The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-10-07

attracted more attention than any other
throughout the country was the address
made al the session Of the American
Bankers Association, at Atlantic City,
by n. E. Ingalls,, president Of the Cleve-
land, Cincinnati. Chicago. and ST. Louis.
commonly known as the Big Four" rail-
road, and Of the Merchants National
Bank. Cincinnati. upon the causes AMI
character of the present financial situa-
ton.
Mr. ingalls,, besides being a very aole
and successful railroad man and banker,
has deserved TepUte in our country as
one possessing the gift Of fearless and
iucisive speech. He did not mince his
words at Atlantic City. He told his hear
ers that at least one great trouble in
the land was and had been a general cx-
travagance Of personal expenditure
coupled with a reckless planning OF m-
provement and construction work by
many large corporations without any
thought of where the money for the work
was coming from Obviously more prl-
yaJe and corporate economy was needed.
while a great hope for the future rested
in the fact that 100000 Of new gold
was forced each day into the currency OF
the world" Here. in the words Of L
philosopher and writer Of long ago.
there is much matter for all thinking"
Here is a man who stands IN the front
rank Of the business men Of the country.
who is plainly superior TO most men in his
ability 10 think soundly and speak clearly
on economic questions and who fully rec
ognizes the problems raised by WaslefUI
OUTLAWS of money in the past yet who
still is under the delusi0n that a remedy
for existing difficulties may be found in
further imitation Of the countrys cir
culatng medium.
ingalls, "A Bryan COnvertf
Mr.. ingalls, would doubtless resent. as
a gratuitous aspersion. the charge that hs
was a convert 70 the financial theories OF
William J. Bryan. and yet. whether he IS
aware Of il or not, the pauacea that he
recommends TO the sick man Of Wall
street is Of the sane substance exactly
as the cureau that DIT. Bryan endeav-
ored 10 sell 10 the Western farmers
eleven years ago.
Ii is not important at the present tima
TO enter upon a refutation Of the old
heresy known as the cumulative theory
Of money that is herein substantially.
even II IT is in many instances and be
yond any doubt in the majority Of in
stances unconscioUsIy. advanced. but It
is important that there should not be
allowed TO prevail AT the present or any
other time such tscit and unqualified
I a..
open conflict in the future strengthen
the hands Of professional enemies OF So
ciety and disbeIievers in the rights OF
property
InnHtiOn of Values.
An addition 10 the worlds currency OF
/ 21e9l.G11 a day that IIr. Ingalls, speaks Of.
or even 100000 a day, viii not benefit
our country one whit unless We are en-
abied TO purchase a share Of it by ev-
/ changing for il the fruits Of our national
/ industry and saving. II is, OF course, OBJ
vious that a very large and sudden in
crease or q decrease in the standard unit
/ Of value viii temporarily affect prices:
/ but it is equally manifest that this effect
viii be only temporary-that is TO say.
that high prices cannot be continually
maintained by a continual imitation of the
circulating medium or continually de-
/ pressed from the reverse cause
Bond Owners Suffer.
Ali people who derive their support
from the ownership Of bonds or from any
/ form of fixed income suffer from IL ex-
tremely for reasons that are plain
enough. The ownership Of stock, as Of
/ property having a variable equity. is
not injuriously affected Immediately; but
/ if the property in question is a service
corporation, ike a street or steam rail-
way company. where the charge for the
| service rendered is fixed by custom OF
/ law. the net income OF the property
/ necessarily falls behind. since there are
no ways provided of making up a fnan-
/ ciaI deficiency caused by an enlarged eX-
! pense account
Destruction of Worlds Wealth.
! There has been, through wars and in
other ways, a great destruction of the
wealth OF the world, and the increase in
/ the supply Of gold has been dinused over
an area Of enterprise wider than ever
/ known before in the worlds history.
! Moreover, for the advance in the price Of
grain and foodstuTs, the increased con-
sumption Of these articles. owing to the
/ increase Of the population Of the world
in a more rapid ratio than that of the
worlds wheat production, has been very
/ largely responsible.
/ All that is meant to be here maintained
/ is that if any student Of economic affairs
/ IS convinced as a result Of his own obser-
walton and reflection that the increase IN
the worlds money supply has, for the
/ time being, served TO introduce an arti-
I fetal element into the financial situation;
/ that IL has brought about a harmful and
undue elevation of interest rates, and has
pushed the price of labor so high that
business enterprise is being checked, then
the last remedy ne viii seek 10 apply 10
the trouble is more money since this
| Will only aggrayate existing evils
/ Further, if the general economic con-
/ illusions referred to are TO be adJudged
sound. if it is, indeed, true that the reign
Of high prices in the country has come
! 10 unsettle the cOuntry's business. max
ing il impossible for the manufacturers
TO obtain raw materials at a reasonable
! price enhancing the cost Of living. and
pushing wages to a prepOsterously ele-
waited level, then one of the first things
that should be done is to reduce some
what that high wall of tariff protective
duties that in former days for reasons
| goOd at that time but valid no longer.
the country built around its industries.