Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-10-12
SHAW TO BANKERS
Continued from First Psge)

years ago, but we carry in our own ships
only one-third as many gross tons as forty
couraged every interest but our merchant
marine, and every protected interest has
nourished. We have every facility for In,
ternational commerce except International
merchants, international bankers and an
international merchant marine. Shall we
not have these am NOT u rsst s POI SUP Of
methods. If we will but take advantage OF
our opportunities we will send these prod
ucts OF farm and factory under every sky
and into every port and make our financial
centers the clearing houses of at least
fraction of the worlds trade.
Secretary Shaw was forced to acknowl-
edge a rousing reception at the conclusion
of his remarks.
The report of the treasurer was sub
mitted and showed receipts and disburse-
ments of S2S6,125 and balance on hand of
sl42,6H
The report of the standing protective COM
mite then was read.
The report of the executive committee was
partly received by the convention, but its
reading was suspended in order that Frank
A. VANDERBILT might address the assemblage.
Address by VanderIip.
Mr.. Vanderlip said that greatly increased
income, diminishing liabilities and the pro-
vision of ample working capital had worked
marves in the way of prosperity for the
agricultural communities during recent
years. In the same time similar conditions
had developed in the industrial field and
narrowness of outlook and lack of CO.
ordination which led to the wasteful dupli-
cation of plants and vast expenditure
of capital had given way to more intelligent
mana cement. In the earlier stages, he
said, many of these combinations of in
dustries which had been swept together
/
| erly open to criticism. He believed. how
ever that evidence has accumulated to
prove that the men who had formed these
great corporations had shown true wisdom
and that the improvement already fore
| Swallowed in income accounts and balance
sheets was but an indication of what yet
| may come He called attention TO the ne
! cessity of ceaselessly prosecuting the strug-
| gle for foreign markets and said he be-
| lieved increasing opposition in the way of
duties would be met after each succeeding
meeting of the continental parliaments.
The ease with which the financial world
withstood the strain of war which cost
! the combatant ma tions s., o00. 900. Mr..
| Vanderlip said, he believed was due to the
greatly increased production of gold in
recent years. To this increased production
he also gave the credit for the recovery
from Industrial depression during the past
three years. At the same time he expressed
| the belief that in this very increase there
was possible future disturbance of values.
Should the present rate of production con-
| tinue he believed the volume of money in
the world would be doubled in twenty
years. with the result that prices of many
commodities would be greatly increased
possibly doubled.
Hard on Fixed Incomes.
While the increase in the supply of money
| would tend to advance the price of real
property, however, the price of an obliga-
ton repayable in money would not ad-
vance. Thus all persons having fixed in
come, persons receiving a fixed salary OF
wage-earners generally would be at dis
advantage, for their incomes would not tend
to increase as rapidly as the purchasing
power of their incomes decreased.
He believed, however, that the theory OF
the classic economists that with the doub-
ling of the gold stock would come doub.
ling of prices, would not hold entirely
good. Such a result, he thought. would be-
prevented by the exploitation of virgin
fields of development, such as followed tn,
discovery of great quantities of gold il
Mexico, Peru, California and Australia, anC
that the next lew years would witness thu
expansion of the field of commercial enter
prise into many new places.
He declared the outlook at the presen
time TO be very bright. but gave warning
that almost as surely there were danger
lurking in the situation Should a stool
/ market speculation start from the presen
high level OF prices in the face of the ex
traordinary demand for capital and mone
which crops and business alike are max
ing" said he, 1.-The result might easily b
I temporary disaster. Although there ma
E be many favorable features to the outloo
I II is no time for prudence TO be cast to tn
wind; no time for speculative commitment
E which would yield disaster If temporary re
verses came; no time for laxness in any @
the forms OF business prudence and cor
servatism."
: MIR. and Mrs. shaw Receive.
2 delightful feature of the entertain
u ment provided for the delegates and the
ladies was the reception given tonight b
Secretary of the Treasury and Mrs. Sha
n at the Arlington hotel. The Teceptio
z rooms were tastefully decorated with plar'
E and cut flowers and band stationed
the alcove played during the evening. Abol
5000 persons attended the reception an
were introduced to Secretary and Mr.
= Shaw, who We're assisted in receiving
n Assistant Secretary and Mrs. Taylor, A
sistant Secretary and Mrs. Keep, Treasur,
Treat, Comptroller and Mrs. Ridgeley,