Oxford eagle. (Oxford, Lafayette Co., Miss.) 1876-current, 1921-10-06
1000 BANKERS
FURNISH ROSY
BUSINESS DATA


alton to Give Pessimistic Con-
clusion Says Drum.
Los Angeles, Oct. 4.-There is moth
ing in either the domestic or foreign
situation to give rise to the pessimistlc
conclusion that the world is riding
straight to ruin, John s. Drum, bank
Ter. OF San Francisco county, told the
American Bankers Association, of
which he is president, at the opening
session here today of its 47th annual
convention.
Rational examination of our con-
dition today he said, must prove
to the greatest doubter that our
problems are but the natural man.
ifestations that great natural forces
are working to remedy"
Reports from more than a thou
sand bankers provided the basis for
his subject, he said.
"The output of finished goods
Throughout the country is consid-
eraDly smaller than year ago, and
meaSurably smaller than SIX
months ago." Mr.. Drum said.
There is a surplus OF manutac-
tured commodities in the hands OF
the producers. A progressive de.
Cline in the cost OF manufacture
mas taken place during the year.
Ia industry, rs wnoIe, the coscs OF
materials, labor and construction
nave declined, in the order named.
increase efficiency OF labor has
been the natural result of unem-
ployment on large scale, but the
eI1iciency o fmen in tue building
trades as whole has not increased.
Prices on Decline.
Taxation in industrial sections
has either increased or remained
stationary during the year; in no
case is a decrease reported. Whole
sale prices of manufactured goods
nave decreased steadily through
the year. Retail prices, on the
whole, also have declined steadily,
although not in the same proper
tion as wholesale prices.
In the great cotton states of the
South, in the agricultural states of
the Middle West and the West, in
the Western mining and cattle
raising states, in the lumber pro-
ducing regions of the Northwest
and the Southeast, there has been
q great reduction in buying power.
consequently slackened demand for
natral produts and reduction in their
value without a commensurate de-
crease in the prices of finished goods
"In the industrial regions there
has been reduction Of production.
consequent upon reduced foreign pur
chasing and reduced buying by pro-
dcers of natural products at home,
This reduction in output of manufac
tured goods in industrial centers has
thrown millions of men out of EN-.
ployment and consequently has oper
ated to reduce further the nationa
buying power.
IF world influences in the process
If readjustment could be divorced
from domestic influences. this country
would not now be considering prob
lens of readjustment it would have
solved them and would be walking il
the old path. But this could not ane
c&n no: be; world influences now ane
|henceforth must have a powerful
bearing even on the problems that In
former years were considered purely
domestic.
Causes of Depression.
"The reports ! have received also
have shown that the three great do.
mestic influences that more than all
others are retarding the readjustment
Of prices and costs are these:
First: Delayed adjustment Of cost
of labor, which prevents adequate re-
duction of prices of innumerable com.
modities and services in the cost OF
which the cost Of labor is the most
important factor, and also serves to
prevent full employment of labor.
This is due both to slow adjustment
Of compensation of labor and to the
continuation of shop rules that impair
its efficiency.
"Second: Sustained high costs
of transportation. which prevent
natural and normal movement OF
commodities Of all kinds to markets.
Third: Continuation of an un-
sound system Of taxation that di-
verts working capital from its proper
channels and thereby prevents accu-
mutation of working capital that Is
necessary for increased production,
for installation of improved methods
Of production and for full employment
of labor.
Common opinion. expressed IN
hundreds Of reports that make up
this survey Is that when these
three deterrent influences have
been eliminated the chief obstacles
to . restoration of proper and
equitable price equilibrium viii have
been removed, trading between one
group Of producers and others viii
proceed naturally, and labor and capi-
tai viii be more fully employed In
productive enterprise"