SPEND FOR PROSPERITY.

Cromwell Argus, Volume LXI, Issue 3168, 22 June 1931, Page 8

SPEND FOR PROSPERITY.

Under the above heading the "Scientific American" reviews the trade situation in the United States and draws the following conclusions:

"Long-established and vital Industries that have withstood for months the laments of the pessimists have at last succumbed and inaugurated programmes for retrenchment that are sure to have a devastating effect, not only because they will withdraw many millions from circulation but also because they will further lower the morale of all those who hear of them. And the distressing part of It all is that our greatest customers, the American working man and the small-sal-aried office man, are always the first to feel each new blow. They are discharged in hordes without the slightest prospect of obtaining other employment. Their purchasing power is lowered, business suffers further, and old man 'vicious circle* is at work again! And even the man with a job becomes frightened at the possibility of losing his source of Income and hoards his money 'against a rainy day' - more money put of circulation!!

"In a case such as this it is easier to diagnose than to prescribe. One thing is certain, however, and that is that the American people, collectively and individually, must start a veritable orgy of spending. They must stop hoarding for a while, stop being frightended, stop crying 'hard times' and put money into circulation, thus creating a great demand for all sorts of things the manufacture of which will make the wheels hum again and bring a return to prosperity. Time enough, after that is accomplished, to save!"