Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-05-09
Sees No Danger Of Imitation
Period Or Collapse-Must
Not Judge By Pre-War
Figures - Unparalleled
Growth In Industry And
Commerce And Consequent
Ability To Consume-Out-
lines Four Lines Of Defence
To Safeguard Prosperity

New York, May S-The prosperity
America is snow enjoying can be
made permanent if the business
men of the nation exercise conf
dence and caution rather than IT,
Nudity, Herbert Hoover, Secretary
Of Commerce. said tonight before
the Chamber of Commerce of the
United States in annual convention.
He declared the present business
health was by no means an augury
of impending collapse.
His address was made at the Hip
podrome after Julius II. Barnes,
president, had outlined the Cham
ber's program for settling domestic
and international problems; Rata
Fujiyama, president of the National
Federation of Chambers Of Com
merce of Japan, had predicted a
future of friendly and cooperative
amity between this nation and his
own; and Representative Albert
Johnson of Washington. chairman
of the House Committee on 1mmi-
grafton and Naturalization. mac
forecast the further RESTRICTION oI
immigration by the next congress.
During the last few weeks there
has been a distinct note of caution
at our rapid induEtrial recovery.
MIR. Hoover said. II have shared In
this: but some have gone so far as
to fear that we are entering a perloo
of imitation or danger of collapse.
Caution is the greatest safeguard
to our continued prosperity. Dut
caution need not be timidlty nor eN-
elusive of confidence and courage.
I'VE have no need to go into a
period of imitation. We are undoupt-
edly in Il plane of prosperity. ana
we wish to hang on to our prosper
ity.
I'VE must not Judge the state OF
business activity by pre-war figures
but by a hugely increased base. we
must not be frightened when output
of steel or textiles or automoblles'
lumber, corn or hogs, or our car
loadings amount to figures in excess
of those that would be implied
alone in a normal growth of popu-
lation. There has been in the past
decade an unparalleled growth OF
orr industrial and commercial efii-
cheney and our consequent aDlllty u
consume =,
"Outsile of a very few commodl-
ties there has been a steady ana
rapid movement of all goods from
raw material to the hands OF the
consumer and consumption 10 III
pace with production. There have
been no apparent large accumula-
tons of goods.
There are very definite diner
ences in our present economic posi-
ton in the business cycle as com !
pared with the situation prior 10
the collapse in 1920. The govern
ment index shows wholesale prices
are today about 80 per cent below
the crest at that time. This index
shows an increase in wholesale
prices of six per cent in the last nine
months contrasted with rise OF
20 per cent in the nine months prior
to the collapse in the 1920 boom.
Increases in prices are necessary
accompaniment of business recovery.
They are tho vital stmulant to pro-
duction. They do not mean imitation
unless they continue to rise after full
production is attained or unless they
arc the result of speculation"
Four lines of defense are available.
said Mr. Hoover. and behind them
prosperity can be entrenched indefi-
nitely First the Willingness Of our
people to save their enlarged earn
iags. to resist extravaganza and waste.
to give full individual eXertion.'
In the second line he placed the in
dividual business man. with his well
developed sense of caution and resist
ance to the will-o-wisp of high prices
and overexpansion and circulation
Because the danger point arises
when there is an over-ordering or
goods" which ultimately cripples the
credit machinery Of the country. Mr..
Hoover would place credit men and
bankers in the third line.
And in the fourth line. the most i'm
pregnable line of all. would be en-
trenched the factor which. Mr.. Hoover
said. would be sufficient alone to de-
fend prosperity against overthrow
general comprehension and unity of &C
ton in broad phases of commercial
strategy.
\ report OF the American commits
sion recommended an additional two
per cent. of inning ants on selective
basis over the number provided in the
present per cent. law. to meet the
existing labor shortage. The addition
al per cent, it was pointed out. would
add 1886 immigrants to the total
number now admissible.
Frank Hines. director OF the United
States Veterans Bureau. appealed for
aid in employing the $4,000 incapaci-
tated veterans now undergoing treat