Pennsylvania avenue [m!be-sl. will improve ground for business purposes. ‘Mre. S. Schneider purchased a lot on Newark street, Clevelond Purk, upon which she will erect a home._ e WITH KAY-ALGER CO. Mrs. N. B. Tournier to Be Manager 6f Realty Sales. Mrs. Nina B. Tournier, real estate operator here, has joined the Ka; - Alger Co! in the Bond bullding. * 45 sales manager, it is announced. 1 . Tournier formerly was owner of the Knickerbocker apartments and iof Fontanet Courls. She recently In addifion to her some tim: “and s ’ .