Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1910-07-15
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.


ion of Joseph T. Talbert, vice-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 case In point I'VE are
squandering 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 $25O.000,00o 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
CT Of In I1lo
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cars, are all withdrawn from produc-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 consul
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 a 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
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 it 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 it is
looked upon as a vice and a thing to
be despised, 1t is said that this is
not a day of small things, and that
wealth, as wealth goes now, may no
longer be accumulated by the
! slow 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 o.
use.
! The maintenance of the presen
high level of prices is dependent upor
the sustained purchasing power o
the individual which in turn depends
very largely, If not wholly, upon tn,
expansion of credit Herein lies on,
of the chief elements of weakness ant
danger in the situation.
IF the banks may by increasin,
loans create credits, which In turn
create purchasing power and sus
tanned demand for high-priced good
thereby still further advancing price
In the benefits of which all classe
share except those who possess fixet
incomes, it may be asked why this
not good; why not continue to pre-
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 az
complished by merely increasin
loans? The simple answer is that
cannot be done because in the Ion
run every act of wastefulness an
every item of extravaganza must b
paid for to the last farthing; ever
item consumed must be earned"
Mr.. Talbert also discussed the dar
ger of the country losing its gres
trade balance and of adding an aC
verse trade balance to the other deb
items which run against this countr
to the extent of hundreds of million
of dollars a year. Mr. Talbert est
i mated these items or a total &c Sooo