The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-10-04
THINGS LOOK
BETTER, SAY
u. s. BANKERS
President Drum Says There
is Nothing in Situation to
Give Rise to Pessimistic
View.
POINT TO IMPROVEMENT
CBv Associated Press,

LOS ANGELES, OCT. 4-The dlSpos-
al of billions of dollars by some $4,000
banks was cheerfully discussed here
today at the opening of the 47th an
nual convention of the American Bank
ers association.
Things are looking better, the
times are not so badly out of joint as
year ago, irresistible forces are
working in the overturning Of these
millions of dollars toward more pros
of depression is out of place" it was
said by leaders in the nations finan-
cial world
The chief event of the program of
the formal opening session today was
forty two thousand word report by
the president of the association, John
review of the situation today. coun-
try wide economic survey expressing
the opinion of more than thousand
bankers. A twelve thousand five hun
dred word analysis of it was followed
by summary of the condition in every
state.
President Drum crystallized it in 26
of the $4,000 words
There is nothing in either the do
mestic or the foreign situation to give
rise to the pessimistic conclusion that
the world is riding straight to ruin
II of
tion today" he said. must prove to
the greatest doubter that our problems
are but the natural manifestations of
a worldwide maladjustment that great
natural forces are working to remedy"
Reports from more than thousand
bankers provided the basis for his sub
ject he said
! "The output of finished goods
throughout the country is considerably
smaller than year ago, and measur-
| ably smaller than six months ago." Mr..
Drum said. There is a surplus of
manufactured commodities in the
! hands of the producers A progressive
decline in the costs of manufacturing
| has taken place during the year In
] industry, as whole, the costs of mq-
! terials, labor and construction have
lutCIlhtu- III Tic luCT6dS-
ed efficiency of labor has been the
natural result of unemployment on
large scale, but the efficiency of men
/ in the building trades as a whole has
not increased.
| Taxation in industrial sections has
! either increased or remained station
! airy during the year; in no case is a
| decrease reported. Wholesale prices
of manufactured goods have decreased
| steadily through the year Retail
prices on the whole also have declined
steadily although not in the same pro-
portion as wholesale prices.
Buying Power Lower
IN the great cotton states of the
south, in the agricultural states of the
middle west and the west, in the west
ern mining and cattle raising states.
in the lumber producing regions of
the northwest and the southeast, there
has been great reduction in buying
power, consequently a slackened de.
mand for natural products and a re-
duction in their value without a com
mensurate decrease in the prices OF
finished goods.
in the industrial regions there has
been reduction of production conse.
quent upon reduced foreign purchas
ing and reduced buying by producers
OF natural products at home This
reduction in output of manufactured
goods In industrial centers has thrown
millions of men out of employment
and consequently has operated to re
duce further the national buying
power.
"lf world influences in the process
of readjustment could be divorced
from domestic influences this country
!, would not now be considering prob
lens of readiustment: it would have
solved them and would be walking IL
the old path. But this could not anc
cannot be; world influences now anc
henceforth must have powerful
; bearing even on the problems that ir
former years were considered purely
domestic
Three Things Retardino.
The reports ! have received alsc
: have shown that the three great do
mestic influences that more than all
others are retarding the readjustment
!, OF prices and costs are these:
"First-Delayed adjustment of cost
of labor, which prevents adequate re
duction of prices of innumerable com
modlUeS and services in the cost o.
which the cost of labor is the mos
: important factor, and also serves Il
! prevent full employment of labor
> This is due both to slow adjustment
; of compensation of labor and to thu
: continuation of shop rules that i'm
/ pair its efficiency.
I Second-Sustained high costs O
s transportation. which prevent natura
n and normal movement of commoditie,
d of all kinds to markets.
l. "Third-Continuatio of an unsounS
e system of taxation that diverts work
/ ing capital from its proper channe'
and thereby prevents accumulation
II of working capital that is necessar.
n for increased production for installa
Il tion of improved methods of produo
tion and for full employment of labor
It Common opinion, expressed in hun
p dreds of reports that make up the sur
1t vey, is that when these three deter
n rent influences have been eliminate,
n the chief obstacles to a restoration o
IS a proper and equitable price level will
J. have been removed. trading betweel