New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-13
Nation Must Come First
In Financing During War
Government Control of Capital Investment Bankers Are
Told at Convention Is Just as Necessary Control
of Fuel Food or Other Commodities
By Gordon Dorrance

BALTIMORE, Nov. 12.-Six hundred
bankers, representing every state IN
the nation, heard James +. Curtis, sec
retary of the Federal Reserve Bank OF
New York, and their president, Lewis
B. Franklin, vice president of the Guar
anty Trust Company of New York, tell
the Investment Bankers Association OF
America to-day what il must do to win
this war. The sixth annual convention
of the association opened its three-day
session at the Hotel Belyedere this
morning at 10 o'clock.
The session had strong war flavor
and one not likely 10 abate. Mr.. Cur
tbs was not long in getting 70 the point
of proposing that this association lend
its aid in money and brains to a move
calculated TO prevent the issue OF
stocks. bonds and notes for the iinanc-
ing of any municipal, state or private
enterprise which will not do share
toward the successful and necessary
prosecution Of the war.
Although President Franklin was
quick to reply that "the invitation
which Mr.. Curtis has given US is an in
yitation to join the suicide club, to
cut our own throats, TO destroy our own
business" he was equally ready to add
that. IS Mr.. Curtis said. there are
about a million and quarter other
men. clad in brown, who have Joined
the suicide club for US. They arc do
ing IL with life blood; We arc only con-
sidering the profit. There is no body
of men in the country that can solve
this problem better than this body OF
men here in this room. Therefore, 1t
seems to me that it is the time right
now to give very serious consideration
to the subject and have free e%-
change Of opinion on the proposition as
TO whether We will or will not join the
suicide club"
bankers W it'p
A general discussion followed, and
there is small doubt that the body OF
investment bankers, who as firms and
individuals did little IN the last month
but work effectively for the second
Liberty Loan, will exert themselves as
cheerfully and to as good finish IN
whatever means the convention VIII
adopt as most likely 70 work for Amer
lea in it's work against the Hun.
an any programme of wartime con-
servation," Mr.. Curtis said, there arc
two main steps to be taken. The first
is 20 prevent competition in the money
market with issues in which the gov
crnment is concerned. The second IA
to prevent competition with the gov
eminent in the two things that money
can buv-the service of people and the
the articles which they produce.
ITO take these steps it is necessary
70 control the issues of capital just as
completely as transportation, fuel, food
and other necessities of war arc con-
trolled. In exercising this control,
businesses which do not contribute to
the winning of the war must be made
10 fall b. the wayside. Businesses
that do contribute TO the winning Of
the war must be stimulated as they
have never been stimulated before.
Britain Furnishes Lesson
owe can profit most by acting en-
the experience Of Great Britain. In
England no city or village can build II
new sewer or lay out new streets or
roads or 90 any other new construc-
tion work. nor can any private bust
ness do any new construction work in
volving the expenditure Of more than
81. 500 unless it will help win the war
They cannot do new construction work.
because theissue of stocks, bonds or
notes 10 finance it il prohibited.
ain our country ! doubt that VIC
could do by law what Great Britain
has done. There are forty-eight states
here. and In the matter of carrying out
their own enterprises they are states
rights states. We cannot put an end
to new construction work IN the sew
eral states because, in my belief, 1t
would be impossible to get Congress TO
mass the necessary legislation, and
even if passed, IL might prove uncon-
stitutional. We can do 1t only by CO.
operation with the respective govern
ments of the states and municipalities.
This association, together with the big
stock exchanges, could say that no new
issues shall be dealt in by investment
bankers or on the stock exchanges
without the approval of such coun-
ell. They could put the war time con-
servation of capital into effect prompt