The sun., 1916-12-17
P.A. VANDERBILT FOR
ALERT CITIZENSHIP
1ndfvidda)Se He Tells Bankers,
t.cahTsoM on Govern
+, mcnt Action.
HScpNE TAX WRONG"
Sees Problcp,s That Neither
Preparedness Nor Pacifists
Can Prevent.

CHICAGO. Dec. Is.--Thirty years ago
Frank A. tanderlip. president Of the
National City Bank OF New York.
started out In this city to make n living
- . stenoGraphcr. Twenty years ago
ho was Just quitting newspaper re-
porter's Job 70 lake q place in the
national Government. Tonight. In
speaking before. the Bankers Club Of
Chicago on the topic "a Country With
an Opportunity" Mr.. 'vsnderitp let his
mind travel back over 0cer those twenty
OF thirty years while he philosophical
over the changes and sought to glance
q little way into the future. Some Of
HE criticisms OF the national character
fRefs very sharp. hut on tho whole Mr..
'vandsfiip presented himself as an op-
eimist. albeit IN -optimist with an 'ff."
There have BEEN" he said. "in the
attitude Of our people toward Eovern-
ment. Viewed from one angle, n distinct
loes Of Independence or self-reliance
and Q growing tendency 20 lean upon
Government action. 10 be Influenced by
governmental .stfitude. and to believe
that q bill In Congress can do what we
ussd to think required individual initia-
- accomplish."'
l6r. vandesiip concluded. however.
ut ~ ars. o. the whole, . soun1er.
betteP nation. . happier people. . more
sAhcisnt people and . bstter govsrned
DooVee than We were twenty years ago.
Ne oould not escape the conclusion. how.
~. that there has been . loss Of IN.
11Dsa1sncs due to . weak leaning upon
loUlGlative action. He noted . great de-
veeoo0ent Of 0ovseDmsnt functions In
tho 0uDerviSion and direction Of AFFAIRS.
m1ukteaing the railroads and the ino ,me
~ - examples Of this development
'l..s.. r.. wro.s.
= Sslisvs khe whole theory Of the taxa.
IN of incomes 10 wrong" said Mr.. Van
6oe1iD. 'Tnste3d Of taxing incomes be-
nevs We shou6 tax expenditure. The
income that is all promptly returned to
reproductive investment is OF the great
est value TO -socfety. Lavishness and
extravasance are double destruction.
Ths dsvjcs Of the Income tax Is only one
q eAo many new phases There has
besa . distinct drift toward what we
GAo0h have called socialism twenty
yeoeu go. but what We are now aocus-
oeOod b regard as merely state control
- ts1s1ul supervision. In the last two
yoAso wo have seen Developments OF
0eaes socialism in Europe which promise
permanently TO have profoupd influence
upoA the relation a government to the
uUoutU OF We. lH0 very fACV tnot IN
an snsrgsncy people turn to State go
cia1iGn a. the only means quickly IA
obtAtn efficiency will b an impressive
auumsnt IN future deb@tes on the sub.
ject.~
Taking up specine matters. Mr.. Van.
deraip referred 10 tho Federal reserve
act a. having made ON the whole . grea
step forward toward giving this country
Q oasicaliy sound banking position.
fhs Government" he added. ''hai
oooe much that has been destructive
mooA that has been III Judged. preju
diced and harmful In It's efforts TO con
trel business. am not sure. however
but businesS men themselves are quite
~ much TO blame as have been our leg
isiators Or the interpretations Of oul
courts. Probably the greatest sain o
aIl In the last twenty years hos been {
gain In the direction Of a clearer mora
vision. sound understanding OF the ethic,
Of business
1r. Vanderlip spoke OF the Fedora
farm loan act AZ, ANOTHER class OF lsgis
lat1oa through which me Government II
o measure enters business"
One great need. said Mr. vanderlip
was to grow a generation Of banker,
eompetsnt to handle the problems OF in.
tssuational finance and homo bankeri
that can rise above sectionalisn.