South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-09-30
BANKERS To AID
LOAN FLOATATION
FreS't of American ASSoCia-
ton Promises Cooperation
in Financing War.

give the government all the assist
ance possible ia the dotation of fu-
ture bond issues. was given by Peter
W. GoebeI Of Kansas City. Kas..
president Of the association, i'm an
address he delivered here before the
annual convention Of that organiza-
ton. He said.
"All the banks Of the country
have extraordinary duties to per
form in these trying times. They
have assumed these new tasks will
ingly one Of them is to assist the
government in the sale and distribu-
tor OF war loan bonds. This duty
naturally falls To the banks. The
banker is the financial adviser Of
his community. To him the people
turn even when the government calls
and patriotism dictates. The finan-
cial machinery is under his control
So when the secretary Of the treas
u-y called on the banks TO assist in
floating the two billion dollar Lib
erty loan issue. the banks, with
scarcely an exception, devoted their
entire energies 20 the task, and
greatly aided in the achievement of
the splendid success of that cam
Daign.
Promises Cooperation.
THE American Bankers assOcia
ton stands ready 20 give the gov
eminent similar assistance in the
fotation OF future bond issues. The
organization should not again under
take 10 finance such activities and il
will probably not be necessary. The
federal reserve banks. as the gov
ernmental agencies for selling and
distributing war loan bonds, have
had experience and ample time in
which 10 perfect organizations for
rshis purpose. The association will
cooperate with them i'm every way
possible. There are undoubtedly
some things the association can do
better than any other organization.
and il remains only TO have these
things assigned to il as its work in
aiding To raise funds 20 carry on the
war
The loan operations Of the gov
eminent are i'm proportion 10 its vast
military operations. We have under
taken not only to pay our own bills,
bat 10 advance funds 10 our allies.
II is idle TO give figures. They are
incomprehensible So far. the funds
advanced have been expended in this
country. Soon the payment OF the
troops will call for large eXpendi-
lures abroad. The food and NUM-
tions for our armies will not be paid
for by others To supply these nee
essaries production must be greatly
increased tt is obvious that We
must change our ways if we are
successfully 70 perform that which
il is set for us TO do. We nsust stop
skimming off the cream and use all
the milk.
THE only way the people can
produce the funds with which TO
supply the government is by thrift
Thrift means the wise and wasteless
use OF our resources. Tt applies as
well 20 the employer OF labor as 10
the wage Garner. II demands the
effective use Of machinery. of soil,
of mines. OF forests and of men. we
need thrift in the productive pro-
cesses as well as i'm consumption.
Thrift means greater production as
well as wasteless consumption. so we
must save and become more compe-
tent"
Expansion Necessary.
Discussing the recent change in
bank reserve requirements. AR.
Goebel said that fear of an undue
credit expansion and currency in
natiou frequently have been express
ed. He said
Under the existing conditions. il
seems 20 me that both credit and
currency expansion are necessarv.
We are all inclined - measure the
possibilities In such a case by the
disastrous experiences that attended
expansion or the need for il under
the old system We must remember
that we now have the machinery by
which the tendency 20 expansion can
be controlled and we have watch
men. Under any plan of banking.
confidence must be placed i'm some
human element No automatic sys-
tenn for the regulation Of credit has
vet been devised; none is possible.
The situation. rs 7 view f. is per
fectlv safe. provided we exercise
good Judgment and requisite care.
We now control the system. lt no
longer controls us.
Asserting that the railroads OF tho
United States had been most patri-
otto I'm reSnonding To- the demands Of
the government. Mr. Goebel said.
eft seems TO me that the real les
son IS found I'm the lack OF railroad
facilities in the failure 90 have n
reserve which would permit the rail-
roads 70 meet that emergency The
greatest difficulty is found i'm moving
commodities The Ions campaign OF
repression is bearing bitter fruit
The situation bespeaks the need ~
Justice for the railroads OF fair
rates. % liberal treatment and Of the
summary discontinuauce Of persecu-
ton"
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