South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-10-18
TUESDAY

Optimism IS tho keynote Of senu-
ment expressed by various business
men and captains 81 industry OF
south Bend. with regard % the future
business outlook in the country
Statements on me situation obtained
from heads q Industrial financial
and trade organizations by the
Chamber OF Commerce all express
the belief that the low level Of busi-
ness depression has been passed and
trade is on the upgrade.
A. X. Ersldne. president OF the
Studebaker corporation. ~ among
the number who discussed the stu
alton. Dir. F.rsIziue says.
The chief cause ~ 1he great de-
preston business has experienced
vac the suddcnness Of the collapse
in Inflated prices. Last fan the pub
lie suddenly decided 10 curtau buy
ire. and price cutting 20 stimulate
sales and reduce heavy inventories.
falling in its purpose, procipitated
forced liquidation with great losses
10 business and farmers as well.
Goods were marketed at a fraction
az their cost, and producers gener-
ally suffered severely. Hundreds or
CORPORATIONS defauIted en- the pay
ment Of regular dividends and I'D
bond interest. and farmers sold crops
az great loss. Corporation inven-
tories at high prices have beer pretty
generssly Iiquidated. and goods now
on hand were manufactured on the
basis OF existing low costs. There
are some exceptions, but j believe
most corporation inventories are
pretty well liquidated. The carry
over Of cotton. copper and wheat
arc still large. but bank loans have
been greatly reduced. and our banks
generally are in strong condition.
Interest rates have been reduced,
wages have also, labor is more ef-
ncient. and the general situation IL
much healthier. Nobody can disre-
gard this fact Many constructive
forces are at work. and optimism
Is beginning 10 prevail In the public
mind The psychological attitude in
such matters is most important.
"A notable recent item Of con-
structive news is the purchase OF
s3fO.OOO.OOO Of equipment trust Ger
tIhcates from the railroads by the
federal railroad administration,
which will permit the railroads TO
rchabilitate their railroad stock, pay
off their Obligations to car equip
ment com panics. and give employ
ment 10 thousands Of men. The rail-
road administration is selling these
equipment trust certificates TO the
public. S12.OOO.OOO OF Them being
offered recently. These notes are
good investments, and the public
viii buy them.
Another constructive news item
is the reduction Of the rediscount
rate TO per cent by the Federal
Reserve bank Of New York. Another
is the prospect of the passage Of
the revised tax bill in the next few
weeks and 10 looks like the worst -
over and that progress must be made
this fall i'm business generally. While
not over-enthusiasic, ] am optimis-
tic over the future.
I'VE have recently made sharp re-
auctions I'm the prices of the light six
cars produced IN our South Bend
plants. and substantial increases in
orders have followed. My chief con-
Germ is 10 operate the local plants
throughout the winter at capacity
and thereby hold together our or
ganization and furnish employment
10 our people. We feel a moral re-
sponsfbility in this connection. and
I have great hopes that we viii sue
coed in going through the winter
without curtaiment.'