The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-10-16
the WARMING Of
BANKERvA||NDE..R|L|P.
His Address Of 1902 and Ills Re-
cent Uttcranccs Are
Compared.
CONDITIONS NOT CREATED E:
The Decline Of Stocks Not III Any
Way Due to What He
CONDITIONS NOT CREATED ca | E: },
Especial 70 The mca-lolspntci.)

{. Especial 10 Inc .4IlmcE-lJlspntcf.) "
N1OW YORK, October 15-Persons who
lave taken the palns to COMPARE the
conservative note, warning" sounded
by Mr.. vnndcrlip, vice. presidcnt OF the
National CITY Bank, at Wilmington. n.
c., October 81. 1892, with the address
delivered before the American I3nnkera
u Association OF Wednesday last, find some
points OF similarity between the two,
and some striking differences The CHIEF
Of the latter Is that the earlier address
4 Is rcpctc IN statistical material. with
facts and figures marshnled In strong
array, TO support the position he then
held, while the recent delivery contains
practically nothing Of this kind.
Wall Street has gotten 80 In the habit
OF thinking that the first Of Mr.. Wander
3 lips influential utternnccs, was henrlsni
that tho speculative element sccns 70
have entirely forgotten that IT contain
ed much that, was optimistic on the
4 country. Similarly Wall Street mas q p
parcntly overlooked the fact that IN me
address, delivered before the Illinois
state Bankers Association. ut st. Louis,
n wear ago. which was proclaimed rs the
i bullish pronounc!amento. Of the So
called "standard OIL" party Mr.. Van
dcrlp Issued some words OF caution 50
materially differing from thobe useu
Mt washington last week.
No Bearing On Stocks.
In fact, n year ago. after stating his
belief that commercial depression was
at an end, and business revival Was az
hand J, he specifically warned his AUDITORS AUDITORS
tbat his words had no bearing upon
siock prices then The moderate adj
vance, no thought. had discounted the
Improvement probably more than DIS
counted the mprovernent-then IN slsH''
and he cautioned against n speculative
movement in stocks. as the, one th.lS
II which might defeat industrial rlvlVal.
what is the sense OF Ignoring facts any
e conditions, wherein Is tho desirablllty OF
lIvinc, in d fools paradise 1t was not
n. an enemy, but as q friend OF inc
situation that Mr. vanderlip spoke, pre-
ciscly rs he spoke In 1907, NJ W iiiH rli
4 ton. 5s3. II, .h ,r+c ryal
following this latter address--ano tne ;,
nst = asurcdly did declIne-it was not
oa q result OF his utterance but Simply
ns result OF the conditions, which many
ether persons had noted and pointed out
heforc him, but which none had presented
M forclbly as he, or at least no one whose
words carried such weight. t,
ss Conditions Not Created.
So 1t Is at the present time. Mr.. Van
arr,in bns not created the conditions he
B men toned; neither those which are favor
ablc. and nc dwelt upon these ut leng1n'
nor those which are unfavorable, which
hi mentioned but briefly. The results OF
the two comparative periods. using inc
less sensational figures In 1902 that were
ms between 1885 and 1902. national bank
reserves Increased sl5,c0,ooO: credit Ia
bilties increased l,S0l. 1900; loans gong
xyf,l1o hatWpen INV
"a. 1902. and August q. 1906, there has been
nm increase OF s95. 1885, 900 III lawful money
holdings and an increase Of $3.50, 100000 in
deposit liabilities, or credits granted
largely against stock collateral worked
IN to high figures, and figuring ms basis
for the great loan expansion. There are
OF course, some wide points OF difference
between October, 1902, and October, 1900
but they arc not so wide AS one imagines
when the money and banking situation Is
subjected TO the same tests and COM
PARSONS.
Stocks More Fluid.
Unnucstionablv stocks arc more nuld
than at tho earlier date. but credit can
become involved just as well by Initiating
speculative stocks as by locking up ca pi-
tai in Industrial promotions. Industrial
prosperity has little to do with them.
Under any circumstances Mr.. Vnndcrlip's
caution, no matter how intended, Is
timely. In 1902 he said:
I'VE have tho choice Of one OF two
thIngs-ether to practice wise discretion
or TO so on borrowing OF the future until
we are brought up against wall. That
would servo very well now. but It Is Just
ms effective to say: Never was there a
better time to preach conservatism: never
perhaps was 1t easier to be carried away
b,,s pf IN nhvtOlIS feltlraS ~
pcrity ana to forget some OF the dangers
which In the end will be quite as potent
in shaping the ultimate result: q treo
never quite grows to heaven"
--x,vvy- @AYHt5fs