Every evening, Wilmington daily commercial., 1920-05-22
CAN SEE NO ALARM
IN BUSINESS SLUMP
Head of Bank Of Commerce IN. "
Says Unscttlcment May
be Expected.

New York, May 22.--James \. Alex
snder, President Of the National Bank Of
Commerce, yesterday issued warning
that corrective measures 10 restore normal
conditions will fail unless the transpJrta-
ton system Of the United States can be
brought back to efficient operation, but
TINT IL the general principles Of safe and
sane revision Of prices and reallgnment of
our business life are carried out, we should
weather the readjustment period without
disaster
at is q time for steadiness, but not
for alarm" said Mr.. Alexander" Present
unsettlernent was 20 be expected | feel
confident that we are definitely running
into the inevitable and desirable period
of geadjustment away from the unnat-
ural business and financial conditions
produced by the war and its aftermath.
This readjrstment will be drastic in
some respects. but it will bring us 10 a
more safe, stable and satisfactory busi-
ness basis for all concerned. To be fun
damental the readiustment must involve
q revision Of our price structure care
full realipnment Of the various elements
in our whole business life IN co-ordina-
ton with each other.
There must at tho same time be an
increase of production IN the primary
markets, go that oncoming basic supplies
will be adequate TO demands. From the
other point Of view it would also be
futile merely 10 stimulate production
and force prices down. This action must
be met by a measure of Temperance in
consumption on the part Of the public
if lower price levels are to be established.
"No practicable volume Of production
and no feasible scale OF prices would
correct the situation if excessive extray-
agance in buying and in consumption
such as we have seen ever since the
armistice were to continue. Such ex-
travagance could not fail to produce
scarcities and scarcitics could not fail
to produce high prices High prices in
turn are productive of imitation. But
there are unmistakable signs of increas-
ing moderation on the part Of the people.
S'Finally all Of these corrective meas
ures would fail unless our transportation
system can be brought back 10 an eff
cient condition. II is useless 10 produce
If We cant transport This requires
the stabilizatlon OF the general labor
situation.
'If these general principles are kept
in mind and followed we can weather
without disaster the present period Of
readiustment. Fortunately, in the Fed
eral Reserve system we have an organ
ization of our monetary and banking
system which should make pasics inn
possible We do not have to contend
now with an inelastic currency system
and laca Of ne ans through the banks
of the country can cooperate in main
tanning the integrity of the situation as
q whole.
Wisely directed our means and ma
chinefy are well devised for the working
out of the needed correction Of our
present business situation. As ! see i
now, only undue public appreh ension
and only a failure Of our business and
financial leaders to keep their heads and
follow the obviously wise course of ac-
tion could produce serious consequences
under present conditions This course
must be one Of conservatism directed
BY high sense Of public responsibility
even in private business. Fundamentally.