South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-01-13
ERSKINE DECLARES
U.S.. BUSINESS CAN
NOT BE KEPT DOWN
Says American Commerce is
Convalescing After Ma
ior Operation.
BY 4. II. ERSKINE.
resident Studebaker Corporation.

President Studebakcr Corporation.
American business has been un-
der a major operation, but is now
off the operating table and back In
the cOnvalescent ward. In the Ian
guage OF the street, II was some
operation" while in the language OF
the doctors, the operation was pro-
nounced "a success" even though
the patient lived. With curtaillnent
OF credit. enforced liquidation, fal-
ling prices and pended demand.
it was indeed n sick patient for six
months but you cannot Kill Ameri-
can business. which IS big enough TO
change economic conditions when
backed with the natural resources
Of this marvelously endowed coun-
try.
With our great crops. unlimited
mineral resources, big merchant ma
rine. and 100, 10000 intelligent in
genious people, America can and
should be prosperous in spite of
world conditions. Everybody was
plunging and reckless the year and
half following the end Of the war,
and we were due for a tumble, but
now that we have had il. business
can settle down and prosper on the
lower and healthier level of values
that have been esta blished by liqui-
dation. Enforced liquidation and
speculation have, in many cases.
driven prices below values and costs
OF production. When such extremes
are reached, prices rebound and
confidence slowly returns. What We
need is a sterilization Of prices ct
valuation levels, especially for farm
products, which are already below
costs Of production, and return
Of confidence which will bring buy
ers back into the market.
Can't Keep Business Down.
Speaking generally. Lrices Of raw
materials are liquidated 10 a valua-
ton basis. but retail prices for some
goods are yet too high. This latter
situation will undoubtedly be clear
ed up before the winter is over, and
with the return of spring and sun
shine people will have more pep"
and enthusiasm. Our feeling of
blues is to large degree
psychological. American business
cannot be kept down, and will re-
bound 10 big volume with surprising
recovery The idea of from two TO
FIVE years Of continued depression
besettiDg this country is dangerous
10 foster. repugnant and impossible.
because American industry and the
spirit OF American business will not
permit 1t.
The gigantic industries of Amer
lea. marvellous in their ingenuity.
ability and extent. are the work
shops Of the world, supplying not
only our domestic requirements of
Practically all manufactured goods,
hut those OF the world at large to n
degree and extent which no other
industrial nation ever before achiev-
ed, or can achieve against our COM
petition, because of our vastly great
er size. This statement of fact is
not made bOastfully or in derogat ton
OF the industries Of other nations,
but simply TO reflite skeptical state
ments of extended depression. True,
the arrangement OF foreign ex-
changes. with the depreciation OF
foreign currencies, is an obstacle to
American exports that hampers
their fullest development, but a ire
mendous export trade will be done
in spite Of this situation. I am
therefore confident of the future
prosperity of American business,
and consequently. of the American
people.
Auto Business TO Recover.
Speaking broadly, the automobile
business will recover as quickly as
any and remain. as heretofore. a
conspicuous figure in American in
dustry. Anybody who thinks the
automobile business has been under
mined IS badly mistaken. II is the
third largest of our industries. and
will grow instead Of lessen in i'm
portance. The strong companies OF
the industry. with adequate plants
and carital and good products, will
grow and increase their business.
Those OF US I'm the automobile bust
ness believe in the recovery Of bust
ness, the future of our industry and
the return of prosperity this year.