New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-10
Great Banking
Resources Insure
Success Of Loan
Ten Billions Could Be Advanced
American Institutions Could Ad.
vance Few Billions Without
(Alernnder Hamilton Institn,,l

(Alerdnder Hamilton Ins,i,ute)
IF OUR national debt were increased
l. over forty billion dollsrs-enough
70 finance our own expenses and the
purchases of our allies in this country
for several years-our financial re-
sources would still be no more heavily
burdened than those OF Great Britain
After several years Of war. moreover,
our taxation per capita would be 70
greater than that Of England to-day.
! The credit of the government and a'
income of the nation are adequate 70
finance a long war and make certain
the payment Of interest on whatever
debt may be incurred without imposing
an excessive tax burden upon our peo'
pie.
Concentration of Gold Desirable
Our banking resources, moreover
were never In such splendid shape o.
~ the present time. From the STAND
point of international finance 1t would
be better II more Of the gold IN NE
country were in the hands Of the REQ
eral Reserve banks and less IN almless
circulation throughout the country, bu'
in view Of the fact that il is desirable
that the Liberty Loan shall be distrlo'
uted as widely az possible among small
investors throughout the country, II u
interesting 70 know that the many thou
sands of our financial institutions
, known as country banks recently re-
ported surplus reserves which would
hermit them 10 lend as much as siI
billion dollars before exceeding ne
legal limit.
.LoANABLE FUNDS OF NATIONAL
BANKS
On Millions)
Loanabk
credI,
Three primary cities. ......,,S 55e
Secondary cities. 10y
Country banks ........-..... o'9VV
The above table shows a loanable SUI
plus Of over eight billion dollars fo'
the national banks alone, and since the
trust companies and state banks have
resources nearly as large as the ns'
tional banks. it is likely that the 2i'VVV
banks of the country arc able 70 len'
we'll over ten billion dollars without ei'
ceeding legal limitations. Moreover
the lending power Of these banks g"
he increased by borrowing at the fe''
eral Reserve banks, and the eHisI,ep9C s.
Of abundant reserves in the feGeIat -,
serve banks is a guarantee 70 Dps'u.
men that the Liberty Loan VIII De 80
factorily financed without causing 90
curtailment in loans 70 commercia' W.
rowers with solvent assets. -,
Those who advocate paying fof t.'
war out of taxation so a. 20 aFole
fation overlook the fact that so lone
the reserves Of the banks exceed !eso,
requirements they viii be LOOKING W
loans. and that since the banks axe "a
carving excessive reserves they Won.
naturally increase their loans durns
the coming year even u me BO,
nent obtained all It's revenues IT,
taxation. And since the revenues ~
tanned by the government VIII De tll".
back into circulation IN sucn "ay
10 increase business profits ana re-.
tain factory payrolls, u rs better tls,
the banks should be extending lOS-,
literally 70 purchasers OF COVE - -
bonds than 10 finance misceI!
new enterprises during a period W.
prices are so high as 70 make ~
business ventures 10 some cases
ardous.
All Must Economic
Concerning economy, it might u
rointed out that all Of Us VIII oe lo'. 80
10 economic 20 some extent Ds II
heavier taxes We shall have 20 pay co. o'
furthermore, that we ought 20 eVoI 20
mize 70 some extent IN ordet l"As al.
may buy government bonds. IN 81 Re
ton. we should all economic 10 -.
consumption Of articles which are ~ rr
peratively needed for he supply o. ~
army. such as foodstuifs, gasolene, w
per. leather. coal. etc. These comm.
tiles are already selling n hlsH -, 4
so that the producer cannot eomp'S.nt
economy in their consumption IS pre- no,
tised But in our expenditures ~ I'm, oyr
directions. except as necessitated "a.
taxes and our desire TO purchase po .-,y
the practise of any unusual eeVnV
will be unwise. IL would have oSor ,
erang effect upon the businesses w.
which we draw our incomes. Ing
BY all means the standard OF n,i-
in all walks Of life should be mss
tanned. or rs nearly maintained a. I'm
sible. There is great danger lest hes'ht :,
be impaired and individual eiheiene! a
reduced by an extreme ircreSsS
physical labor and abnormal aphed
ton in the consumption OF 1000 d. a.
clothing. Reports from England I'D I'D
cate that too much overtime mas os', a.
industrial fatigue, and in order 20 "a
tain maximum production II mas -
decided best TO allow one day io' u
ercise and recreation.