Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-01-01
PRACTICE ECONOMY
CALL OF new YEAR
Federal Reserve Board Urges
Banks to Spread Thrift
Propaganda.
SEEKS CREDIT LIMITS

SEEMS OnEUli ItHil y
Economy, practiced by each individual
to help win the war. is the gospel Tor the
New Year preached by the Federal Re
serve Board. Banks are urged to spread
this message broadcast throughout the
country by promoting thrift campaigns IN
their respective cities
LET the public realize says a state
ments issued by the Federal Reserve
Board. that 1t is more respectable in such
war times as confront US to be seen In OLD
clothes than in new ones
And fully as important as economy OF
goods is economy OF credit, the state
ment emphasized. 1t urges that credit
should be limited as far as possible to es-
sertials, and that private or local credit
ecorts or bond issues should not be al
lowed to collide or enter into contest with
federal activities for mobilizing the
finances Of the country to pay the war
costs.
How to Practice Thrift.
How the people should be led to prac-
tice thrift is explained as follows:
'The banks are urged to teach in
their districts the meaning ana the
necessity Of saving and it's relation TO
tho successful financing Of the war-to
tell the city merchant and tho country
storekeeper that this. Is not tho time
to buy and stock up. especially with
Injuries.
Let the people everywhere be en-
|couraged to consume fewer things, ana
let these be the simple and substantial
things that are necessary to health and
strength.
LET the banks tell the people Of their
communities and their authorities the
mayors and governors. that this 10 not
the time for cities to be spending
money on public works; rather should
they be considering the suspension OF
existing work with the view OF releas-
ing men and material for the use OF
the government and so as not to COM
pete with the government for the saw
inge Of the people. therby weakening
the ability of the government to place
it's loans"
Financed by Loans.
"war financing in the last analysis"
says the statement. means putting the
government in possession of goods and
services. Financing by loans means the
sale to the government Of goods on
ment and the governments with which
we are associated must have goods and
services. It Is OF as much Importance,
therefore. that the government should
duires as 1t is that It should be helped
to procure the credit 1t requires with
which to pay for goods.
I'm neither respect are the American
people as yet cooperating to suf-
icient degree; primarily because they
have not yet been adequately impressed
with the paramount Importance OF their
co-operation--they have not yet been
the success or failure OF the warm
brief, the fate Of the country-lfes in
their hands"
Urge Banks Aid.
Banks are urged to tell the people
that by saving they serve their country
IN these four ways:
ment and our allied governments to OBJ
tain the goods required with the reQuis-
lite speed. AS everybody knows, time
Is a most important factor at this
juncture. Coal. copper, steel and food
stuffs are cases in point.
"(z) BY saving goods not required
by the government they release cor
responding quantities for export to
other countries In exchange for which
needed supplies may be secured. To
States would cut down consumption Of
cotton and wooden goods, even to a
slight amount, goods to the value of
millions OF dollars would be available
for export and could be made on the
basis OF exchange to pay for much
needed supplies Of copper and nitrates
for ourselves and beef and wheat for
the use OF our allies, obtained in South
America.
"(a) BY consuming goods in smaller
amounts. ROOda 4Ayed.
money is saved. and the people thus put
In a position to absorb and pay for
the war loans Of the government out
OF savings.
Halts high Prices.
"(4). BY diminishing the consumption
OF goods and by paying for government
bonds out of savings instead of from
funds borrowed from the banks, both
the rapid rise Of prices OF goods Is re-
tarded as we'll as banging imitation
which accelerates the rise Of prices.
TT cannot have escaped the attention
Of the banks, that, since the beginning
Of the war, deposits have increased at
q rapid rate and that loans, discounts
ana nave Grown At an an even ven
federal reserves holdings OF gold have
also increased to a point where they
are larger than those of any other coun-
try, but the percentage Of the gold re-
serves against deposits and rates has
decreased.
This is familiar phenomenon in
time Of war, and to q certain extent per-
haps unavoidable. but 1t must neverthe-
less be our constant concern to keep
every dangerous tendency in the bank
ling situation under control and particu-
Ilarly to retard the too rapid expansion
Of banking credit as far as this can be
done without jeopardizing the main
business Of the country at this time
the winning Of the war"
More Silver Currency.
from fhe phfIadefphia luuuirer.