Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-11-14

ltAs.,gss GAN; NOT LOAN WHEN
MONEY . MOST NEEDED
dangerous situation Aggravated BY
! prssssnt Ant;auatsd and Hestriet'vs
- spsaks Dssors Trans Missis-
sips, Commercial, Congress Other
Addesssss Made.

Kansas City, Nov. 14.-secretary OF
iNar Henry L. stimson and former
limited states Senator Aldrich. char
han. Of the monetary commission. we're
~ principle speakers at the opening
essioa Of the twenty-second session OF
tdhe Trans Mississippi commercial con-
2kress. which began here today.
Secretary stimson discussed affairs
ofshiss department and Senator Aldrich
outlined his ideas Of currency reform
y under the head Of Currency Lestsla-
~ q Ssss.ss: hundred sdeleEates were pres
snt when Arthur 6. Trumbo. Of Musko-
see,. Chairman Of the executive commit
kee: raped the convention to order
with the declaration that the "conclus-
IONS 6fs congress should be morally
binding upon every western congress
man and senator at Washington.
After addresses Of welcome by United
Rstates Senator William ]. Stone and
Eovernor Herbert Hadley. the presi-
Ndent. Col. Fred w. Fleming, OF Kansas
|YCjty, delivered his address. reviewing
the work Of the congress since Its or
xanization.
\ psfsess Of Banking System.
VI BANKING Control" was the subject
OF m address by ]. Lawrence Laugh
lin, of Chicago University. and he
pointed out many defects in the pres
ent system. He said in part:
.eFor years human organism may
20 on with poison within its tissues
suffering constantly and grievously
without the true cause being definite
ly determined. For decades our busi-
mass community has been suffering
enormous losses from an unhealthy
condftion ofS our banking and credit
/ system: but now we are beginning 70
ioca4e..the disease. We notice that
other countries are free from most o.
{ ~ 3ff4auenf paroxysms OF credit with
which We are. afflicted. Then, we no
N tice that when reversal Of business
: comes TO us. how peculiarly the power
81 our banks to lend to the business
public is crippled by the rigidity OF
our unregulated credit system. 1t 10
to the interest Of the borrowing pub
iic-the producer. the jobber. the re-
taller. and their employees vino depend
on prosperity for employment-to find
remedy for this rigidity and for its
losses. For q long time we have been
thinking that this rigidity was due to
the inelasticity Of our bank mote
issues: and there Is much in that be-
lief. But the difficulty with the note
issues IL only q manifestation of some
cause deeper down. which must be
reached before we can apply the eff
fectiye remedy. Without doubt the
! fundamental difficulty IL to be found
In the rigldity and inelasticity Of our
organization of credit. Correct that.
and the correction of the inelasticity OF
our note circulation will go with it. Let
me make this clear.
Dusiness Must Borrow.
sThAs4bustt1ess world regularly de-
ponds upon an element Of borrowed
capital In conducting It's legimate
work ,of producing and exchanging the
commOfities OF general consumption.
when exceptional demands for cash
/ are made In the autumn for moving
cotton and grain, there is an increase
in the domand on the banks for loans,
ana the cash reserves decline. Like
Wise. but on . greater scale. when
commercial collapse comes. the pres
cure on the banks to meet exceptional
( demands, either for extentions or new
loans, - appalling and dangerous.
The producer. who has borrowed to
pay for Ms materials or pay roll, can
mot mest hiss debt. II he can not collect
4 from the jobh~r: the jobber. wAo has
borrowed 10 pay for the finished goods.
Z can not m1st his note. II he can not
collect from the retailer: ana the re-
4 t6ilseS Who has borrowed to pay the
tobEof. can not meet his note, II goods
afo not salable. Hence. II loans are
bt6ppo6. tn whole machinery Of ex-