The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-31
NOTE OF WARNING
SOUNDED BY HILL
AND VANDERBILT
CONTINUED From First Pagc.)

(Contllucu from First Pagc)
instead of an ownership OF property
is the main guarantee behind them.
The country Is water-logged with
! bonds. Confidence cannot be restored
until the namo bond has won back
something OF Its old standard And
/ that cannot happen until Issues are
| limited by moderation. confirmed to the
value OF tho security and confirmed
to the margin of safety and tho form
Of credit for which the bond was orig
inally designed.
To Mike Market Safe.
There would he httlo need for tho
blue sky laws II ALI who engage In
your business were bound by code
both moral nnd legal to stamp out NOT
only the obviously wildcat security. but
! every otha' that hes n surplus of pros
3rctus anG Il uehcit or live assets he
alma II. Til, inrcatmcnr marxet can
MT know Il prosperous activity OK
ccpt by fcvcrish stats to be followed
ny still more pronounced rcnctions
until tho immutab!c laws OF credit havo
been generally recognized and respect
ed"
| In the beginning OF his address Mr.
Less than years subsistence stands
between man and starvation. That i
the measure Of his accommodations Six
and n half bushels Of wheat per capitp
I - a low estimate for consumption ana
seed. The 100000 people living, ac-
cording to the census estimate. In the
United States IN 1919. would requir.
63o,5o0.00e bushels to keep their
stonachs ana hclds In condition for Il
1 year That is y little less than the
I CROP OF 1all, and II little more than tire
/ crop OF 1872. subtract our total en-
ports OF domestic wheat and flour FOR
tho last three years from our total
wheat production and the average sur
plus retained for home consumption ia
less than 900. 100000 bushels per annum
What is true Of our bread supply
Z is more than true OF most other neccs-
sarics That "c consume and produce.
\ We could live for a few months only
\ on our savings lmucnCc AS seems
I the total az accumulated wealth. most
I of II Is not available for consumption.
/ Even tn" incorl. from * must be trans
formed into things 10 cat and drink
anu wear and tools 10 work with. into
capital for future product without
which not only the machinery ~ in
dustry. but tho human machine itself
/ would presently cease to operate. ana
( = dead world remain the monument
OF defeat In that economic battle which
man has wagcd with nature from the
7 beginning"
\ memorial 10 the Interstate Com
uorce Commission urging the com
mission 10 acccdc To the application
OF railroads cast OF the Mississippi for
an Increase III freight rates was unan-
imously adopted by tho convention to-
day Tn" memorial represents that
The roads cannot make improvements
/ unless their incomes are increased
Attncks Currency niiI.
George NJ reynolds president or
ne Continental ana Commercial Bank
= OF Chicago. attacked the pending cur
rency hill az likely to have an adverse
effect III business
4 Il attack specifically" he said, tho
/ enforced entranc" OF national banks
! into tho system and 1T the sam" time
denying them representation on the
board Of control
In tho event this bin should be en-
acted, and my prediction that sufficient
banks 10 make II effective would not
enter the system should come true.
what would happen?
The penalty 10 the national banks
would he the enforced liquidation OF
their business within one Year. This
would leave on tho banks hands s73o
100000 of per cent United States
bonds worth enthusiastically $500. 300 900.
sut what would be the effect on bust
. ness
I'm the liquidation Of national
bank one OF the tirst things necessary
is for tho bank TO deposit with the
Treasurer of the United states lawful
money TO retire its circulating notes
on June !. 1918, the lawful money In
the 1000 odd national banks In the
country was $4,000, 600.
What would happn In the bust
ness world II thcs" 900 national banks
were To attempt TO deposit. say $3.50
900 600. or 50 per cent OF their entire
lawful money TO retire their circula-
ton, thus contracting tho lawful
money 10 tho extent of three quarters
OF n billion dollars?
"Wherc under the sun could the
banks 40 10 s"oure that vast sum OF
money and falling to secure il, what
| would become Of our organization OF
credit and If that should fall, who IN
the whole country would be immune
from its blighting effect