New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-12
Vanderlip Asserts Future
VIII Be Dominated by
LaWmaking.
DEPRESSION NOT A
GHOST OF FANCY
Sees Need of Rest for Nation to
Digest Legislation in Speech
to Bankers.

Bank Of New York made the most I'M
portant address to-day before the New
York Bankers Association in annual con-
vention here. Although he did not men
ton President Wilson by name nor REFER
directly TO his recent statement on ousl-
ness. Mr. Vandcrlip's talk on Business
and Politics" was. in a measure. reply
to Mr.. Wilson.
Mr.. Vanderlip accepted. in part. MT.
wilson's expressed belief that there Is no
real reason why business IN America at
this moment should be anything OUT
booming and that the only obstruction 10
prosperity IS a psychological one. But the
banker stated that IT is in politics ana not
elsewhere the foundation for this condi-
.ion OF mind must be sought, and that the
nresent fear is not without sound basis
We are told" Ae said, that the
,roubla OF business is psychological In
= sense I believe that the statement Is
correct I believe that the lack OF en-
thusiasm about the future, the state ol
pessinism that surrounds many phases
Of business, the disposition toward eA-
treme conservatism. the lack OF new pia"s
for CAPITAL expenditure for railway I'M
movement and extension. for new lnous-
trial conquest, all have their roots IN
state Of mind rather than In the sta'ls-
tics Of actual business data. But am
not certain that this state OF nina Is
grounded on unfounded fears, that II Is
caused by legislative ghosts, that IL IL en-
cendered by baseless apprehension con-
corning legislative tendencies ana 'he
trend Of public opinion.
The obstacles in the way OF business
recovery may perhaps be truly descrloeu
% ARCHAEOLOGICAL and still be a manlies-
tation Of sound business sense In appre-
bending the true meaning OF the polucaI-
economic situation"
He spoke disparagingly Of he modern
legislative movement for investigation and
reform in business, so far as II tended TO
hurt business. but cautioned the bankers
that they should get in line with 'he
movement rather than TO attempt TO Cd
struct It.
~ believe" he said. 'if business men
will got themselves into state OF NINA
where ttev view conditions broadly WIN
an historical and social sense rather than
onlv from their individual point OF view
thy will apprehend better the direction
IN which the whole current Of political
in ught is flowing, and will feel less
i.upatience with this legislative movement
and vastly less pessimistic concerning IFS
results.
the basis that is back Of the demand
for legislative restriction and control or
business believe to be in a large measure
made up OF sound economic facts
THE development of industriaism
within our lifetime has been OF such a
revolutionary character as naturally and
tightly TO create a demand for body or
controlling laws such as were never
dreamed OF by our fathers. l deny that
those laws have been made necessary
bv unfairness and wicked practices on
the part OF mon who have conducted
large affairs. although instances Of I'M
fairness and wicked practices may be
pointed out"
Siqns of Future Business.
In introducing his belief that, aside
from the shade cast by the condition OF
political doubt, great prosperity is loom
ing ahead in this country, Mr.. Vanderlip
described the standards that used to pre-
vail in Judging the business future. These
used 10 be statistics OF production and
distribution, reports as to the crop out
look, the condition OF the money market
and OF credit, etc.
Then" said the banker, "the stats
tics Of business were measure OF the
business outlook. II Is almost startling
10 note how far from true that is to-day
how important has become the adven-
titious factor OF legislation and legis-
lstive tendencies.
I'VE can no longer measure the outlook
in the terms with which business men
are made familiar through their daily
routine. The Congressional Record is
crowding out Of its place OF importance
The Financial Chronicle The attitude
OF mind of the Interstate Commerce
Commission has become more important
than the statistics of railroad traffic.
"The obstacles in the way OF business
recovery may perhaps be truly Intangible
factors, and still a feeling OF apprehen-
sion regarding them may be manifesto
ton Of sound business sense In compre-
bending the true meaning OF the POLITICAL
economic situation.
But II for a moment we could forget
these factors and attempt 10 gauge the
business outlook by only the old time
standards which used to be sufficient. we
would see looming large the prospect Of
great agricultural yield, giving promise
I'm some directions OF bumper crops now
almost assured and at almost every point
Of an exceptionally bountiful year.
we would see easy money here and
abroad
ION the other side OF the page, still
looking at only the concrete facts OF the
business situation, we see that n reduced
tariff is permitting some increases in our
imports OF manufactured articles and hav-
INK a corresponding effect In slowing down
some OF our industries Unfortunately
there is a large unemployment OF labor.
but that means that II renewed business
activity were 10 come It would not he
impeded at the start by a lack OF work
men.
"One OF the most serious obstacles that
we would find would still be in the labor
situation. tie eXactions OF unions
Railroads a Problem.
The most important entry VIC would
make on the debit side OF the business
outlook would be in connection with the
operation aud financing OF rho railroads