" Treacherous Cycles "

Too much importance, of course, should not be attached to speeches at conventions--even at bankers' conventions. Yet the necessity, according to President Puelicher of the American Bankers' Association, for abolishing the " treacherous business cycle" amounts to what advertising men call an " interrupting idea." There were no real business cycles until we had banks and a banking-credit problem and, arguing from precedent, it may not be until we abolish all banking and return to the Middle Ages that the business cycle can be also eliminated. This is just what the Socialists propose, and after President Puelicher's righteous abuse of them, it is curious to find him indulging in their mental vagaries.

While the business cycle is likely to remain with us for some decades yet, nevertheless everyone wishes to see progress made in preventing its alternate swings of inflation and deflation from proceeding to extremes. This can be assisted in many ways, notably by government building in periods of deflation, and conversely, by inactivity in government projects in times of inflation. However, the present cure-all of " stabilizing " this or that industry by price-fixing is in the long run no genuine remedy for the ills of the business cycle. In practically every case, price-fixing is proposed most earnestly by those who stand to profit most out of it.