Only in more production and in new production can the American standard of living be increased and the economy be sound. - Alfred P. Sloan

Some see danger in bigness. They fear the concentration of economic power that it brings with it. That is in a degree true. It simply means, however, that industrial management must expand its horizons of responsibility. It must recognize that it can no longer confine its activities to the mere production of goods and services. It must consider the impact of its operation on the economy as a whole in relation to the social and economic welfare of the entire community. For years I have preached this philosophy. Those charged with great industrial responsibility must become industrial statesmen.

A recovery after a depression is as inevitable as that day follows night. It can not be permanently suppressed. Its vitality is so powerful that it will break down the barriers set up by the most arbitrary dictator. Hence there is developing a new confidence and a new faith in those principles which have formed the the foundation of economic evolution and industrial progress during the last several decades — principles which we have been proud to call "American principles," and for which we have been reared with a wholesome respect. There are still lacking the assurances of a broad and definitely defined opportunity and the elimination of certain unsound economic policies, thus limiting the application of these vital principles we have always known and retarding their ability to accelerate our economic recovery.

In the spring of 1920, found itself, as it appeared at the moment, in a good position. On account of the limitation of automotive production during the war there was a great shortage of cars. Every car that could be produced was produced and could be sold at almost any price. So far as any one could see, there was no reason why that prosperity should not continue for a time at least. I liken our position then to a big ship in the ocean. We were sailing along at full speed, the sun was shining, and there was no cloud in the sky that would indicate an approaching storm. Many of you have, of course, crossed the ocean and you can visualize just that sort of a picture yet what happened? In September of that year, almost over night, values commenced to fall. The liquidation from the inflated prices resulting from the war had set in. Practically all schedules or a large part of them were cancelled. Inventory commenced to roll in, and, before it was realized what was happening, this great ship of ours was in the midst of a terrific storm. As a matter of fact, before control could be obtained General Motors found itself in a position of having to go to its bankers for loans aggregating $80,000,000 and although, as we look at things from today's standpoint, that isn't such a very large amount of money, yet when you must have $80,000,000 and haven't got it, it becomes an enormous sum of money, and if we had not had the confidence and support of the strongest banking interests our ship could never have weathered the storm.