The New York herald., 1921-10-05
1000 BANKERS In US
SEE TRADE MENDING
Reports to Los Angeles Con-
vention Show No Cause
for Pessimism.

Los ANGELES, Oct 4.--There Is moth
Ing In either the domestic or foreign
situation to give rise to the pessimistic
conclusion that the world Is riding
straight to ruin. John S. Drum. banker
Of San Francisco. told the American
Bankers Association. OF which he Is
president. at the opening session here
to-day Of It's forty-scventh annual con-
vention.
Rational examination OF our condi-
ton to-day" he said. must prove to
the greatest doubtcr that our problems
are but the natural manifestations OF
world wide maladjustment that great
natural forces are working TO remedy.
Reports from more than thousand
bankers provided the basis for his sub
ject. he said
"Taxation in Industrial sections has
either increased or remained stationary
during the year In no case Is decrease
reported. wholesale prices of manufac-
tured goods have decreased steadily. Re
tail prices, on the whole, also have de-
clined steadily, although not In the same
proportion as wholesale prices.
The reports I have received also have
shown that the three great domestic In
fuences that more than all others are
rctarding the readjustnnent OF prices ana
costs are these:
..First-Delayed adjustment of cost of
labor. which prevents adequate reduce
ton of prices OF tnnumerabic conmodi-
ties and services in the cost OF which
labor is the most important factor, and
also serves to prevent full employment
Of labor. This Is due both to slow ad-
justment. Of compensation OF labor ana
to the Continuation OF shop rules tnAt
inpair it's efficiency.
= ne
TRANSFORMATION, which prevent natural
and normal movement of commodities OF
all kinds to markets.
Third of an unsound
system Of taxation that diverts working
capital from It's proper channels and
thereby prevents accumulation OF work.
ing capital that is necessary for In
creased production. for installation OF
improved methods Of production and for
full employment Of labor. -:
Common opinion. expressed in hum
dreds Of reports that make UP this
survey, Is that when these three deter
rent influences have been eliminated
the chief obstacles to a restoration OF
a proper and equitable price equilibrium
will be removed. trading between one
group Of producers and others will pro-
ceed naturally and labor and capital
will be more fully employed In produc-
tive enterprise"
After the general session in the fore
noon the delegates went into divisional
sessions OF the trust company section.
the savings bank section and the clear
ing house section Speakers included
Henry M. Campbell. Detroit, and Victor
A. Lersner. New York.
There Is not enough human touch"
In the contact Of bankers with their
patrons. II was asserted by Alexander
Dunbar OF Pittsburgh. president Of the
Pennsylvania Bankers Association. In
an address before the clearing house
section.
I'VE are now at point where we
must follow the Golden Rule. if not
from love, then from sheer force OF
necessity" he declared. THE rchabili-
tation OF world business and world az
fairs rests four-square upon the practice
OF the old fashioned but ever beautiful
doctrine-'Do unto others as you would
have others do unto you Selfishncss Is
the great sin of the age
The appointment OF committee OF
from three TO FIVE members to carry
on the work of developing the accept
ance methods, Of financing was rnndc
to the convention IN a report Of the
acceptance committee.
"Our open discount market and the
means for caring for long term interest
trade credits are the two vital features
OF our financial machinery that need
further and immediate development"
the report stated -