The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1920-05-20

prices down through harmful meas
ures for the control of credit" de-
clared Francis II. Sisson. vice presi
dent of the Guaranty Trust Company
of New York, in an address delivered
yesterday "Wednesday. May 19,) at
the Silver Jubilee Convention Of the
National Association Of Manufactur-
ers, held at Waldorf Astoria, New
York City.
Mr.. Sisson also said in part as fol-
lows:
zone of the terms Of obloquy which
cur foreign detractors for years have
loved to heap upon the people Of the
United States has been to describe
rs as nation of mere business
men. lacking ir what they esteemed
10 be the manners and tastes Of civil
izabon, Tut strong in business ability
and mcney-making capacity. If we
accept this comment as individuals,
how humorous it is to note how
far we fail to Justify it as a nation.
for we are today suffering individ-
ually for our failure TO exercise the
most ordinary business intelligence
collectively. The injection of govern
ment into business, and the almost
total absence of business in govern
ment. have conspired to produce n
situation fraught with grave dangers
TO our prosperity and progress. In
an hour Of worldwide unrest, which
some philosopher has well character
lied as a revolt of the inefficient in
which everybody is trying to buy
something for nothing and TO sell
nothing for something, we find our
country without leadership or policy,
muddling in all things without even
the logged British assurance Of mud
dim through
III we could only justify some por-
ton Of our reputation as a business
people by the introduction at this
moment Of business methods into our
various forms of government, nation
al. state, and municipal, a vast eco
ncmic burden might be lifted from
our backs, and this measure Of handi'
cap removed in the great race for
national supremacy in which we are
now entered. Without regard to
party affiliation or political precept,
the crying need Of the hour Is a
business government fer business
people, and such fundamental busi-
ness services as efficient and adequate
transportation, a national budget
system. sound taxation. a foreign
trade policy. practical shipping laws,
protection for American investments
abroad. wise financial leadership, are
only few of the essential planks
in any business platform.
Contraction OF Credit
Facing these many pressing prob
lens all clamoring for consideration
and solution, perhaps we can safely
describe the contraction Of our credit
structure, or deflation, as it is COM
monty understood, as the paramount
issue of the day. But. with due re
gard to the part that increased guam
titles of currency have played in in
creasing the cost of living through
creating increased purchasing power,
it seems TO me far more essential TO
initiate our deflated supply Of goods,
than to defate inflated currencies
The cruX of the whole problem may
be held to be 10 gradually decrease
the supply Of money and credit and
at the same time increase the supply
Of goods, through properly balanced
production. To the solution of this
problem bankers and manufacturers
must be mutually dedicated.
Factors That May Influence Prices
There are signs Of a Fundamental,
change in the business outlook today
Merchants are more hesitant. in re
sponse TO a marked reduction in th'
intensity of the demand for variou:
classes Of goods.
There Is a noticeable slackeninl
of the current requirements in vari
Gus lines. This influence IS beinl
felt in the tendency to reduce thu
prices of goods already produced anc
awaiting consumption. How far thi
will go in reducing the physical vol
ume Of goods TO be produced, depends
upon the degree to which the curtail
ment of demand is merely a reaction
against high prices. In other words
it is contingent upon the extent L
which the curtailment is due to psy
Geological, rather than economi
causes. AT somewhat reduced prices
the same or possibly larger quaint
ties Of goods might find read
market. But to the extent that tn
output Of products declines in r'
sponse to slackening demand, the elC
ment Of scarcity will tend to maintai
or raise prices.
"While a large amount Of the d
ferred demand for goods, which tn
war occasioned has been Statistic
since the armistice, there is still
great need in many lines. The d.
ferred maintenance Of railways, raj
way equipment and manufacturir
machinery is still prominent anon
the factors that should make a su
stantial increa;s In production
1920 over that il 1919. Thus far al'
the foreign demand for America
goods is being maintained in remar
able degree. The exports in Marc
for example, aggregating SS2O,oOOO Oh
We're. with the exception Of the G
ports for June, 1919, the highest
value ever reported for a sing
month. Gradually. however, Europe;
customers are increasingly shiftii
their demand from maanufactur
articles to raw materials With fu
ther progress in the resumption
normal industrial activity in the wa
crippled countries, recession
their demand for American manufd
turers is to Oe expected. In tim
moreover, our imports of mercha
disc may exceed our exports, for '
are creditors TO the extent Of sever
billions and must expect to be pa
largely with goods.
Our Vastly Increased Industrial
Capacity
"At the same time, we have
national industrial capacity much
excess of that existing before the We