Heppner gazette. [volume] (Heppner, Morrow County, Or.) 1892-1912, 1910-07-28
PASSION TO SPEND
BANKER cRlTlcIsEs CONDUCT OF
AMERICAN PEOPLE.
Uses the Almost Universal Desire Tor
Automobiles as a Text From
Which to Preach a Sermon
on Economy.

OF ECOuOHys
Extravaganza has become not only
: national vice but is In fact becom-
ing a national menace In the opin-
ion Of Joseph 7. 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 a 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
| ulODllCb " AnClACdh uoOAo
to not less than $3.50, 100000 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cars, are all withdrawn from produc-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-
suming 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 deyouring
liabilities. The spectacle is astound-
Ing.
I'm 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 miserly boarding, but 1t is
looked upon as a vice and a thing to
be despised. II Is said that this is
not 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 inde-
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
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
of credit Herein lies one
Of the chief elements Of weakness and
danger in the situation.
'Tf 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
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
1ividual an amount of enjoyment.
luxury and pleasure unknown before,
when all this may be ac-
by merely increasing
oans? The simple answer is that 1t
cannot be done because in the long
run every act of wastefulness and
every item of extravaganza must be
paid for to the last farthing; every
TEN consumed must be earned"
Mr.. Talbert also discussed the dan
ger of the country losing its great
rade balance and of adding an ad.
yerse trade balance to the other debit
tens which run against this country
o the extent of hundreds Of millions
II dollars a year. Mr.. Talbert estf.
mated these items at a total of $780,.
100. 900, including 5000, 900, 900 spent
lhrnod NV Amdrfoan froyoIoro