Looking Ahead

Not alone Wall Street, but the entire country is now engaged in conjecture as to the exact interpretation to be placed upon this pronounced advance in commodity prices. While Mr. Babbitt is immensely cheered at the immediate business prospect in 1923, yet the disastrous memories of 1920 and 1921 are still fresh in his mind; he is wondering whether business is entering into such another swift and unhealthy " boom" as he experienced in 1919 and 1920. For the most part, anxiety on this score seems groundless. The 1919 boom arose from the world shortage of goods after the war, and our huge consequent exports which were recklessly financed with long-term banking credits. These latter, together with the additional strain placed upon the banks by the great rise in commodity prices, came upon a money market already badly inflated by war conditions. When our credit facilities were exhausted liquidation naturally followed, with the result which is still a nightmare to Mr. Babbitt.