Evening star., 1931-06-27
CALM ACTION Will
BRING PROSPERITY
West Virginia Bankers Told
How to Play Part in Busi-
ness Upturn.
Special Dispatch to The star.


WHITE SULPHUR SPRINGS, w.
Va, June 27.-Suggesting the surprise
with which a hypothetical visitor
from Mars would greet the incongru-
Gus situation faced by the United
States wherein want on the part OF
the populsce is blamed by many upon
overproduction, John E. Rovensky,
vice chairman OF the Bank of America
N. A.. addressing the annual conven-
tion of the West Virginia Bankers As
sociation, drew vivid attention to the
intricacieS of our modern economic
machine. The Martian would discover
that the country is experiencing both
want and plenty at one and the same
time. Discussing the complexities OF
our economic scheme, Mr.. Rovensky
said that each factional panaceist
wants somebody to push forward his
particular wheels and is quite tmpa-
tient when told that any attempt IN
that direction simply puts the machine
further out Of adjustment.
Capital OveremphasIzed.
"The economists call our present
system the capitalistic system" said
Mr.. Rovensky. THAT is a misnomer
and grossly overemphaSizes the impor-
tance of the part played by capital in
our present system. I should much
system. This would properly distin-
guish it from the socialistic, commu-
nistic, etc, and would also call atten-
ton to the fact that many Of its de-
fects are the results of its blessings
and that the remedy would be worse
than the disease. Many lists are like
the child that wants to kill the ny
that has alighted on her sleeping
daddy's head by hitting 1t with a
hammer"
Contrasting the old manorial sys-
tenn, under which the average man
was utterly bound, with the present.
day "individualistic" system, under
which any man is permitted to follow
his own plans unless and until he tres
passes upon the rights of his neighbor
to do likewise, Mr.. RovenSky expressed
the belief that the latter state was
preferable even though 1t brought
periodic waves of depression. whereas
under the former system hard times
were viewed as acts Of God, directly
traceable to Nature or war.
Lauds Hoover Proposal.
"You cannot readjust the delicate
and complicated mechanism of the in
dividualistic system by banging away
with a sledge hammer at one OF its
parts" he added. The workings of
human psychology caused a curtail-
ment of buying and the same work
again and revive it. We have been
travelling for the past six months
through the bottom Of the valley OF
this depression. This bottom has had
some rises and some declines, but the
change in the average level has been
small 1t is not excessive optimism to
expect that the end is in sight and
that we may find ourselves on the up
grade some time this Fall.
President Hoover's proposal to post
pone European war debts for one year
is excellent. 1t will do much to alle-
viate political and social stress abroad
and thus remove one Of the obstacles
that have stood in the way Of return
ing prosperity. It has substantial
merit and its psychological effect both
here and abroad Is immense. Let us
not allow our hopes to run away with
us. I do not believe q sudden return
of pronounced business activity is
probable When the upturn does come
1t is not likely to be abrupt or free
from periodic recessionS. The ailment
of the past two years was too serious
TO be quickly overcome. 1t Is far more
likely that the recovery will be slow,
halting and at times backsliding. But
the expectation that a genuine, lasting
improvement in general business how
ever, slight, will come before the end
of the year would seem to be justified
by present indications.
How Prosperity VIII Come.
ITO help bring this about, do not
believe any of the offered panaceas
would be useful Quite the contrary
they would be disturbing and harmful
The only plan that I urge upon you
is that, having been unreasoning op-
timists in 1929. you do not permit
yourselves to become unreaSoning pes
simists in 1881. Take stock of your
country; look back over its wonderful
/ record and then, in a COOL calm,
rational manner, proceed in an orderly
manner with your business. And when
you all do that, prosperity will be
here"