New-York tribune., 1921-04-29
Trade Revival
Corning,Hoover
Tells Business
Less Protiteering Going On
as Prices Settle Slowly to
Peace Levels, u. S. Com
merce Chamber Hears
roresees Rail Rates Cut
Convention Groups Suggest
Tariff Adjustment Board:
Divided on Tax Changes
r-o~ a STAFF Correspondent

ATLANTIC CITY, April 2s.-After
~re,sling all day with tariff and tax
.s;on problems in order to reach a
cannon ground, the delegates at the
ss.nnd days session of the ninth an
nal convention of the Chamber of
Sammerce Of the United States gath
sred at Youug's Pier tonight to greet
usrbert c. Hoover. Secretary of Com
msrce. Mr.. Hoover's speech. refresh
nc and hopeful. came as the climax
"a busy day, and his analysis of the
,.rcled state of trade was received
vith warm enthusiasm.
After diagnosing the ailments of
,usiness Mr.. Hoover canvassed the
Indications of Improvement.
"There are many encouraging signs
"a this readjustment." he said. There
i very much less speculation and
sro6teering. Many manufacturers and
wholesalers are making cuts in their
Inventories that equal or exceed the in
eresses which they obtained when we
sere on the upgrade. They are pass
;ss their savings in raw material and
lsbor on to the next step in distribu-
sion
Retailer the Last to Act
Economically the retailer is of ne
cessity the last of the chain to make
uadjustm ent, and in some localities
snd some lines he has been less respon-
s;ye to the necessity of this readiust-
nent than the situation call for. The
processes Of competition work very
sharply and promptly upon the manu-
;seturer and wholesaler because the
buvers are comparatively few and very
wise. They do not so react upon the
retailer because the public at large is
not so wise and is too inert to do that
shopping around for the best bargains
which Is necessary to set up the proc
esses Of competition.
labor shows willingness to make
reductions in wages in many direc-
tons and, I believe, to face even fur
ther reductions, if it's sacrifices can be
demonstratively handed on in general
reductions of final price levels, so that
the cost of living travels in step
Labor Is growing in efficiency and
shows q willingness to remove the
Objectionable limitations that grew up
in some industries during the war.
ut is entirely possible for US to
maintain our high standards of living
il We can secure equitable readjust-
ments all along the line. But We must
face the fact that if we are to hold to
our higher standards of living and to
sgsinst the competition of the living
standards of Europe, lowered for a
whole generation, we must do it by
better Judgment, greater efficiency ard
by harder work"
In assessing the causes of the de-
preston Mr.. Hoover specified BADLY
adjusted railway rates, excessive and
badly adjusted taxes, insufficient tariff.
high wages, high profits. high interest,
restriction on effort by labor and q
dozen others, while our domestic re-
operation is sadly interlocked with the
recovery Of Europe"
Price Changes Not Equitable
The Secretary laid special emphasis
in his paper on the inequities Of the
present status of the adjustment, in
dicating that the ralative prices of COM
modities were abnormal, since some
had fallen or risen out of proportion to
others.
There is," he insisted, "slow and
only partial realization by some bank
ers, directors of public utilities. manu-
iac.urers and distributors, both en-
poyers and employees included, Of the
fact that we must approach a parity
Of levels in profits. prices and wages
in different industries. Some groups
are able to put up stronger resistance
to reduction of economic levels than
others. For instance, this resistance
against lower levels In the services and
commodities that the farmer must buy
in the face Of his very much lower re-
turns is already digging grave of un-
employment for other industries"
The speaker applied this same logic
TO the railroad situation. II believe"
he declared, "any examination of the
rate-making structure of this country
will SHOW that it was based funda-
mentally upon charges varying, to
rough extent, with the vaue of commod-
tiles This method was modified by
competition and by the deliberate pol
icy Of the railways to stimulate local
Industries and local production. Hori-
zontal rate increases throw the rela-