The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1914-06-11
Psssimism Is Based on LegisIa-
tive Ghosts Declares Presi-
dent of Gotham Bank
FACTORS ARE OVERLOOKED
Congressional Record Crowding
Out Financial Chronicle, Van
derIip Tells Bankers

New London Conn, June ll.--ln an
address today before the New York
Bankers Association in annual con-
vention here, Frank A. Vanderlip, pres
ident OF the National City Bank of
New York, analysed the business sit
uation of the day, holding that it had
become dependent upon political rath-
er than economic factors.
In part he accepted President Will
sons diagnosis of psychological
trouble in business.
Il believe" he said, that the lack
Of enthusiasm about the future, the
state of pessimism that surrounds
many phases of business, the DISPOSE
tion toward extreme conservatism, the
lack OF new plans for capital cxpendi-
ture for railway Improvement and eX-
tension, for new Industrial conquest,
all have their roots in "A state Of
mind. rather than in the statistics of
actual business data; but | am not
certain that this state of mind is
grounded in unfounded fears, that it is
caused by legislative ghosts, that it is
engendered by baseless apprehension
concerning legislative tendencies and
the trend Of public opinion.
THE obstacles in the way of bus-
ness recovery may perhaps he truly
described as psychological, and still be
u manifestation of sound business
sense in apprehondfng the true mean
ing OF the political- l-economic situa-
ton"
Congress is Guage Of Business.
He described the standards that used
to prevail in the judging of the busi-
ness future-statistics of production
and distribution condition Of the
money market, and of credit crop out
look etc.
Now" he said. "the Congressional
Record Is crowding out of its place of
Importance tho Financial Chronicle.
We watch executive and congression-
al actions rather than the Comptrol-
ler's Abstract to gauge the status or
banking affairs The attitude of mind
of the Interstate Commerce Commits
sion has become more important than
the statistics of railroad traffic. We
read the totals of our foreign trade
To learn the effect OF changed tariff
law, rather than of trade tendencies.
Reports of the attitude of mind of the
Attorney General vie in interest with
the crop predictions of the Secretary
Of Agriculture. investigations by bu-
ieaus, commissions or Congress form
more important feature in gauging the
market outlook than do the plans for
development or expansion formulated
by the executive committees of cor
porations. Plans for development or
expansion Of railroads or business en-
terprises have indeed been heard of but
little. The factors that we have most
ly in mind are how new laws are go-
ing to work. what new laws are next
to be passed.; what is the prospect not
of crops. but Of congressional action.
'If such psychological factors could
be eliminated for a moment and the
old view taken, we would see looming
large the prospect of a great agricul-
tural yield, giving promise in some
directions OF bumper crops now almost
assured.
Would See Better Conditions.
I'VE would see easy money here and
abroad, and although we might argue
that money was easy because of lack
of profitable employment, still its pres
ent ease would promise that there
would be no interference with increas-
h., of in
terest rates.
I'VE would note that we were en-
barked on the trial of a new banking
system, about which-whatever points
of disagreement there might be-there
was the unanimous opinion that its
working would ultimately tend toward
imitation, and therefore that it will for
some time to come be factor likely
TO insure continued easy money.
I'VE would find sound credit condi-
tlons, both in the position of the
banks and in the mercantile COM
munity.
THE Industrial machine of the ma
tion. In short, might be likened to
Great steam engine, running WIN u
load much lighter than its capacity
and ready, upon the turn of n waive
that would let In more steam to re-
spond efficiently to vastly greater re-
quirements.
"A survey of concrete business con-
ditions with such facts and totals as
business statistics show today wou'u,
however, have been sufficient ground
ten years ago to have predicted that
We had straight ahead of us the pos
sibiilty Of n period of great expansion
What he asked Is In the way oil