South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-08-21
Must Put ''Humpty Dumpty'
Back on Economic Wall,
Writes Manufacturer.

An optimistic outlook for the au-
tomobile industry Is held by A. R.
ErslSinne. OF South Bend, president
CT the Studebaker corporation OF
America:
In the current number OF Com
merce and Finance. Mr.. Erskine
writes:
Looking forward, II may be I'M
hesitspingiy declared that the auto
mobile industry is an established
business with an assured future that
nothing can wreck. Prima facie ev-
idence OF this fact abounds every
where, illustrations Of which are:
4. The general adoption OF mo-
tive power for transmission pur-
poses.
-. The practical elimination Of
the horse from urban communities.
%. The universal desire for pos
session by all races and both sexes
in all countries. which desire stands
unique in the history OF manufac-
tured products and exists with few
others except clothing and food.
"a. The multiplication Of automo-
I bile users by Eve times in the past
nine years
IS. And finally, the fact that these
users have always been and are now
subjected 10 heavy, discriminatory
and unfair taxation by every ma
tional, state and municipal govern
ment and yet they survive and null
tiply.
Worlds Darling
The automobile is the world S
darling Over 100000 motor cars
and trucks are now in use through
out the world. go per cent Of which
were made and used in this country.
The existing plant equipment Of the
I United States is capable of produc-
ing 100000 cars annually, with
one plant alone having a capacity Of
| 100000. and several 100000 and
better. Several of these plants, in
construction, scope and capacity, are
marvels OF the worlds industries,
with duplicates nowhere on earth.
/ European plants so far have never
been quantity producers. and with
out the protection Of stiff tariffs ana
/ high dollar exchange they could not
successfully compete against the
| United States. even in their own
home markets, because their home
markets are not big enough nor
wealthy enough to absorb quantity
production TO the extent our home
market absorbs it: and quantity pro-
duction IS essential to low cost. A
lplant in any industrial country OF
Europe undertaking quantity pro-
duction OF say 100000 cars per an
mum would find IL necessary 10 seek
export markets for perhaps 90 per
cent Of production, whereas our
home markets absorb 90 per cent OIL
our production and we export but
| 10 per cent. The disadvantages OF
tariffs snd exchange are less serious
( in South America. Australia, Asia,
Africa and other agricultural coun-
tries, and hence European compet-
| ton is easier there than it is in the
/ European home markets. The fact
remains, however, that we have the
advantage OF abundant raw materials
and low cost arising from standard
| liza ton and quantity manufacture.
which offset in some measure the ar
! tificiaI handicaps Of tariffs and ex-
lchange, and for these reasons Amer
lean cars should lead the worlds
markets for decades to come.
THE American automobile indus
try is physically and financially fl
and ready 10 advance and keep step
with business recovery in this coun-
/ try and throughout the world. II
will not be a laggard, and might wei
be a leader Who knows?
Put Humpty Dumpty Back.
From conditions somewhat sub
normal in 1914, the war shot al
business to dizzy heights. from which
1T mad the inevitable fan World eco
nomic conditions have changed for
Our genera ton, and undoubtedly
the time is out Of joint but we are
born TO set it right We must pu
/ Humpty Dumpty back on the wall
but the question is how high should
the wall be? What standards shall
we set UP for normal business? The
volumes of 1919 and 1920 obviously
will not be easily obtainable in the
near future Each industry mus
settle the question Of normally fol
itself. Such industries as are over