The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1916-05-30
lOUP SIX BANKERS
CONVENTION GREAT SUCCESS


could be tabulated, think you would
find it sufficient to support at least
one half the charitable institutions
of the country. The national wealth
of the United States is three times
that Of France, and nearly double
that of Great Britain or Germany
our income larger in proportion than
that of any other nation; yet our per-
centage of poverty is from seventy
to eighty per CENTS this thrift OF
fpreparedness,-isi it the lack or prop
er education. The bone and sirew
of the nation are those who depend
on the weekly wage for subsistence.
The government should aid and as
sist those upon whom it's dependence
exists, by instilling frugality and pro-
gress Thrift increases strength, eff
ficiency and character. Let us take
a lesson from the war, and so dis
cipline ourselves as not to be com
placent and satisfied. but to bend our
energies towards the enlightenment
of the masses, to the test of any cri-
sis that may materialize. When the
war ends, and Europe goes back to
industry, the influences which work
to restore the equilibrium of trade
and credit will be released and come
into full operation. Can the United
States hold the trade it has acquired
when our cost OF production exceeds
that Of our competitors? Can we
reduce wages and prices to meet com
petition? Unless we do, our exports
will shrink, the gold that came to us
Will be sent back to make our bal
ances good, credits will be contract.
ed, and readjustment will be in or
der.
There is a certain balance or
equilibrium in all affairs which. when
disturbed, is bound to reestablish it
self. In trade, gold flows from one
country to another. which increases
the reserves of one.-decreases in
another. The increase stimulates
enterprise, encourages expansion of
credits, creates demand for labor and
goods. The other means contrac-
ton Of credits, checking OF enter
prise, lowering of prices on account
OF decrease In demand.
With prices, interest rates, and Sc
curities rising in one country and
falling in the other. free movement
between the two countries will react
upon each other, and influences in
both will work towards the restora-
tion of the equilibrium. Through the
automatic operation Of these infiu-
ences, the worlds output of gold Is
distributed over the earth.-it does
not stay with the countries where il
is produced. They keep only so much
of their share as the worlds business
entities them to hold.-the rest finds
its way where it is needed, Just as
as water seeks its level. At present
the level between this country and
Europe is suspended Gold has poured
into this country in unprecedented
amount; is still coming: rates Mt
money centres abnormally low: every
inducement to expansion Of credit:
industry under full headwav; labor
employed; production in full swing
new supply Of gold to be applied
Shal wages be increased, prices rails
ed. so large amount OF money can
be used to handle the same volume
Of business? Such an increase does
not signify real prosperity.-it is
an imitation which suggests the
spending Of money. Obligations are
1ncreased,-by expansion OF credit,
the business situation really weaken
ed by this delusion. Uuless some
economic proposition is devised to
check this upward rise of prices and
wages, the cost Of production will
far exceed that of the rest OF the
world. Can we hold the gold in
abeyance until the equilibrium Is re-
stored, thereby reducing the chances
of imitation? Or better use in pur-
chasing our own securities abroad?
Or investments in government loans
to those countries from which we are
likely to have demands for gold af-
ter the war is over? We must keep
the level of costs at the point where
we can not only successfully compete
for trade after the war. but enable
us to hold what we have.
Just one word more about pre-
No stone shou16 no LOFT