Evening star., 1921-04-29
WAY FOR BUSINESS
i RECOVERY SHOWN
Secretary Hoover Strikes
Keynote of Recuperation
Before Commerce Chamber.
By tho Associated Press.

By tho Associated Press.
ATLANTIC CITY, April 29-Main-
tenance af a government Information
service to compile and publish pro-
duction and consumption figures of
the more important industries and the
primary prices of few commodities
as a remedy for high prices and prof
iteering was advocated here last night
by Herbert Hoover. secretary of Com
merce. in an address before the ninth
annual convention of the United
States Chamber of Commerce.
Stability and soundness of business
could be greatly enhanced and vicious
speculation Curtailed. Mr.. Hoover de-
clared. through realization by the pub
lie of the true conditions in the vari-
Gus industries.
Many forces are involved in the eco
nomc readjustment of the country.
Mr.. Hoover declared, but there are
many encouraging signs. Many
manufacturers and Wholesalers he
said. are making cuts in their in
ventorieS that equal or exceed the in
creaSes which they obtained when we
were on the upgrade. They are pass
ing their savings in raw materials and
labor on to the next step in diStribu
tion. Economically, the retailer is of
necessity the last of the chain to make
REIMBURSEMENT and in some localities
and some lines of business has been
= less responsive to the necessity for
this readjustment than the situation
calls for.
Wholesalers Wise Buyers.
THE processes of competition work
very sharply and promptly upon the
manufacturer and wholesaler because
the buyers are comparatively few and
wise. They do not so react upon the
retailer because the public at large is
not so wise and is too inert to do that
shopping around for the best bargains
which is necessary to set up the proc
esSeS of competition"
Labor, Mr.. Hoover declared, is grow
ing in efficiency and shows a willing
ness to make reductions in wages in
many directions, but the costs OF
building construction have not come
down with other industries.
The railroads were described by Mr..
Hoover as the keys of industry" but
the advisability of the continued use
OF an emergency horizontal basis Of
rate increases, he declared. could be
seriously questioned. Horizontal in
creases. he said have thrown the rel
ativity of rates out of gear both as
TO commodity values and zones of dis
tribution.
In the field of foreign commerce."
he continued. the. shrinkage in our
exports thunderS at the doors of every
nome in America the warning that we
nave no isolation from the problems
VI thc "oEIu ne unSettlen ant OF the
German indemnity. the failure of the
united States to make peace the
maintenance of great armanients and
back-breaking taxes, the continued
hemorrhages of paper money in many
Foreign states. their struggles over
naturalization of industry. the situa-
lIon In Russia. all initiate against
European recovery and react upon
Longtime Credits Favored.
without great shrinkage of in
dustry. Mr.. Hoover contended. the
country could not for a generation alb
sorb enough imports to balance ex-
ports. But a favorable trade balance
could be continued. he asserted by
fhe relnvestment of the balance in
longtime credits. Means must be de-
Vlsed, ne said, to combat the c6mpe-
luton of foreign combinations for ex-
port and import and he suggested the
1egaizing OF combinations for i'm
port into this country. Distinct signs
are evident in foreign commercial or
which calls for remedy
Ouring the address Mr. Hoover gave
out the following statistics to show
tne emergencies in high prices main
tanned in different commodities.
Nothins. he said. is more indicative
OF this lack of alignment, in the march
OF readJustment than the repetition of
recent commodity and labor indexes as
compared to 100 pre-war base:
Farm prices (crops) II,
Farm prices (animals) s)....,I23
RetaiI Tnod ''-''.-....... $50
netdil 1000
Railway receipts per ton mile. .1SS
LisHtIhS 2O7
building materials. 2Ia
House furnishings o75
New York Industrial Commission
wage index. x........ 91o
Department labor, hourly union
wage index.
Il find considerable discoura perant
IN some trades" he concluded. at the
apparent inability to meet German
competition. At the present moment
German manufacturers are exnortinS
goods at prices that we can meet with
great difhculty in foreign markets and
are indeed, invading our home markets
at such levels that We need strenuous
protection If some of our industries are
,p o. 10 close do not think. however,
tnat the present level of prices by our
German commercial and Industrial
Tinals can continue indefinitely"
Inc ADDRESS Of the Secretary of Conn
nercs came at the end of busy dav
Tor ths~delegates. who discussed The
taxation and tariff problems facing The
country. VIC
should Consider Exports,
While the vote of the various ero,ns
ol oeleeates was withheld, il is under
$1,000 they decided that any permanent
Arlu legislation program must he
Tamed with due regard to export trade
as wen as TO the production of manu-
1acturing in the United States
=. Ihey also indorse the proposition that
our tariff policy should take intn -
sloeratlon tto economic needs of foreign
countries and the fact that we arc nou,
credltor nation and should offer trad
ing or bargaining possibilities for inter
national commercial treaties to encour-
age our export trade"
Inc vote on the question of wbether
the government should levy sales ray
was also withheld, but unofficial renorts
Indicated that the tax was approved
Government and municipal ownership
WIN not solve the country's public utili-
ues problem Edward n. Hurley, Chi
caSo manufacturer and former head of
tne Shipping Board, today told the dele
Sates 10 the ninth annual convention of
the United States Chamber of Commerce
He advised the public utilities com.
panies and the public to ge, together
and iron out their troubles and wine
out any doubt of distrust that fingers /"
Government operation in industrial
service, said Mr.. Hurley, "is fiat fail
ure from service TO the public stand
point Ihis IS not only true in America
put u IS a proven fact throughout the
world
L am convinced that it Will be found
that the lack of personal efficiency under
municipal or governmental industrial
ownership spells financial failure for the
enterprise"
The American people must realize
that confidence in public utility securi-