Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-02
QUALITY NEED
OF PRODUCTION.
SAYS SEC. DAVIS
Output of ShOddy Goods Re-
tards Business, Declares
Cabinet Member.
RECOVERY CONTINUES
BY JAMES j. DAVIS
Secretary of Labor.

In reply to question 1, 1 will say 1t Is
nv conviction that the moderate recov-
cry in general business which we are
now experiencing VIII continue during
the year 1922. 1 believe there will be
slight healthy increase in the rapidly OF
such revival, but that any 'spurts" or
booms produced in spots by "psycholog-
ical dives" will probably not only re-
| act upon the spots so in1amed, but tend
ultimately to slightly check the healthy
1 growth.
As to what in my belief would be
/ the greatest stimulating influence to bust
ness recovery. / may be pardoned for
| suggesting the withdrawal Of stimulants
and the substitution Of tonies. The first
land perhaps the only needed tonic is
return to quality. 1t is my Judgment
| that the so-called buyers strike was a
| strike against quality as well as against
prices in so far as such buyers strike
continues 1t is, in my Judgment
1 strike against quality today and not
| gainst price, except, of course along GER
/ tain special lines where prices remain
exthavagant and unreasonable While
quality along some lines is improving
the improvement here is much less notice
! able than is the decline in price. The
{ buying power of the American people,
! has Mot at any time been seriously Grip
pied, (but that buying power can only
be brought into action by the buying
wish ole the people, and that can be ex-
cited Oily By Offering them the quality
they want of the things they want
QUALrTlY NEEDED TO
REVISE BUSINESS.
This is essentially my answer to ques-
ton 8: Ahe only setback to business
that seemsN to me to be likely is that our
factories as they start up may go on
producing me same absence of quality IN
their outputk that they were able to "get
away with" tiuring the war at enormous
prices. As IL my judgment the people
will not buy Athis inferior stuff, the fac
tories win so5Rn be able to overstock the
shelves of the Rtrade with this unstable
material and &ence be forced to close
after a short run Wherever the mistake
of making Door Equality Of goods is made
I believe that ahis viii be the result
Fortunately. as ustated above, improve
meDt in 0ualitvE is somewhat general
There is. howevert practically no return
TO pre-war standaH- ds of quality, and to
my mind tbis il IN tonic which business
needs
Referring to inq4 Try 4, in my Judg-
ment the prices Of Accommodates taken as
whole viii continue TO go lower durln
1922. In some instat ces where the dt
has already been too Ngreat perhaps -
| win be advances. bud the general
curves are likely tOA tend down
gradually throughout Nhe year.
No LOWER PRICES
FOR FARM PRODUCL&<
This practically q
as to the substand
farmers purchasing
er's products are not II
! than they are now, and y
crease slightly; and if as
eral commodity prices decrS g.
chasing power of the farm
/ viii in the nature of things
I may say that I do not
| reasonable reduction in wage
/ the purchasing power of a ID n
ity of people, is going ID md
/ improvement Of business. A g
| valuable space has been use
house economists to over. -psy
the clement Of labor cost IL Am
duction. In very many, if not
the things we produce, the actin |
/ costs in the units Of production
than the administrative and selling Esd
both in actual amounts and I'M
l centaCe of total costs 4 drive TO
I date inflated overhead selling and -
| chologizing" costs might produce f<z7|
startling results that could be refN<$<
in prices. &/S: