The Washington herald., 1921-04-09
Great Confidence Caused
By New Administra-
tons Functions.
ORDERLY DESCENT
Banking Machinery Firm with
Reasonable Activity Dur
ing Present Depression.

tomobile exhibit receptly heiu IN
New York City, Charles Elliot war
rem, vice president Of IRVING Ma
tional Bank. in discussing the pres
ent ecohomic and general SITUATION
and the motor industry said IN
part:
.-rhe advent of the new admins
tration at washington, which en-
tered on its duties with possibly
the least ceremony of any in the,
history of the government. causes
a general feeling of confidence in
the future.a for It is believed that
we shall ind business allowed to
go on freely along its legitimate
channel unhampered by govern
ment any more than needs be.
Opinions Diversified.
"A diversity Of opinion among
the banks of the country obtains as
TO the present economic and gem
eral situation. 1t may be said that
the present Industrial situation. in
some of its phases, Is perhaps the
most trying that this country has
experienced in many years. Our
durries or hard times Of 1893 and
1907 were not so serious because
the reversal was neither so severe
II.
the war was that we fell from the
heights of prosperity to the depths
of depression. and while that proc
ess dragged considerably. the de-
scent at all times is and has been
orderly. The wave of high prices
and unprecedented profits broke,
and we were confronted with a
condition in which buying almost
ceased Cancellations of orders
were numerous, prices melted and
profits, in many cases. gave way TO
losses. During this recent and the
present period Of depression bank
ing machinery has been sound. rea-
sonably active, and banks hav.
been able to take care of their Gus
toners without undue strain. which
was not always so during periods
of like nature in the past. II has
been stated that our affairs in this
part of the country (and 1t may be
said that this statement is gener-
ally true of all the country are be-
ing adjusted along satisfactory
lines. II is certainly significant
that employees in Industries have
acquiesced where wage cuts have
been agreed upon, which tustifies
the hope of orderly adjustment all
business sentiment shows improve
menL
at is evident that the reduction
in purchasing power. incident to
price decreases in our markets and
the large number of unemployed
men, has been overestimated. which
fact accounts, to a large extent. for
a reviving trade in numerous di-
rections.
Our troubles here in the United
States. severe as they are at this
time, shrink in importance when
compared with the difficulties of
other countries of the world. We
are an exceedingly favored people;
we have enormous resources,
strength. capable business leader
ship. and a banking and credit
mechanism which functions re-
markably well. Had IL not been so.
we would have suffered severe con-
sequences
Motor Industry.
80 much for the general situs-
tion. Now as to the motor car and
truck industry: The National .Au-
tomobile Chamber of Commerce es-
Inmates that there are now regis
tered In the United States approxi-
mately s.211. 900 passenger cars and
trucks. The average life of the au-
tomobile is 81 years. At the end
of 1891 there should be approxi-
mately 100000 cars registered
and in use in the United States;
that would mean that 1t would take
100000 cars at least to care for
the Annual elimination of motor
cars in this country. Production in
the last year. 1920. was ..241.ooo
cars. "a
Briefly speaking. the meaning Of
the Industry Is hrst-Transporta-
tion. involving the use of the truck
for the short haul and for the long
haul and the saving to the rail-
roads: second-the family automo-
bile. for. the saving Of time and the
carrying Of supplies and the >ieas-
ure vehicle; third. the DEVELOPMENT
OF the farm. the tractor, haulage of
supplies and product-the economic
value to agriculture.
NOW as to the future of the in
dustry, the war opened the ewes Of
the world to quick TRANSPORTATION
IN which the motor played an I'm
portant and prominent part. II d.-
veloped transportation in out ot IN.
way places and<brought about ths
application Of American export ~
machinery units for the automobils =
and IL must necessarily follow that
the manufacturer. dealer and r.-
taller will place the automobil. q.
( an American product In foreign
countries as was done with the sew-
Ing machine. These ends. n brou1h,
about viii develop the market and
De a means n economic rehaSiIit.- n
tion. OF future business and An .,d
to American finance.
outieek Eneeuraxfnx.
TO sum up let us say then the
outlook Is encouraging and vhiIs
the world is not yet we'll ar,I,
ana care and prudence must he ct"
ercised In all matters, busines. me,
reaiize that forced action based an
ertineiai optimism may lead IL nm
wise action and produce fur,h.r
emoerrassment. Yet the dsvn -.
n ana u is believed that 4
eon1oenee u slowly spreading and
while there Is q hesitancy the ~.
OF the country are feeling their -
forward with caution ana 49,
TOT return to fairly norrs, -
d''ions during the current year.
Woolworth's March S.I..
Tne sales Of the +. W. wooIvo...