Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-10-16
SAVINGS Of PEOPLE
TOF|NANCE THE WAR
F. A. vanderllp Suggests to
Bankers Plan to Encourage
Liberty Loan Purchases.
INSTALLMENT PLAN URGED

On the ground that the war must be
financed by the savings OF the people,
Frank A Vanderlip. president Of the Ma
tional City Bank Of New York. has urged
the bankers of the District Of Columbia
to encourage in every way the purchase
of liberty bonds on the installment plan
by small investors. This, he said, not
only would support the government, but
would promote the habit of thrift.
The banks were urged by Mr.. Wander
lip as a public duty to absorb as rapid
" as possible the $4,000,000.o00 short
term certificates which Congress has
authorized the Secretary of the Treas
ury to issue and thus improve the
financial position of the government.
ONLY through self-denial and sacrifice,
he said. could the huge sums necessary
to carry on the war be raised, out ne
expressed confidence that the people
would bravely and adequately perform
this task.
The New York banker. who now Is IN
Washington. where be is giving his time
to the federal government. was the chle1
speaker at the annual meeting OF the
District Bankers Association at the New
Willard Hotel last night. Corcoran Thorn,
vice president of the American Security
and Trust Company. was elected presl-
dent of the association, succeeding john
Poole, who is president Of the Federal
National Bank.
Discusses War Finances.
In discussing war finances Mr.. Van
derlip urged the bankers to refuse TO loan
money for projects that would have no
bearing on the prosecution OF the war, no
matter how attractive the security Of
cred.
I'VE cannot produce SlS.0O0,oOo.0ou
worth of supplies for the government
for war purposes and continue to pro-
duce all the other things we have oeen
producing" said the speaker. III a Dor
rover wants money for plant, the
output of which will not be necessary
for the warrior a theater OF for any
thing that is not part OF our great
purpose-he ought not to be permitted
to have 1t. no matter what security ne
offers.
'.There is now double standard
which every banker should bear in mind
in making loans: First security. and
then purpose This lesson in economy
a lesson that has got to be driven home
to a hundred millions Of people in order
to be successful in this financing.
System in Loans Advised.
'It is an unpatriotic thing today for
any man to employ labor to produce
anything that is not absolutely neces-
something the bankers should see clear
ly and apply to every loan they pass
upon"
Mr. vanderlip said the great credit
machinery of the federal reserve sys-
nor would it be until the banks begin
to make rediscounts. He said he trem-
bled to think what the financial posi-
ton Of the country might be without
these banks.
'.One Of the most important things
now Is to bring into the federal reserve
system all state banks and trust compa-
Mes" Mr.. vanderlip continued. ~ rec
ognize that there have been objections.
moved"
Only by all the banks Joining the sys-
tenn. he said, could the gold resources Of
the country be put into the vaults Of
the reserve banks and made a foundation
for the great structure that will be nee
essary to permit investors to take all the
bonds that 1t may be necessary to place
The association adopted resolution
expressing its thanks to e. S. Wolfe.
formerly Of the District National Bank,
who was secretary OF the association
for three years, until he recently left
Washington to accept a post with the
National City Bank of New York.
1t was agreed TO increase the fund of
the local liberty loan committee from
$4,000 to $1,000, to be expended in float
ing the Districts share of the second
bond issue. 1t also was agreed that the
banks keep open until $50 o'clock
every night this week, except Satur-
day, to accommodate subscribers to
liberty bonds Next week the banks
will keep open till o'clock for Ave
evenings.
Choice Of Officers.
The annual election resulted in the
following officers being chosen to serve
the association for the ensuing year:
Corcoran Thorn, vice president of tho
American Security and Trust Company,
president: A. G. Chaplain, president OF
the Commercial National Bank, first
vice president: N. D: Rosenberg. presi-
dent Of the Bank Of Commerce and Saw
ings. second vice president: Eugene E.
Thompson. Of Crane, Paris & Co. sec
rotary: A. 8. Galley, cashier of the Lin
coin National Bank. treasurer.