Imperial Valley press. (El Centro, Calif.) 1907-current, 1921-06-06
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Comprehensive Survey Re-
veals California Must De-
vel0p Her Industrial Re-
sources to Hold Her Own.

SACRAMENTO, June G.-If the
state of California is to reach the full
measure of material development, is
must become an industrial, as web as
an agricultural state-in short, it must
become self-sustaining, or as nearly
so as it is possible to be, and tie
sooner the better, says John S. Cham
bers, state controller. Present dis
couraging conditions merely force
home the realization of this fact, long
known but ignored The situation is
urgent.
The new $10O,0O0,0O0 foreign trade
financing corporation now being SCI
up under the authority Gf the Edge Act
can and will do for our foreign trade
what the banks of America, under tie
Federal Reserve System, do for our
internal commerce, but we on the
Pacific Coast must go step further
and be prepared to develop our own
materials for export if we expect to
take full advantage of the foreign
trade financing machinery
The reason for this necessity lies
in the fact that the present high
freight rate across the continent, TAX
en- in conjunction with the ability OF
the foreigner and of the eastern man
ufacturer to trade by way of the Pan
anna Canal, bids fair to close Pacific
ports to foreign business and to divert
that business to New York, Boston
and Philadelphia.
The reason is certainly plain. 1t IS
cheaper for an importer OF silks from
Nagasaki to pay water freight by the
ID. tl,,, Oh hoI NV
rail from New York to the factory
than it is to dock his vessel IN San
Francisco and ship across the CONT
nent. This means that if we DO not
look out, if we do not build our own
industries for our own Pacific coast
trade, the growing traffic between
America and the Orient will pass us
by.
This is not entirely the fault of the
railroads nor the fault of the present
rate. Even a return to pre-War trans
continental freight rates would still
leave us in somewhat the same posi-
ton which we now occupy, because to-
day America has a n4rNlant marine.
1t can ship by water and it will use
the cheapest method for the handling
of it's commerce. Witness the ship
ment of California fruit to New York
by water and the shipment of Pitts
burgh steel to Los Angeles and San
Francisco by the same method. Comes
then the problem of developing our
own manufactures for our own foreign
trade. In spite of the temporary in
crease in oil stocks in California, due
to increased production and the slow
ing up of demand through reduction
of operations in certain lines of Indus
try there is every indication that oil
prices will not be materially reduced
on the Pacific Coast ana ;nese prices
are now approximately three times
what they were six years ago.
| With the return of business to nor
may, with increased production IN our
factories and with increased produc-
ton upon our oil burning railroads.
the demands upon California oil Will
inevitably catch up with even ouf m
creased production.
This means the Pacific Coast bust
ness, particularly in California, car
hope to develop only as our hydro
electric power reduces the cost of the
forces necessary to turn the wheels OF
our industries. Fortunately, invest
ment in the securities of California
power companies rests upon a very
safe basis.
hold no brief for these companies
but | do hold one for the manufactur,
err, the laborer and the agriculturist
which these companies serve, and
want to point out that in the end the
prosperity of California depends upor
1.-THE ability of the power companies tC
furnish the constantly increasing pow
err which this state demands.
AS it is, there is a constant west
ward flow of people who come here t.
make their homes, and we are eithe
going to bring across the continent tn,
manufactured necessities of their lif