The Washington herald., 1921-05-28
COUNTRY FACING
PROSPERITY WAVE,
DECLARES MIR. GARY
Steel Magnate Paints Op-
timistic Outlook in
N. Y. Address.
.LAUDS GOVERNMENT
Saws It Would Be Unjust to
Reduce Wages Before
High Prices Drop.

NEW YORK, May zf.- Our ro
sources are SO great, our facilities
for carrying on affairs so satisfac-
tory. we know that before US is the
greatest prosperity this country has
ever witnessed" Judge Ebert Gary
declared today in opening the an
nual. session Of the American Iron
and Steel institute here.
"The devastating and destructive
war left the entire world In a dilapi-
dated and demoralized condition"
Gary said. Minds had become dis
tracted, visions obscured. morals
natural progress inter-
rupted, and the whole economic
structure disjointed.
Since the armistice was signed
nations have been drifting and
struggling. endeavoring to formu-
late and adopt plans for reason
able readjustment and rehabilita-
tion. Up to the present time there
still exists doubt. discord. and dis
order.
Production Below Consumption.
This, 1 think, will suggest to our
minds many facts and circumstances
which, combined. have brought the
business situation in the United
States to It's present state. In a
country of 107.0oe.o0 people, re-
quiring for their daily necessities
various products aggregating In
value billions upon billions OF dol
lars per year, production is pro-
ceeding much below that which Is
actually needed for consumption.
I'm the richest of all nations IN
property and money. with greatest
and most rapidly increasing re-
enough to supply themselves fully
with the ordinary comforts OF life,
although they have the disposition
and the means to do so.
Tt is because the great purchas-
ing public has formed the opinion
that there have not been consum-
mated complete and proper re-
adjustment Of prices. On account
Of failure to discriminate between
different lines or departments of
business, the whole economic sys-
tenn has suffered
Praise for AdminIstraticn.
"one of the most hopeful signs
of the times Is the apparent dis
position of the present administra-
tion at Washington to aid rather
than obstruct the natural and legiti-
mate progress of business.
What can be done by the steel
industry? Experience has more
than once demonstrated that the
mere reduction of selling prices does
not bring large and satisfactory
business. would-be customers are
delaying purchases except for i'm
mediate and imperative uses until
they are satisfied that a sound and
stable basis of prices has been
established.
There have been reductions and
adjustments. Others may be neces-
sary before complete restoration Of
normal conditions. I am not now
prepared to express an opinion on
this subject. 1t depends upon cir
cumstances.
Wages q serious Problem,
Tt Is well known that at pres
ent. unless. and until, wage rates
are further reduced, costs of many
steel producers will not permit
lower selling prices. This presents
a serious problem. Personally, I
think. under such conditions, wage
rates should not be reduced untn
or about the time selling prices are
lowered. I also believe II would be
unjust to further reduce wage rates
before the costs of living are
lowered.
If we may rely on statements
by economical and statistical ex-
perts, this country is now headed in
the right direction. and IL this be
true, as 1 believe, then our progress
toward recovery. though slow at
go by"
The institute heard a number Of
papers by business and steel expert.
on technical subjects.