before we had borrowed $70,000,000. And since our whole property was unencumbered and we had no commercial debts, the matter of lending a large sum to us would not ordinarily have been a matter of moment. In fact, it would have been good banking business.
However, I began to see that our need for money was being industriously circulated as an evidence of impending failure. Then I began to suspect that, although the rumours came in news dispatches from all over the country, they might perhaps be traced to a single source. This belief was further strengthened when we were informed that a very fat financial editor was at Battle Creek sending out bulletins concerning the acuteness of our financial condition. Therefore, I took care not to deny a single rumour. We had made our financial plans and they did not include borrowing money.
I cannot too greatly emphasize that the very worst time to borrow money is when the banking people think that you need money. In the last chapter I outlined our financial principles. We simply applied those principles. We planned a thorough house-cleaning.
Go back a bit and see what the conditions were. Along in the early part of 1920 came the first indications that the feverish speculative business engendered by the war was not going to continue. A few concerns that had sprung out of the war and had no real reason for existence failed. People slowed down in their buying. Our own sales kept right along, but we knew that sooner or later they would drop off. I thought seriously of cutting prices, but the costs of manufacturing everywhere were out of control. Labour gave less and less in return for high wages. The suppliers of raw material refused even to think of coming back to earth. The very plain warnings of the storm went quite unheeded.
In June our own sales began to be affected. They grew less and less each month from June on until September. We had to do something to bring