The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-15
MODERN BUSINESS
is DONEON CREDIT
Banks Provide Machinery of
Credit, and Sound System,
Therefore, Is of Vital Impor-
tance-America Only Ma
ton That Has Not Put
1t Oh Firm Basis.
BY HARRY 4. WHEELER.
President Of the Chamber OF Commerce
of the United states OF America.


aine-tenths OF it, The banks provide
the machinery of credit. y sound
banking system. therefore. is Of vital
Importance in a great commercial ma
ton like ours.
Credit enters enormously into mod
ern commerce because OF the large
scale production OF goods long time
ahead Of their consumption. The pair
Of shoes that is made in a New Eng
land factory may not be bought by the
man who is 10 wear them down in
Texas until months after they have
left the factory. The 81 that the man
IN Texas pays the country storekeeper
for the pair OF shoes is in the last
analysis the payment for the manufac-
ture of the shoes in the New England
factory. But the manufacture cannot
wait for mis- money until the SHOES are
sold down in Texas. He must have
money every week to pay the workers
in his factory. he must have funds to
buy his leather and other materials
and to pay ali the various running eS-
penses of mis- plant Neither can those
who handle the shoes from the time
they leave New England until they
are finally purchased by the ultimate
consumers wait for their payment un-
til the money is paid over the counter
IN the stores.
WopderfuI Machinery OF Credit
1t is the banking system that pro-
yides the credit machinery whereby the
dong interval between the production
and consumption OF goods is bridged.
Kansas farmer raises crop OF
wheat in the summer. He sells his
| wheat to country elevator AT the
| nearby railway station The country
Elevator sells the wheat to a big Chi-
caSo elevator The Chicago elevator
sells il TO a Minneapolis miller The
miller ships the -four abroad 10 JOB
Der. who sells it to baker The baker
sells his leaves TO the London house,
wives Through the wonderful ma
chinery of credit 1t is quite possible
{, that the five pence London housewife
pays for a loaf of bread made from
the Kansas wheat is the only money
that passes from hand TO hand in the
whole series of transactions II the
London housewife keeps a bank sc-
count and pays her baker by check.
no money is used I'm the transactions
But all the agents Of production in
This transformation of Kansas whoa.
( into food for an English family Set
! paid for their work through the credit
machinery.
| When the r,achinery OF credit breaks
| down as II has broken down in this
| country repeatedly. because OF vari-
Gus serious evils in our banking sys
| tenn the Industry of the country is
/ strangled. The great commercial ma
! lions OF Europe. realizing how vital TO
/ the conduct OF commerce is the smooth
/ running of the machinery OF credit
J have so perfected their banking sys-
| TENS that they are able 70 keep the
machinery running In good times and
/ in bad times. In England. France and
Germany. business has its ups and
downs just as il has here: they have
! Industrial booms and Industrial depres
| sions. but the credit mac<'nery is so
adjusted to the needs OF business that
il Keeps right on running.
Fair Weather Banking system.
We have a fair weather banking
system. II works all right in good
times but il breaks down just at the
time when it is most needed-in .
! period OF financial distress We need
only 90 back to 1917. for striking
example o. the weakness Of our bank
Ing system The country was pros
porous in that year. We had had. In
fact. nearly a decade OF the most Won
derfu. commercial prosperity ever seen
, in the world But in the course OF
few DAYS ia the fall OF that year the
whole commerce OF the country was
turned upside down. with enormous
/ losses to all classes OF people. AMI cs-
peciafv 20 the millions OF WORKING
people because the banking system
brok.. down. Ii IT, q humilia.inG fact
: .ha- this j. the only great CONNER
cial nation IN the world in which such
A thing could happen. Ths; panics
] yxfu continue 70 occur IN this country
. - roux a. Nc refuse 20 reform our
banl.ng system - no. 20 Be questioned.
The older countries % Europe have
insured themselves against money
Dan.cs. We can do the same.
The ~efor-1 % our panic-cresdinx
! aank.nr system Is surely not cues
zion .ha. should enter into party poll
tfes Tae question is now before Coa-
go. IL s. she duty Of Congress %
discuss this reform without passicn
and without prejudice. and !; - the
duty % every patriotic citizen 70 IN
I form himself a. 30 -, useTiN ~ the
D proposed ierls.ation.
. Nou-PsuI<ss Qu~-tieu-
Banking reform has been DELAYED
FOR years. 10 has been our misfortune
I in MS country that problems relative
; q, bsnkinz and currency have been
made the football o. party politics. The
fzh, Tor sound money vas bitter
usrtisau struggle. That hEhr was Won
/ herags~ -hc wace-ea-ners and wage
paVers o. the country. resiizinE TIE
vial Importance % squarirz or money
s..adard With that Of the rest az the
World. stood together for the Eal6
s.ardard Now that ne have ssuad
nancy. IL IL Just as essential fsat ne
have sound credit 7 believe rat -
can provide a soans crsft system