Imperial Valley press., 1921-05-04
c R A D UALL| !
RETURNING
TO NORMAL
LEVELS
Bankers Chief Reports All
Economic Elements Fall
ing Into Line in Process of
Business Readjustment.
(By Associated PresS)

PINEHURST, N. c., May A
Neither money, transportation costs,
taxation nor labor can effectively or
permanently avoid the irresistible
forces that are working toward read
justment on lower level, John S.
Drum, San Francisco, president of the
American Bankers association, de-
clared in a survey of the economic sit
uation in the United States submitted
to the associations executive council
here today.
Mr.. Drums statement was based on
more than 1000 replies to a question
naire sent By the association to baAk-
ers heads of transportation companies
and other business leaders asking for
authoritative opinions as to financial,
commercial, industrial and agrlcul-
tural conditions in the nation.
All elements in the nations econOm-
ic life must fall into line in the process
of readjustment, the report said. at
would work to the disadvantage of
factors that would, if they could, keep
out of line with the rest" it added.
"The weight Of opinion is that this
tendency toward stabilization will not
be accomplished in the fear or two
years that lie just ahead Of u.s."
An abrupt transition from the infla-
ton resulting from the war to normal
conditions of peace-time is impossible,
Mr.. Drum said. "The process of re-
adjustment must be gradual" he con-
tinued. First, one element, then ar
other, feels the operation of the mex
orable forces that are working to re-
store normal conditions"
Mr.. Drum declared pessimists have
told us that world disrupted by war
is being speeded by irresistible forces
on the road to economic ruin, while ex-
'treme optimists say that around the
next corner lies unbounded prosperity.
waiting only for our arrival at the
turn. Neither belief was substan-
tiated by Mr.. Drum, who said that
common sense, and a knowledge of
fact, with clear vision, must guide the
nation in its struggle to solve the
broad economic problems that have
grown out of the war and the peace.
Discussing labor, the survey said
wages did not rise as rapidly as COM
modify prices during the war and The
initiation period and their general ten
dency will be the last to fall with re-
adjustment. Thousands and thousands
of workers, however, have been thrown
out of employment when costs of pro
duction were reduced as result of the
decline in the worlds purchasing pow
er and the consequent restriction of
demand.
Wage reductions have been accepted
in many industries but not in the
building trades and among railway
employees, Mr. Drum said. "The eff
feet of this resistance to the economic
laws working toward stagnation is ap-
parent in comparative stagnation il
most parts of the country in all eX-
cept essential building construction
and in the great decrease in railway
traffic because if high rates caused by
operating COSTS" he added Labor nc
more than any other factor can sue
cessfully resist the operation of eco
nomic law; a Danish king once trieC
to stop the tide"
Touching on the railroad situation
Mr.. Drum declared rate increases a
time when other services and com
modities were falling had disastrous
influence on the nations business. Th'
so-called liquidation of labor has beer
perhaps the principal cause of thes'
strangling freight rates. Opinions eN
Continued on page FOUR