Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-12-09
NO time FOR SPECULATION
WITH BORROWED CAPITAL
Governor Scay warns Virginia
Credit Men Against Danger
OF OvercxpnnSion.
GOLD SUPPLY WILL DIMINISH
with Rcshipmcnt OF Metal TO War
ring Nations viii Come Contrac-
tton OF Credit Which Reserve Sys-
tenn Alone Will Mitigate.

WIN solemn warming against
| ovcr-cNpansion OF commercial enter
| priscs buiit up through extraordinary.
conditions which have brought 10 tbis
! country the greatest gold supply I'm its
niS'orE. George j. Scay. governor OF
IN" Richmond Federal Reserve Bank.
| last night. at the banquet of the STAT r.
/ Conference. National Association or
/ credit Men, held 1T til" jefferson IIo-
/ tel advised business mon to conduct
their affairs with the greatest circum-
spcciion. notwithstanding tho tenrp,n
/ ton OF large profits
ihtse are unusual times" he said
w" should do AN unusual thing Con-
"itions offering very large profits can
u" very quickly reversed Espcci,IIv
L. II time for banks TO sec To i, TIN,
'hclr resources arc kept as liquid ,s
possiblc-by which is meant thcy
fhould connnc their loans, as far ~.
Possioic. 10 those commercial and ar
rtcultural transactions which ltoui1o,
themselves within u rcasonnblc linn
ana III the regular COURSE or .n,ir,
IL ~ not n time TO embark upou l,r,.o
constructive enterprises upon horrov
I'D capital.
WILL. HE COMPELLED
~ TO RE-ENPORT GOLD
VI course tho time will como. fol.
loving soon upon the close OF the war
". Atali d" compelled 20 cHpor;
part. doubtless a large n,r, NJ nv.
gold which has poured I'm ,,,nn 49,.
othcr nations will he compelled TO
nave II TO strengthen their financial
systems. winch arc now, like their In
"uS'ries' operated under the law or
nilt"ry necessity. They viii than 10
hbic TO send us more goods In rxcb,,rcn
'or the goods they buy from us. and
they viii regain the mower oy,r thn
a tai,
always had in normal times. Then Tho
process OF credit expansion viii Inc
reversed. That much is certain AMI
1t must be remembered that nu,I;n,,
"own is faster process than building
up.
VI "e were to turn round now and
export II in volume II would or rour..
result in contraction of credit. he.
cause II has become absorbed Tho
reserve System alone would stand
between business and "a sudden md
sever" contraction OF credit Tn Ia
ms ttmo there has no, been onpor
iunity 10 dcmonstratc that reserve
BANKS arc just what they were de-
signed to hc--a hulwark of rcsrryo
strength. Of reserve crcdi, mower
standing between industry and violent
contraction or suspension Of credit. II
Shohiu now be apparent 70 the most
superficial analysist that tho mower Of
protection III tho system has all thu
Wh'if becn operating beneath tho suv-
lace. ana that We awe to it chiefly that
confidence which alone has rendered.
possible tho UNINTERRUPTED and ,nur
Vicious expansion of trade and crcdi,
IN These extraordinary times"
oPPOSED To AMENDMENT
OF FEDERAL RESERNE: ACT
AT the afternoon session OF tho con-
terence. The credit men unanimously
mt tad. H.
ward :. Sh, fey. Of Lyuchburr nm
proving the course OF Representative
Glass AMI Senator owen I'm preparing
I" resist u movement TO amend the
rcGera! reserve act SO ar 10 give bnc,S
10 the banks their privilege Of taHn-
lion on the collection Of checks SIR
She hey told the conference that II.
had definite Information that such
would be the course OF the trainers OF
the act.
Tn" conference, which was tho frst
10 he hr'd III Virginia, adjourned last
night with banquet. by uunui-
nous vote, those attending tho meet
ing decided that II should become an
annual affair. The consensus OF opln-
ion was tina; next years conference
VIII hc held III Norfolk There Is no
central organization. The meeting ana
the plac" will be decided upon by dele
gates FROM the various crcdit associa-
tons In tho state.
Yesterdays conference was prcs!d-
cd over 10y l.. T.. iIncllle. OF this city
y number OF addresses. hearing upOn
nuSiness questions touching chiefly
credit men. were made al the morning;
and afternoon sessions. The address
OF WELDON" WAS delivered hy G. 3 Fen
son. president OF the Richmond asso-
ciati"n Other speakers included Leon
Wail"rs'cin, Richmond: T.: - Sheffcy
LTnchbnrE: : H. Coleman Roanoke:
Ia lilsbury. Ncw Orleans: Caldwell
l1Ardy. Richmond. WHiIcs Hank Nor
FOLK: Colonel 10 Lane Stern. Richmond,
and j. X. Trcgoc. northumberland
National Association OF Credit Men.