The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-05-08
PRESIDENT OF NATIONAL BANKERS
ASSOCIATION DECLARES AN ABRUPT
DEFLATI0N WOULD BE DISASTROUS

ployes. Mr. Drum said. The effect
Of this resistance to the economic laws
working toward stagnation is apparent
in comparative stagnation in most
parts Of the country in all except essen-
tal building construction and in the
great decrease in railway traffic be
cause of high rates caused by operating
costs. he added Labor no more
than any other factor can successful
" resist the operation Of economic
law; Danish king once tried to stop
the tide
Under the heading of Materials
the survey said they were the first Of
the elements to feel the upward i'm
pulse when the war came and already
were the first to respond toward a new
lower level. II is difficult TO say
whether reduced industrial activity in
the United States or reduced manu-
featuring ability Of European countries
has been the more potent factor in de-
creasing the prices of raw materials.
The weight of opinion is that as read
iustment at home and abroad pro-
crosses there will be a reaction and
the products of our farms and forests
and mines will move. Much of the
product is lying idle, although prices
in some instances are as low on lower
than those before the war.
Touching on the railroad situation,
Mr. Drum declared rate increases at
a time when other services and commo'
dities were falling had disastrous in
fluence on the nations business. The
so-called liquidation of labor .has been
perhaps the principal cause of these
strangling freight rates Opinions eX-
pressed i'm the questionnaires were
that solution Of the problem confront
ing the transportation systems-that
Of operating with financial safety ana
at the same time reducing rates TO a
point at which their effect ON indus
try will not be oppressive-is one oi
the most pressing immediate ore-re'
auisites of stabilized conditions.
Questions in the survey regarding
taxation showed there is discomfort
with systems of taxation which Mr.
Drum said never were Just in prin-
cple nor scientific in method of col
lection. There is virtually unanimous
opposition to the excess profits tax.
Majority sentiment favors a sales tax
to replace the excess profits tax. OPP
position 10 sales tax was found
among retailers.
k Answers to the questionnaires, Mr.
Drum said, showed there is reasoned
opposition To cancellation Of the allied
debts to the United States. based chief
" ON the argument that cancellation
would greatly increase taxation in TINS
country II was further felt that Tor
cign governments do not desire cancel
lation the theory being that it would
weaken the efforts of European coun
tries to restore sound financial prac
tees The minority favoring cancel
lation argued it would operate to stim-
ulate foreign trade by relieving the
| European credit situation and by stab
| liZing exchange.
Other answers Indicated that liqui
dation has not yet proceeded to
point that will make possible reduc
| ton of interests rates at least before
| the last months of this year. The
basis for this belief are found in the
| slow liquidation of commodities viii
| the resultant freezing of domestic ant
foreign credits and in continued gov
ernmcnt borrowings.
Despite buyers strike. many re-
| iailors were unwilling To take theil
losses and sell for lower prices, Mr.
Drum said in discussing domestic