Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-11-29
In Amcricn's Own i,chaif

THERE is nothing of hostility to allied gov
ernmcnts. although there may he Scri-
Gus measure OF resulting Inconvenience in
tho warning the Federal Reserve Board has
issued To member banks against purchasing
foreign treasury bills. involving long-tcrm
Obligations. The warning is merely the cX-
preston OF Il purpose and desire to conserve
American capital for the expansion OF Ameri-
Gan industry.
There is danger, with all his new wealth
and newly acquired honor as the worlds
banker to bccloud his vision and interfere
with his judgment. that Uncle Sam will ac-
quire 4 swcllcd head II is highly desirable
that this nation realize the destiny to which
it has been called and play we'll that i'm
portant part i'll world affairs to which great
events have assigned it, but even these
worthy enterprises may be ovcrdone
Just now money is the cheapest thing i'm
the United States. The uncxampled high
cost Of living reflects this fact as surely as ii
does the war in Europe and the resulting
limitation of production and interference
with transportation There is little or no
visible unemployment. and high wages are
the rule rather than the exception There is
scarcely an issue OF a newspaper which does
not chronicle wage increase in some great
industry and there have been thousands of
such increases. local in their influence. which
the newspapers never mention. The working
buying freely all over the country. undeterred
by the high prices they required to pay
Gold-money-is worth less when compared
with the value of commodities than it has
been for many years.
Naturally enough. bankers are looking for
attractive invest mcnts. and the treasury note
OF foreign governments seem to answer this
description more than passing we'll 'The
form which the most recent borrowing is
N"klhg, apart from reference to its intrinsic
merits, says the Federal Reserve Boards
statement, makes it appear particularly at
lractve as a banking investment In
lact' il would appear so attractive that nm
less a broader and national point of view be
adopted individual banks might easily r,o
tempted TO invest in il To such an extent that
'ne bhhklng resources OF this country en-
ploEeo IN TINS manner might run into many
hundreds OF millions of dollars
mere lies the danger to American pros-
periy If these short-term obligations are
not redeemed al their Ostensible maturity
but remain until they are absorbed in bond
issues II might we'll happen further TO ouoto
me noard statement. that liquid funds of
our banks, which should be available for
short-credit facilities to our merchants mann
iac'urers and farmers. would be exposed 10
the danger of being absorbed for other mr.
poses 10 disproportionate degree
Great Britain and her allies already ha vc
borrowed $2,000,000. 900 or more in his
country, and the rcpurchase of American
securities, which had been held abroad has
required othcr large amounts OF American
caPltai. These tremendous investments I'm vo
not yet served seriously to menace our luuid
reserveS-We have still more money than we
can put to productive use in fields other Than
speculation--but continuance in the same
policy may bring disaster
Speaking OF zeppelin raids, Germany may
soon reach the conclusion ,ho u,.,