Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-29
MARSHALL ST|RS
FINANC|ERS' IRE
Vice Presidents Attack on Bus
mess Scare Brings Demand
for Policy.
BY 3. c. FORBES.

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, 600 was
waiting to be invested" a flnancier had
told him in Washington.
What are you waiting for?" he mad
asked.
We're waiting to see what congress Is
aoinq to do,' was the reply.
Then followed the tIrade quoted in the
opening paragraph.
Wei, now, was it al awful crime to
confess that money was not TO be In
vested until the new governments course
could be dscerned7 Suppose you owned
S 100000: would you not act cautiously?
Would you not be inclined to wait and
see whether the investments you con-
templated buying were to be affected by
radical legislation?
II you had seen-as this fnancler and
his 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-
utionary banking legislation would be
forced through congress, and that both
foreiqn and home demands for capital in
a money market already taut as a drum
would you, under such circumstances,
feel you deserved abuse If you confessed
YOU preferred to hold on to your cash
until conditions became d little less I'M
settled?
This country's prosperity is on too
solid basis TO be easily scared" was an
other Of MIR. MarshaIrs 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 neck deep In finance
and business:
A banker;
"Money-IlquId moneys scarcer to-
day than II 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-
ous Here we have to face huge Dor
rowing for local subways, constantly
increasing state and municipal applica-
tons, big Pennsylvania issue, an
other from New York Central probable
financing by the Hartman roads and a
host Of other corporations. II Wash
0aton proposes anything as crazy as
the guarantee Of national bank depos-
rs then may heaven help US"
A fnacler Interested in railroads.
The railroads are being hit on both
cheeks Directors no longer run a
rauroad-the interstate commerce COM
mission issues peremptory orders from
above and labor makes equally peremp-
tory demands from below, with an &C
companying threat Of strike.
Now il looks as II a railroad can not
call It's terminals its own. Apparently
any governmental body can order II 10
open It's doors TO every competitor that
may come along. The qravest railroad
problem IS 70 be terminal facilities, and
II a road Is 10 be deprived Of the fruit
uf is enterprise In spending millions
for such facilities, what will be the final
outcome?
Who will pull chestnuts out Of the
fire II anybody is free to eat them? We
are IN danger Of reaching a deadlock
IN railrosding in this country.
An economist Of note:
The eStravagance of our federal, our
state and our municipal governments is
appalling. The increase in taxation
during the last ten years passes reali-
NAN'N' hiAiEaa JOA didiy[C AlAN 'bN'So'
So much capital Is being withdrawn
from business channels that an over
straning of credit is threatened.
4 stock exchange member:
Our business has already been nearly
ruined and now Albany proposes 70
lay it in a coffin.
How goes il abroad? There is a 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 a tightness in the
money market and the gilt edged stock
markets which is without parallel since
1907. During the past few weeks we
have mad in England one reminder aft
or another that the task of placing
good low interest bearing securities is
extraordinarily difficult
Iu Austria Hungary almost fabulous
rates have been paid for short-term ac-
s1mmodation, and German government
9erations in the loan market have been
extremely disappointing In the day
S-day market for loans the rate here
has risen to over 3 per cent, the three
months discount rate has been nearly
~ 60 the Bank of Englands minimum,
and there is a feeling in the air that /
caution will be needed if bankers and :
merchants are to avoid serious diff Z
Cuties
PaIpably the present is no time to mock
INVESTORS who are manifesting timidity.
IVY own view Is that many influential
bankers are more acutely alarmed than
t0e situation warrants. Some of them
forget that II they cry MAD dog" they
may easily start a stampede.
Whether Vice President MsrshalIs
language is calculated TO aIlay fear is
open TO question. You can not. by any
amount Of threatening, cause a man 10
st1p feeling afraid. Elaboration is some F.
times more effective than eScoration. |
Mr. S''-on set the example by bringing |
m the 5s!lows in a now famous speech. I
N- Marshall has used words almost as
strong. But is such an attitude likely 70 /
n-t heart into tim;d investors
suppose. instead Of further threaten /
g. the heads of our government proceed |
q let the business world know Just what Z
q eEpect-not beautiful generallties, but I
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