The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-01
MADOO ASKS BANKS
TO AVOID INITIATION
He Warns Them AZ CustOdians
Of Prosperity TO Prevent
Speculation.
RESERVE BOARD TO HELP

RALEIGH. y. C.. May si.-Secretary
OF the Treasury McAdoo uttered a
solemn warning against the perils Of in
iation in an address before the Chamber
Of Commerce here tonight. The great
resources which the country has been
enabled to gather In the past years Of
prosperity. he said. have thrust upon the
men who have control of them RESPONSE
bilitv so to use these resources that they
will be employed in legitimate and whole
some enterprise and development and
not for speculation or imitation.
The duty devolves upon the bankers
Of the United States" said Mr.. McAdoo.
because the responsibility rests primar-
lily upon them 20 curb speculation and to
restrain i%nnationary tendencies. The
Federal Reserve Board at Washington
will use Its great power to assist in the
wholesome use Of the great credit re-
sources OF the country and to prevent
~unhealthful tendencies; but the banks
themselves have the chief power and re-
sponsibility the Federal Reserve Board
can only contribute toward this result
TO the extent that the law gives 1t the
necessary authority.
Doesn't Fear Wars Eject.
when ! speak this word Of caution
about speculation and imitation I must
At the same time express my lack Of
sympathy with the views so s,renuously
put forward. and l think for selfish mo-
tives primarily by some people. and by
that the United States must face a period
Of serious depression. II not possible dis
aster. apo the conclusion OF peace In
Europe. Some people are undoubtedly
honestly impressed by these claims and
are genuinely apprehensive about the
future. Aside from the partisan pur-
pose OF this propaganda. unreasonable
fear alone seems to me to be at the
basis Of all honest apprehension on this
score"
The Secretary devoted a large part
OF his address to a p%aneEyric upon the
country's prosperity. which he said is
the greatest In our history and bids fair
to achieve even more tremendous proper
ttons.
w have not alone the full dinner
pail" he said. but the overlooking din
ner pail"
Claims Credit for Wilson.
Mr.. McAdoo enumerated the numerous
legislative enactments OF the Wilson Ad
ministration which could be pointed to as
instrumentalities of service to the Amer.
lean business man and the American
farmer. He praised the Federal reserve
act and the rural credits bill about to be
adopted as measures by which "the
ghost Of panic has been securely laid
The Government at Washington. he said
saved the country" In the financial
crisis which developed at the outbreak
OF the European al
The Secretary went on to defend his
prediction that the close OF the wal
will witness even greater prosperity In
the United states. He said the depleted
resources and weakened economic poweI
Of the European nations after the wal
did not create a picture In his minC
which caused him to fear their competi'
ton in behalf Of American business
Furthermore, he said that the trade witt
Germany. which amounted TO nearly
$500. 900, 900 before the war and which
once more will he open to the United
states at the end OF the war. will go {
long way toward making up for the wal
orders OF the Allies. while trade extern
sions with South America and the indus
trial exports to Europe needed for thu
work of rebuilding the structures whici
have been destroyed by war will operate
in the same direction.