New-York tribune., 1921-10-06
4. S. Business
Melntling Fast,
Bankers Assert
Warburg Tells Convention
Worst Credit S'ringency Is
Past and New Worldwide
Era Of Prosperity Is Near
HardingProgram Credited
Lone Note of Pessin,is,1, r.
Sounded by Rail Head III,
Attack on Ship Board
Special Dispatch TO The Tribune


Los ANGELES, Oct. 5.-Optimism
ruled to-day's session Of the conven-
tion Of the American Bankers Associa-
ton, as various financial authorities
declared their conviction that the
worst Of the period of depression had
been weathered safely and that busi-
ness conditions, not only in this
country, but in Europe, as well were
moving toward a renewed prosperity.
The only pessimistic note concerted thc
railroads and was given hy President
William Sproule of the Southern
Pacific who appealed to public opinion
TO help restore the roads to a sound
basis.
The economic policy commission Of
the convention, of which Paul NJ. War
burg, of New York, is chairman, sub
mltted report in which it was as
serted that the worst OF the credit
strlngency seemed TO be past and that
natural recuperative forces were now
making for recovery.
There is every reason to believe"
the report continued, Chat when
wages have been readjusted and nor
NAL balance is le~established between
industries and between nations. our
country Will enter upon new career
OF prosperity and advancement.
Assail Legislative "Cure-AIls"
"Tne commission again points to the
dangerous Attempts which are made so
frequently at present to undertake TO
cure all existing economic evils by
Legislative action. The commission
feels strongly that most Of our
troubles will be cradicated more
tol, " :. !.
economic laws are allowed free play.
"The commission regards especially
many Of the amendments proposed to
the Federal Reserve act as undesir-
able and calculated to lessen the bene-
fits to be derived from the Federal
Reserve system. The commission be-
lieves that so long as the Federal Re
serve system is able 80 continue its
work az successfully as it has begun.
il should be left to function with the
least possible interference
Harding Policy Praised
"The commission approves the policy
Of the present national Administration q
in refraining. SO far as possible from
COVE snmental participation in private
business undertakings, and in seeking
to effect economies in administration
wherever possible. It welcomes, there
fore, the inauguration of a budget sys-
tenn The mission reported it
was convinced OF the Gcsirability Of
repeating the excess profits tax, and
declared the repeal should be made
retroactive FOR the year 1921.
"Since economy in government is
one OF the primary needs OF the pres
eat time" the report continues, "the
commission hopes that the soldiers
bonus bill viii be definitely set aside.
The commission indo~ses the action
OF President harding in proposing an
international conference 10 consider t,
common program for the reduction of
military and naval expenditures, which
still form ore Of the heaviest financial
burdens borne by ell the nations.
"'Ihe commission fully supports the
purpose Of the Federal Admin stration
in bringing about d refunding OF the
railroads debt to the government over
a period OF years"
The report Of The economic policy