Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-05-04
LOWER PRICE LEVEL
CERTAINLY COMING
Says Comprehensive Economic
Survey Submitted to Amer
lean Bankers Association
(By Associated Press)

H1nenurSt, N. l., May r.
Neither money, transportation
costs, taxation nor labor can ef-
fectively or permanently avoid
the irrestible forces that are
working toward readjustment on
a lower level, John S. Drum, San
Francisco, president OF the Amer
ican Bankers Association, declar-
ed in survey of the economic
situation in the United States
submitted to the associations eN-
ecutive council here today.
Mr.. Drums statement was bas-
ed on more than 1000 replies to
a QUESTIONABLE sent by the assoc1-
alton to bankers, heads of trans
portation companies and other
business leaders asking for au-
thoritaive opinions as to financial,
commercial, industrial and agrl-
cultural conditions, in the nation.
All elements in the nations eco
nomic life must fall into line III
the process of readjustment. the
report said. 1t, would work to
the disadvantage of factors that
would, if they could, keep out of
line with the rest" it said. "The
weight of opinion is that this ten
dencv toward stabilization will
not be accomplished in the year
or the two years that line Just
ahead of us"
An abrupt transition from the
initiation resulting from the war
TO normal conditions of peace
lime is impossible. Mr.. Drum de-
tlared. The process OF readjust-
ment must be gradual" he CON
tinued. First, one element, then
another. feels the operation of the
inexorable forces that are work
ing to restore normal conditions.
Mr.. Dunn declared pessimists
have told us that a world disrupt
ed by war is being speeded by If
resistible forces on the road to
economic ruin. while extreme op-
tinlists say that around the next
corner lies unbounded prosperity.
waiting only for our arrival at the
turn. Neither belief was substan-
tiated by MIR. Drum. who said that
common sense, and a knowledge
of fact, with clear vision, must
guide the nation in its struggle to
solve the broad economic prob
lens that have grown out of the
war and the peace.
Our survey has shown that the
great economic problems fall into
two classes which may be eX-
pressed in terms of the problems
of production and those of costs
and markets" the survey said
Under the problem Of costs we
have these factors:
Labor. materials. transporta-
tion. money and taxation.
And the problems of markets
are these:
'Domestic-Decreased purchas
ing power. the buyers strike.
disinclination Of sellers to tak'
losses and cancellation OF orders
Foreign - Decreased purchasing
power of Europe. inadequacy o
present credit agencies. European
political and social disorganiza
ton. cancellation of order and eX
change"
Discussing labor the survey salt
wages did not rise as rapidly a
commodity prices during the wa
and the initiation period and thei
general tendency will be the las
to fall with readjustment. Thou
sands and thousands of workers
however. have been thrown on
of employment when costs c
production were reduced as re
suit of the decline in the world
purchasing power and the conse
uuent restriction of demand.
Wage reduction have been &C
cepted in many industries but nc
in building trades and among tn
railway employees. Mr.. Drum sal'
"The effect of this resistance t
the economic laws working tc
ward stagnation is apparent
comparative stagnation in mo-
parts of the country in all exceI
essential building constructio
and in the great decrease IN raj
way traffic because of high rate
caused by operating costs /
added. Labor no more than an
other factor can successfully r.
sist the operation of econom
law; a Danish king once tried I
stop the tide"
Under the heading of Mate
ials" the survey said they we
the first of the elements to fe
the upward impulse when the W;
came and already were the FIR
to respond toward a new low
level. 1t is difficult to say whetl