Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-05-18
People Must Not Hoard.
But Must Make Ready for
An Overwhelming Business
Frank A. Vanderlip. Decries
Notion that Paralysis of
Trade or Industry Will
Follow ~Economy-Urges
Everyone to Purchase Lib
erty Loan Honey
Must be Raised at Home.

erty Loan Bonds-Money
Must be Raised at Home.
New York. May 1s.-Different busi<
ness. but better business for America
during the war, was predicted by
Frank L.. .Vanderlip, banker and
the council of national defense advis-
DRY commission In a prepared state
ment. Mr.. VANDERBILT said the war will
call for readjustme nts, but not for.
diminution In volume of business, that
times will be better than ever before.
and that the people should be getting
ready for top-speed production that
will utilize every energy.
The sooner theFipublic gets over
the idea that W. want 'business,. as us
H. or can have business as usual
during this great war, the better for
oll." he said; I'VE want to stop all un-
necessary work n unnecessary ex-
penditures short off. and concentrate
on the immense volume of work
which will have to he done.
Business men should get rid of
any foolish fears h a economy will
bring on a general paralysis Of indus
try or trade. %
Plenty Of Work for Everybody.
There is no danger of rot having
work for everybody. The trouble is
> that there is more work In sight than
can possibly be done, and the ques-
ton is whether we shall cut off luxur-
les or necessities. 1t is absurd under
these conditions to talk OF the. danger
of unemployment, and to urge that
the people shall go on buying what
they do not actually need in order to
keep labor from unemployment or to
maintain business as usual.
How is labor to he had to make
uniforms unless it is released from
making other clothes? How are DON
to be had for blankets unless releas-
ed from something else?, How is
steel to be had for ships. tin cans and
agricultural implements unless other
consumption is curtailed? How are
women to he had for offices unless
are we to put $1,000, 900, 900 or S.
OOO,00O,000 of purchasing power at
the disposal of the government unless
we curtail II individual expendi-
lures?
Must Use Both Hands for War.
THE country should Immediately
awake to the fact that 1t has a great
task in hand. and that it cannot carry
on a war like this with one hand and
W wv all l1Ic pltSIlICS8 i III
before with the other.
Most of the argument against
economy assumes that the people who
economize will hoard their money.
That. of course. will be foolish, but II
they lend their savings to the govern
ment it will find its way directly back
into circulation in providing for the
governments needs.
Economy To Aid the Nation.
"These bond issues will necessitate
more taxation in the future than in
the past. but the person who practices
self-denial now in order to buy a
bond, not only aids the government,
but provides an offset to future taxa
ton or this account The individual
who takes his share OF the bonds will
pay his taxes n his own pocket. or
Every community should be close
~ organized. for subscriptions to these
"once the habit of saving to buy a
bond is established. it will no be
when the war is over, but
a million new springs of wealth will
be developed to help on the develop
ment Of industry and the progress of
society in the future.
Buy Bonds for Boys.
+. Parents should buy for their chill
dren, and employers should Join hands
with their employees. in the name of a
pCll LIE ana = 10 D1lnR Oil
end to he worlds last great war.
I'm setting out to raise the first in
stallment of the $4,000, 900, 900 bono
issue, it is very important for the peo-
pie of this country to understand just
how large the task Is and how they
must go about it.
I'm the first place, our situation is
quite different from that of England,
in that England had a great amount
Of capital employed abroad. which II
was able to CONVEX and bring home.
I'VE have few holdings of foreign
securities. and there is no other mar
ket In which securities can be sold,
This is rich country, but it,
wealth is in real estate. factories, rail.
ways and the machinery of produc.
ton. This property cannot be paid
into the government Treasury, nor car
money be raised in any general sense
~ selling property to Zach other. We
see the effect Of this in declining Sc.
curity markets. Such efforts depreci.
ate capital. values, disturb confidence
make people feel poor, and in that
, way actually make the task harder.
Cannot Use Idle Bank Funds.
This loan cannot possibly be taker
up by h mere conversion Of bank
funds now Idle. The people must al
ticipate their earnings and pledge
them in advance. The treasury allows
Payments .upOH lIISldllul0ulS ana II
these terms do not suit the subscrib'
er's convenience, he should consult
banker Of his acquaintance.
"The bankers must make up theil
minds to lend freely and at a moder'
ate interest rate, to promote this loan
This is a great national emergency
. and ordinary rules should not govern
Loans BY Banks Safe.
"1n the first place, loans made will
these bonds as collateral, with mar
ginal payments, will be safe beyont
question, and, in the second place. thu
federal reserve banks are at hand tt
back up the local banks. 1t is tim,
now to lay aside all resolutions ant
prejudices against rediscounting. :
, "On the other hand. no would-b'
subscriber has the right. while pre-
tending to render a public servic,
himself. to throw all of the burde,
on a bank. He should not make
= subscription without a bona hde in
tention OF paying up on it within
reasonable time and he should max
a payment down."
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