Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-05-04

lied States or reduced manufac-
turing ability of European coun-
tries has been the more potent
factor in decreasing the prices OF
lraw materials. The weight OF
lopinion is that as readjustment at
lhome and abroad progresses there
will be a reaction and products
of our farms and forests and
mines will move. Much of the
product is lying idle, although
prices in some instances are as
low or lower than those before
| the war.
Touching on the railroad situa-
ton. Mr.. Drum declared rate in
creases at a time when other ser
vices and commodities were fall
ing had a disastrous influence on
the nations busines.
Questions in the survey regard
| ing taxation showed there is dis
content with systems of taxation,
which Mr.. Drum said never were
Just in principle nor scientific in
method OF collection. There is
virtually unanimous opposition to
the excess profits tax. Majority
sentiment favors a sales tax to re-
place the excess profits tax. OPP
position to a sales tax was found
among retailers.
Answers to the questionnaires,
Mr.. Drum said, showed there is
reasoned opposition to cancella-
ton of the Allied debts to the
United States, based chiefly on
the argument that cancellation
would greatly increase taxation
in this country. 1t was further
felt that foreign governments do
not desire cancellation, theory
being that it would weaken the
efforts of European countries to
restore sound financial practices.
The minority favoring cancella-
ton argued it would operate to
stimulate foreign trade by reliev-
ing the European credit situation
and by stabilizing exchange.
Other answers indicate that
liquidation has not yet proceeded
to a point that will make possible
reduction Of interest rates at least
before the last. months of this
year. The basis for this belief is
found in the low liquidation of
commodities, with the resultant
freezing of domestic and foreign
credits and in continued govern
ment borrowings. s
Despite buyers strike. many
retailers were unwilling to take
their losses and sell for lower
prices, Mr.. Drum said, in discuss
ing domestis markets. This con-
dition existed for a time, he de-
clared, but,has changed and many
retailers are marking down prices
TO basis Of present costs.
Cancellations of orders follow
ed reduced sales and. as a result.
There are now great quantities of
Jail kinds of manufactured goods
for which there is no demand, ly-
ing in the hands of manufactur-
ers. Cancellations were most Sc
rious last fall, but the situation
has been righted to a considerable
lextent.
Opinions indicate that the de
cline in domestic markets to d
great extent has been caused by
land is reflection of an even more
serious fall in foreign demand Tor
American goods.
Europe needs Our goods, but
has not the money, nor can she
arrange the credits that would
ienable her to purchase them" Mr.
Drum said. THE United States
pre-eminently the creditor natfor
of the world, must do for the
whole world what the old world
did for us when we as a nation
were younger.
I'VE must help the countries O
t the world financially as they cal
become customers by using oul
raw materials and our manufac
tured goods in such quantitiessa'
flwill geep American capital ant
: American labor and American
5 natural resources employed 10
full capacity. We must become
ination of foreign traders.
Neither England nor German,
t or any other great trading natiol
: had at any time in its commercia
|. history the great opportunitie
} that lie at the doors of the Unite
: States today. Worlds capacit
4 for consuming American product
t depends upon the worlds prodrt
t tive ability, its power to Great
n lwea1th with which to paw for tn