Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-28
NARSHALLSTIRS
F|NANCIERS' IRE
Vice Presidents Attack on Bus
mess Scare Brings Demand
for Policy.
BY 3. c, FORBES.

showed down the threats of the men who
owned it. This business scare has got to
stop and stop soon. This country won't
stand for it,"
Thus spoke the vice president of the Uni
ted States in Boston. The $4,000, 900 was
waiting to be invested" a financler had
told him in Washington.
What are you waiting for?" he had
asked.
Were waiting to see what congress is
going to do" was the reply.
Then followed the TRADE quoted in the
opening paragraph.
Well, now, was it an awful crime TO
confess that money was not to be in
vested until the new governments course
could be discerned? Suppose you owned
81 900 600; would you not act cautiousy7
Would you not be inclined to walt and
see whether the investments you con-
tempIated buying were to be affected by
radical legislation?
II you had seen-as this financler and
MS colleagues have seen to their sor-
row-the very best investments sink low
er and lower without sign of permanent
recovery, and had been given to under
stand that deep cuts would be made in
tariffs that railroads would be subjected
especially by states) to further burden
some and costly harassments, that reVo-
Iutionary banking legislation would be
forced through congress, and that both
foreign and home demands for capital in
a money market already taut as drum
would you, under such circumstances,
feel you deserved abuse If you confessed
you preferred to hold on to your cash
until conditions became a little less IN
settled?
This country's prosperity is on too
solid a basis to be easily scared" was an
other of Mr.. MarshalPs pointed declara-
tons. Let us hope. so. But can tell
him that a good many men Of business
ARE scared. Why? Read these various
statements from men neek-deep in finance
and business
A banker:
"Money-Ilquid money-s scarcer 10
day than it has been at this season In
twenty years. Europe is even worse
than we are. The demands for funds
from governments alone Will be enorm-
Gus. Here we have to face huge Dor
rowing for local subways, constantly
increasing state and municipal applica-
tons, a big Pennsylvania issue, an
other from New York Central, probable
financing by the Hartman roads and a
host of other corporations, II Wash
tngton proposes anything as crazy as
the guarantee of national bank depos
It's then may heaven help us"
A fnacer interested in railroads;
The railroads are being hit on both
cheeks. Directors no longer run a
railroad-the Interstate commerce com
mission issues peremptory orders from
above and labor makes equally peremp-
f0ru dapoabds from hRIoM. with an
companying threat of strike.
Now It looks as II a railroad can not
call its terminals its own. Apparently
any governmental body can order it to
open its doors TO every competitor that
may come along. The graVest railPad
problem Is to be terminal facilities, and
II a road is to be deprived of the fruit
Of its enterprise in spending millions
for such facilities, what will be the final
outcome?
Who will pull chestnuts out of the
fire if anybody is free to eat them? We
are in danger of reaching a deadlock
In railrosdlng in this country.
An economist of note;
The extravaganza of our federal, our
state and our municipal governments is
appalling. The increase in taxation
during the last ten years passes reali-
cation unless you analyze the figures.
So much capital is being withdrawn
from business channels that an over
strainng of credit is threatened.
stock exchange members
Our business has already been nearly
ruined, and now Albany proposes to
lay it in a coffin.
How goes il abroad? There is scare
there too-a worse one than has come to
the surface here. The conservative Lon
ion Economist, just to hand, says:
The long-continued activity in trade
and the outbreak of war in Europe have
combined to cause tightness in the
money market ana the gilt-edged stock
markets which is without parallel since
1907. During the past few weeks we
have had in England one reminder aft
er another that the task of placing
good low interest bearing securities is
Extraordinarily difficult.
In Austria Hungary almost fabulous
rates have been paid for shOrt-term ac-
cOmmodation, and German government
operations in the loan market have been
extremely disappointing. In the day
to-day market for loans the rate here
has risen to over 5 per cent; the three
months discount rate has been nearly
up TO the Bank of England's minimum.
and there is a feeling in the air that
caution will be needed if bankers and
merchants are to avoid serious diff
culties
Palpably the present is no time to mock
investors who are manifestng timdity,
MY own view is that many influential
bankers are more acutey alarmed than
the situation warrants. Some Of them
forget that if they cry Mad dog!' they
may easily start a stampede.
Whether Vice President MarshalFs
snguage is calculated to aIIay fear is
open to question. You can not, by any
mount of threatening, cause man to
stop feeling afraid. Elaboration is some
times more effective than eScoraton.
Mr. Wilson set the example by bringing
In the gallows In d now famous speech.
Hr. Marshall has used words almost as
strong. But is such an attitude likely to
put heart into timd investors?
Suppose, instead of further threaten
1J, the heads of our government proceed
H.