The Washington herald., 1921-04-29
Secretary Makes Address
at Chamber of Com .
merce Convention.
SAYS ADJUSTMENTS
MUST BE EQUITABLE
Rail Rates, Taxes and Ia.
riff Need Revisions,
He Declares

|-Secretary of Commerce Herbert
Hoover told the United States Cham
ber of Commerce, in annual con-
vention here today, that this coun-
try had weathered the danger point
of great crisis and that the diffi-
eulties here were infinitely less than
those facing Europe.
In surveying the impediments to
readjustment, Mr.. Hoover en-
phasized badly adjusted railway
rates. excessive and badly adjusted
taxes, insufficient tariff, high wages,
high profits, high interest. .restric-
tion on effort By labor and the in
terlocking of domestic recuperation
with the recovery of Europe. He
said there must be something ap-
preaching a parity of levels in
prices, profits and wages.
May Keep Standards.
In discussing the wage question
he said that it was entirely possible
for the United States to maintain
its high standard of living by max
ing equitable adjustments all along
the line. by using better Judgment,
greater efficiency and by harder
work.
Mr.. Hoover's address follows:
In entering on any discussion of
our commercial situation. it would
be foolish not to acknowledge
Frankly that we are in the midst
tof great economic difficulties. But
pt is infinitely more foolish for any
one to think we will not grow out
of this situation.
Is World Problem.
We have gone through a postwar
speculative boom. stimulated by a.
world vacuum in commodities. We
are suffering, both from the after
math of the boom and from the war
destruction with it's consequent re-
Faction upon us of the greatly low
bred standards of living in Europe.
some ways the situation is even
more difficult than that following
the civil war. because today our
Economic machinery Is more intri-
cate and less easy to adjust. and we
are not dealing with a domestic
situation as then, but with a world
situation.
At the moment. there is a great
shrinkage of production in general
Industry, there is a slowing of COM
modify movement that imperils our
railways, there is Generalization in
our agricultural industry. there is a
stoppage in our building. despite
the national necessity for homes,
and there is great unemployment.
We have much upon which to
congratulate ourselves Our diff
culties are infinitely less than those
Of Europe: we have weathered the
danger point of a great crisis; our
financial system has proven it's
strength and for the first time we
have passed safely through a COM
modify crisis without monetary
panic. Our people have abundant
food and abundant clothing. We
are at least warmly housed. even
though crowded. We possess in the
high intelligence, high courage and
high ideals for our people ample
Reserves of economic. social, and
political strength. We possess a
kreat sense of neighborliness that
has had fine manifestation in these
Idifficult months in help given each
other in weathering the storm. We
have had a remarkably small ratio
of failures. 1 am convinced we have
fundamentally turned the corner.
Inequalities Cited.
1t is almost bsnal to say that we
are passing through the postwar re-
adjustment Part of the bitterness
of the situation arises from the inc
kaualities in the progress of these
Ireadiustments in different walks If
life and in different branches Gf in
Idustry. Nothing is more indicative
~ a1i0nnnnnt n h.a
march of readjustment than the rep
|etition of recent commodity and Ia
|bor indexes as compared to a 100
trewar base:
Barn prices (crops) ).............115
barn prices (animals) ..-.......123
WHOLESALE food .1S0
Retal food ...............-. l56
Railway receipts per ton mile. .166
lighting 2eI
building materials 212
House furnishings .275
Sew York Industrial Commission
wage index. 2I2
APARTMENT labor. hourly union
wage index ......-..-....1 199
Much of this rosdjustment can be
accomplished only with time and
batience. Economies of hard times
anu Gu
heavor Shrinkags in values Yields
nore free capital. These savings in
urn fertilize the soil for upward
progress.
There are many impediments to
he smooth movement of readiust-
nent that every one can enumerate,
Ind every one will set a different
Ralue and Importance upon each Of
hem. From all quarters of our
lomestic field we have daily emu
herated as impediments to recovery
badly adjusted railway rates, ex-
sssive and badly adjusted taxes, in
efficient profits. high interest, re-
friction on effort by labor, and a
pzen others, while our domestic re-
operation is sadly interlocked with
he recovery of Europe.
.-, Parity Of Levels.
There is slow and only partial
ealization by some bankers, direc-
RS of public utilities, manufac-
kers and distributors, both en-
byers and employees included. Of
fact that we must approach a
Fifty of levels in profits. prices
"A Wa0ea In differauf induatrias