The Washington herald., 1917-09-24

board, subscriptions for the Liberty
Loan considerably in excess of $780,
100000 were made. Mr.. Baker has
had in the past associations with
voluntary committees of bankers
who were assembled, often at the
call of the late ]. p. Morgan, for the
purpose of considering ways and
means whereby threatening money
market conditions or securities mar
ket panic could be averted. An
other member of this committee is
Charles II. Sabin, president of the
largest trust institution in the
United States, and seated side by
side with him at the committee
meetings Is Frank A. Vanderlip,
president of the largest of the ma
tional banks OF the United States,
and one of the greatest banks in the
world. Mr.. Vanderlip has also had
the experience as member of
quickly assembled committees in
handling difficult problems, whose
correct answer would relieve dan
gerous financial conditions. The
money power possessed by these
and other members of the commit
tee Is very great and it is all at the
service OF the government and the
people.
There are no. really dangerous
conditions at present. nor is there
likely to be any. The only oues-
ton for the bankers to consider is
how they may aid in floating the
second liberty loan and in advanc-
ing some OF the other governments
enormous financial projects, while
at the same time so acting as to
prevent undue stringency in the
money market. With this committee
and ex-officio the head of IT, is Ben
Jamin Strong, jr., the governor of
the Federal Reserve Bank for this
district.
Members Of the committee have said
to their friends that they have been
very glad to see the readiness with
which the banks have resp 1nied to the
request that detailed memoranda be
sent which show each day, II possi-
BILE, what the condition Of the banks
of New York and of the metropolitan
district is. The banks have EulIy OPEN
ed their books to inspection. With this
data the committee is fortified to take
such cooperative action as is deeIue1
expedient A few years ago the or
Ganization and meetings OF a COM
mittee of this kind would have been
looked upon with suspicion, and the
charge would certainly have been
made that It was acting as a sort CT
money trust. seeking TO command for
personal ends the control OF the money
situation.
Times have changed. No longer is
the organization and meeting OF a
committee of this kind regarded with
distrust, for it is known that it is
nothing more than a cooperative IN
dertaking with the government as one
Of the associates in the cooperation,
whereby there may be perfected a
sound, safe and simple system of so
mobilizing the stupendous resources
and money power of the American
people as to make 1t all the easier for
the government to secure the funds
It needs, and at the same time to Pro-
teet American industries and legiti-
mate business. For il is a curious
paradox that, while the people of the
United States were never in posses
sion OF so much money as hey are
at the present time. nevertheless it is
vital that there be a well systematized
coordination and highly perfected CO.
operation between tine banks OF the
United States and the government in
order that these resources may be skill
fully handled and conveniently Util-
lied. 1t is something Of this kind That
the railroads of the United States have
accomplished.
HOLLAND.