CONDITIONS IN UNITED STATES

Dominion, Volume 14, Issue 25, 25 October 1920, Page 4

CONDITIONS IN UNITED STATES

o MONEY PLENTIFUL A CRITICAL PERIOD AHEAD Mr, E. Short, the well-known Heroford and Rom,uey breeder, of "Paroraugi," who his just returned from a trip. to America, was entertained. at.' IVUding this week, and in. responding, to his welcome home, made- 60ino interesting remarks on conditions, in the United Suites. He said that ho was particularly struck by tho prodigality of the people. Millions of money had been poured into America during tho war, and there was practically, nothing to show for it. In mentioning the shipbuilding project which sprung . up at Seattle in connection with the' war, he said that when he visited that city there were no tower, than forty-two wooden ships lying in. the harbour without their engines, and therefore useless. The Uoverment had tried to sell these, as well as soma captured German boats, but had been unable- to realise on. them. -

The American farming class had com*, best out of the war. Most of them had paid oil the mortgages on their farms, and had added more laud to The working classes had ken in receipt, of high wages, but most of the money had been spent reeiuessly ou high-class clothing and riotous liviug. So anxious were they to spend money that drapere and outtitters were at their wits' end to get goods sufficiently expensive for them. Mechanics went about their occupations dressed in expansive silk shirts, audthrew them away.when soiled,' So great was the flush of prosperity during the earlier period of tho war that bankers were hard put to it to find investments for the savings which passed into their hands. In some cases these institutions had allowed big motor firms credit to an extent such as would never have been thought of in ordinary times, and the result was that working men were able to 'purchase, motor-cars on time payments. To buy care, many workmen had mortgaged their homes-. However, a few months ago the banks had suddenly called in all overdrafts, and*-busi-ness men found themselves with elaborate garages on their hands which had not been paid for. Tho result of this was that hands were being discharged from tho big motor works at the rats of 2000 per day. There could be only one end to it all, and he predicted that the next couple of months would be the most critical in American history. ■A visit to Ford's works showed that they were turning out 3400 care per day, and he considered that Ford's action in recently reducing cars to .pre-war prices was ,of national benefit. Other, makers followed suit by dropping their prices 25 per cent., and drapers' and grocers' prices had come down in sympathy.

In referring to the oil question, Mr. Short said that ho considered the present high price of petroleum products was caused by the large number of useless wells which had been 6unk in 'America, the majority of which would nover give up any oil. Fifty-five wells had been sunk in Los Angeles alone, and only five of these showed any likelihood of yielding oil, ' The expense of sinking/these barren' bores was added by the oil companies to the prices of petroleum products. While m'~Americ& he had come in contact with the inventor of a wonderful instrument, which detected oil just as a, water diviner found water. The instrument was infallible in the hands of the right person. He intended to bring this man to New Zealad to test the oil resources of thin country..' If no outside ' backing could be found, he would pay all the expenses himself. For a quarter of the money spent by the Government in, experimenting in Gisborne, Hawke's Bay, and Taranaki, the actual oil resources of the Dominion could be tapped efficiently.