Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1910-09-03
PASSION TO SPEND
BANKER cRITIcisEs CONDUCT or
AMERICAN PEOPLE.
Uses the Almost Universal Desire for
Automobiles as Text From
Which to Preach a Sermon
on Economy.

a national vice but is in fact becom-
ing a national menace In the opin-
Ion OF Joseph T. Talbert, yice-presi-
dent of the National City bank Of New
York Mr. Talbert. who spoke before
the Texas Bankers association. said
that there does not appear any
where to exist in the conduct
of national, municipal or individual
affairs, that appreciation of the eco
nomical and prudent use OF resources
and that adjustment of expenditures
to means and incomes which always
have been found necessary to the
support of prosperity and to the
maintenance Of condition OF
solvency.
The speaker cited the automobile
craze as a case In point. I'VE are
Bquandering on pleasure vehicles an
nually sums of money running into
hundreds of millions of dollars" he
continued THE initial cost of auto
mobiles to American users amounts
to not less than S250,000000 year.
The up-keep and other necessary ex-
penditures, as well as incidentals,
which would not otherwise be In
CURED, amount to at least as much
more This vast sum Is equivalent
In actual economic waste each year
to more than the value Of property
destroyed in the San Francisco fire
perhaps to twice as much. This sum,
as large as 1t is, does not include the
whole economic loss growing out of
/ this single item of indulgence. The
thousands Of young and able-bodied
men employed In manufacturing ma
chimes and In running and caring for
cars, are all withdrawn from produc-
tive usefulness; they become consu-
mers of our diminishing surplus pro-
ducts and constitute an added bur
den to the producers. The economic
influence of this withdrawal from the
producing and addition to the con-
Stunning class, is bound to be mani
tested In tendency to higher prices.
It's effect already must be consider
able and is comparable only to the
maintenance of an enormous stand
ing army.
Thousands upon thousands of our
people. frenzied by desire for pleas
ure and crazed by passion to spend.
have mortgaged their homes, pledged
their life insurance policies. with
drawn their hard-earned savings
from banks to buy automobiles; and
have thereby converted their modest
assets into expanding and devouring
liabilities. The spectacle is astound-
Ing.
"In the matter OF individual ex-
penditures 1t is the fashion now to be
extravagant to- the point of wasteful-
ness, and the fashion is running riot
Individual thrift is considered not
merely misery boarding, but 1t is
looked upon as vice and thing to
be despised 1t is said that this is
J wealth, as wealth goes now, may no
} longer be accumulated by the
tslow process of savings and econ
omies This may be true If we shall
measure wealth only by billions or
hundreds of millions, but, just as
surely as there ever existed virtue In
economy, OF contentment and indie
pendence in frugality. they are there
today, and just as surely as individu-
al and national extravaganza ever
led to a day of reckoning they are
: doing so today. Among nations, and
: among individuals. permanent wealth
and material progress are the results
not so much of natural resources
as they are the products OF economy
and thrift; not alone economy in the
arts of production, but economy of
use.
The maintenance of the present
high level OF prices is dependent upon
the sustained purchasing power OF
the individual which in turn depends
very largely. If not wholly. upon the
expansion of credit. Herein lies one
. OF the chief elements of weakness and
danger in the situation.
IF the banks may by increasing
loans create credits, which In turn
create purchasing power and a sus-
tanned demand for high-priced goods
thereby still further advancing prices
in the benefits of which all classes
, share except those who possess fixed
incomes, 1t may be asked why this Is
not good: why not continue to pro
mote the general ability to spend
why not continue giving to each In
dividual an amount of enjoyment
luxury and pleasure unknown before
particularly when all this may be &C
complished by merely increasing
loans? The simple answer is that Il
cannot be done because in the long
run every act of wastefulness and
9 every item of extravaganza must be
4 paid for to the last farthing; every
item consumed must be earned"
Mr.. Talbert also discussed the dan
. ger of the country losing its grea
, trade balance and of adding an ad
verse trade balance to the other debit
items which run against this country
to the extent OF hundreds OF million.
OF dollars year. Mr.. Talbert esti
mated these items at total OF 5000.
900. 900. including s200.Oo0,0o0 spent
~ Ap,art0op trova1aro