The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-10-07
TRADE IS BETTER,
BANKERS ARE TOLD
Conditions of Business Analysed
by FinanCierS' Chief.
SAYS PESSIMISM UNFOUNDED
President of American Bankers AS
citation Tells Convention That
There's Nothing to Indicate
World Is Riding to Ruin.

Los Angeles, CAL, Oct. 5.-The dis
posal of billions of dollars by some
$4,000 banks was cheerfully discussed
at the opening of the forty-seventh
annual convention here of the Amer
lean Bankers association.
Things are looking better, the times
are not SO badly out of joint as
year ago, Irresistible forces are work
ing in the turning over of these bill
lions of dollars toward more prosper
Gus times and the pessimist with
theories of depression is out of place,
it was said by leaders in the nations
financial world.
The program of the formal opening
session was featured by a 42,00O-word
report by the president of the asSoci-
alton, John S. Drum of San Francisco.
It was a review of the situation to-
day, a countrywide economic survey
expressing the opinion of more than
a thousand bankers. A 12,5O0-word
analysis of it was followed by sum-
mary of the condition in every state.
World Not Riding to Ruin.
President Drum crystaIlized it in
these 26 words:
There is nothing in either the do
nestle or the foreign situation to give
rise to the pessimistic conclusion that
the world is riding straight to ruin"
Rational examination Of our con-
ditiOn today" Mr. Drum said, must
70 no 6nI1hfnP that
problems are but the natural manifes-
tations of a worldwide maladjustment
that great natural forces are working
to remedy"
More than 1000 reports we're the
basis, he said of his address, "Our
Situation TOday-A Countrywide Eco
nOmic Survey" In part it follows:
'The output of finished goods
throughout the country is consider
ably smaller than it was year ago,
and measurably smaller than it was
six months ago. There is surplus
of manufactured commodities in the
hands of the producers. A progress
sive decline in the costs of manufac-
turing has taken place during the
year In industry as whole, the
costs of materials. labor and cOnstruc-
ton have declined in the order named.
Increased efficiency of labor has
been the natural result of unelnplOv-
ment on a large scale, but the eff
cheney of men in the building trades
in the country as a whole has not in
creased, although there are exceptions
to this.
Three Retarding Influences.
"The reports l have received have
also shown that the three great do
nestle influences that more than all
others are retarding the reimbursement
of prices and costs are these:
81. Delayed adjustment of cost of
labor, which prevents adequate reduc-
ton of prices of innumerable commod-
titles and services in the cost of which
the cost of labor is the most impor-
tant factor and also serves to pre-
vent full employment of labor This
is due both to slow adjustment of
compensation of labor and the cOntin-
uatiOn of shop rules that impair eff
cheney.
"2. Sustained high costs of trans
pOrtation, which prevent natural and
normal movement of commodities of
all kinds to markets.
"3. Continuation of an unsound sys-
TEN of taxation that diverts working
capital from its proper channels and
thereby prevents accumulation of
working capital that is necessary for
increased production. for installation
of improved methods Of production
and for full employment of labor
at is true that many problems, both
domestic and foreign, are standing in
the way of restoration of stable con-
ditions and normal domestic and world
prosperity. But the forces that are
working to solve these problems are
Irresistible -