The condition of the railroads grew worse; public utilities, including traction lines, deteriorated. The housing shortage increased and grew acute. Building costs were so high, and capital was so scarce, that it was virtually impossible to get mortgage money in anything like adequate volume, even had building promoters been willing to trust the prevailing high prices. Agricultural capital in terms of fences, barns and the like appears to have deteriorated during 1919, and soil fertility was inadequately maintained. We were living on capital, using up past accumulations instead of increasing our long-time wealth and resources. This maladjustment of our industries, the undue producing of goods for immediate use instead of producing goods for further production was one of the most ominous signs that could be pointed to in 1919 and early 1920. It was world-wide.”
Obviously the world can not become poorer and be happy or prosperous by virtue of it. There is not in this any foundation for dreams of prosperity or vociferations for a higher scale of living. Nor are the facts that we are short of houses and railways, and that we ought to electrify ourselves far more for the sake of economy, any ground for belief that we are going to have activity in business in supplying the needs. Anybody may need things urgently and yet not be able to have them if he can not pay for them. Nor are we to draw any too great comfort from the thought that the United States has not become so impoverished as Europe. If there be any economic fact that has been made clear by the war it is the closeness with which our affairs are intertwined with those of Europe. Europe’s poverty must necessarily react upon us.
