Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-12-07
THRIFT, SAYS BANKER,
Is WARS RECOMPENSE
Frank A. Vanderlip Discusses
Finance With Insurance
Heads
NEW YORK, Dec. z

to be spending on domestic war needs
billion dollars a month" Frank A.
Nanderip said at the annual meeting Of
the life insurance presidents In the Hotel
Astor here. But as n matter Of fact"
he went on. the month OF october closed
with expenditures of about s460.00o. 900.
IN November. still with an estimate OF
spending a billion dollars, the month
closed with expenditures OF a little more
than $500. .oo0. 900. What was the reason
It was that the workshops could not
produce the things the Government
wanted as rapidly as they had con-
tracted TO do. II was n question of man
power and Industrial organization" lie
continues
so the great thing you can do TO help
win this war II to get this idea of per-
sonal responsibility over to as many per-
sons as YOU can, SO that their personal
conduct will be Influenced, so that when
they have dollar to spend they will
weigh. not whether they can afford to
spend 1t In the way they desire, but
whether the Government can aftord to
have them spend 1t in the way they de-
sire
Mr. Vanderlip. although president of
the National city Bank. is for the
present getting only 81 a year as chair
man OF the Governments war-savings
committee.
He paid the insurance companies a
great compliment mot because they
have piled up accumulations that are
measured IN hundreds of millions, but
because they have contributed "A LESSON
In teaching personal thrift" ie added !;
However long the war may last and
| however great may be Its cost, every
dollar of that cost can be rccompensed
| II these lessons of thrift can be taught
| thoroughly to all of us. The real prob
lem is not dollars Il is things, manu-
got to have to support our army. a
substantial part of the $4,000. 900, 900
| you have seen Congress appropriate Is
/ for things out of our workshops, This
! Is Il war of workshops to an extent never
known In any struggle before The
measure of our strength, of the force OF
| the blow we are going to strike. will be
the amount the workshops can produce
| for the purpose Of the Government
| We have got to learn the greatest
| lesson In economy that was ever taught
people. because there Is not enough
labor and material. not enough shops
to produce this huge amount OF things
unless every one of us feels the respon-
! sibility for personal economy. ] believe
| the campaign we arc inauguratng. " II
can be brought, as I think It will be
people, will result not only In the free
ing OF labor and materials sufficient foi
Government needs. but will stamp tn.
nation. the national character. will
| rible effects of war"
Mr.. Vanderlip expressed adherence
of the idea of Financing the war with
the printing press''--some form of paper
money. He believed that all history
had no example of the disaster that fol
lows an unredeemable paper issue to-
day. when there are outstanding billions
of securities issued by public service
corporations whose expenditure woult
be inflated in cost by any imitation OF
the currency, but whose income Is fixed
by contract or governmental regulation
He said:
"All men who are Interested In the
existing order OF things must at the
present time be doubly interested ir
seeing that our financial cost Is driver
along sound lines, that the means whici
in sound money, that we do not drift of
Into any consideration of doing 1t II
the easiest way
Herbert Quick urged the life insuranc
companies to add to their investment o
500, 100000 farm mortgage loans. IL
said:
mo greater problem ever confronte,
the American people than the necessit.
which is now upon us of Gradual!
changing from wastefu and destruc
tive agricultural policy TO one whicl
must be based upon the two ,Irs,ta somewha
production and the maintenance of per
manent soil fertility. For the economl
pinch iB now upon us. il has come upoi
US almost with the suddenness of
thunderbolt.
"'rhe fact may be noted here that TIN
life insurance companies of the Unitet
States have loaned on real estate abou
one third of their funds. 7 am advised
that 40 per cent of these real estat
loans are OIL farm property. In amour
these farm mortgage loans of the lif'
insurance companies totay about 1900.
100000. The insurance companies hav'
thus recently become the largest dis
tinguishable factor In the farm loaI
business.
company. hydroelectric plant or an,
other great Industrial or transportation
project must be financed by the advance
ment of money on the basis OF perma
nent or semipermanent Investment. TN
time has come for recognition or tn
fact that the operations Of the farme
require an equally long period Of time.
George r Ide said that the life insur
ance men OF the country were ready an
eager TO lend to the Government ai
the assistance in their power In connec
ton with the plan of governmental ir
surance for soldiers and sailors. II
continued:
"As to the general plan. 1t Is one tina
must appeal to every patriotic either
The purpose of devising some plan tha
viii provide for every member Of tn
fighting force a guarantee that his de
pendents will be taken care OF properi
In event OF any calamity arising to hin
from war service Is an cminently praise
worthy one.