New-York tribune., 1918-06-07
Hints Market May Be
Closed to All Except Gov
ernment Bonds
Labor Well Satisfied
Understands That This Is Not
A Rich Mans Struggle, but
One Of All the People

National Conference on War Economy
in the Astor Hotel yesterday The
uestion of whether there would be
much of market for any bond is
snes except those of the government, if
the war continued for long period,
was raised by Mortimer L. Schiff, of
Kuhn, Loeb & Co., in his speech on
financing local governments.
Other speakers were Governor Frank
0. Lowden of Illinois, Governor Emer-
son c. Harrington of Maryland, W. F.
Willoughby. director of the Institute
for Government Research, of Wash
ington; Arthur n. Pierson, member of
the New Jersey Assembly; Hugh Frayne,
Eastern organizer for the Ameri-
can Federation of Labor: Thomas B.
Love, Assistant Secretary of the Treas
ury, and V. Everit Macy, chairman of
the Shipbuilding Labor Adjustment
Board.
Warburg Urges Individual Economy
Individual economy was the basis of
victory in conflict that was "a war
Of nations, not armies," Mr.. Warburg
said, and proceeded to show that the
same motive actuated the woman who
bought fewer and cheaper hats and
gowns and the state or municipality
which accepted the ruling of the capi-
tai issues committee and dropped from
its programme of public improvements
those things not considered im,uedi-
ately essential in the conduct of the
war or the welfare of the community.
Even under the war fnanee corpora
ton act, he pointed out, the CAPITAL
Issues Committee had to rely upon
voluntary acquiescence in its decisions,
but it had found cooperation on every
hand So strict was the rule of COM
munity economy which the committee
applied, he said, that it was urged that
all generous OR unnecessary contractual
or franchise construction obligations
be waived or held in abeyance, at least
for the period of the war"
Such action was necessary, he said,
not only because of the labor and ma
terials needed in such construction
work, but to conserve the savings Of II;
the public for the national government
and to protect public utility invest
nents from unnecessary shrinkage in
value. While doing all in its power
to prevent business enterprises from
approaching bankruptcy, he continued.
the War Finance Corporation had no
intention of temporarily staving off
insolvency from them.
81 may say" he said, "that this
corporation in the majority of cases
expects to deal only with concerns
that are solvent and able to provide
bankers guaranty. The amount that
may be advanced without that guar
anty is strictly limited by law, and
tits safe to assume that except where
the public interest absolutely requires
1t the corporation will rot consider it.
sell warranted in making advances to
companies on the brink of insolvency.
Mr.. Frayne said that the war had ac-
ecmplished more in humanizing the
world than any other event in history
We know now that if many activi-
ties outside of the reach of the gov
eminent had been under government
control before the war began, we
would now be better off in the prose
cutlon of the war" he declared. "La-
Dor has been satisfied by the action
Of the government in taking over i'm
pcrtant industries. Labor is satisfied
,aSa x,n the government as an employer
Labor understands very we'll that this
is not rich mans war, but that it is
IN me war Of rich and poor alike, for
fperty, justice and democracy.
Government a Model Employer
The relations between the railroad
employees and the government, which
now controls the railroads, are sc
amiable that strikes and threats
o. strikes are practically impos
hole. 1t is the sincere hope Of
labor that the government will
prove model for all employers in tht
future. Those few who hope. through
the exigencies of this war, to exploi
tho W. Worl,a Il
complain and they will receive scan
sympathy if Uncle Sam takes their EN-
ployes, for the workingmen of thi
nation know very we'll that Uncle San
Is not going to become sweatshol
employer"
Mr. Love said that the United State
government to-day was the creates
employer of men the world had eve
known, with more than 100000 sol
dlers and sailors on its payroll il
addition to its vast civilian army, an
mat the governments insurance for it
nghting men amounted to about SIS
ISO,o00,000.
Just as there is limit to the mum
Der Of men who can be taken from pro
tectivc industry without affecting tn
development of the country, so is ther
limit to the credit We can provid
WITHOUT curtaillng our normal needs.
SAID Mr.. Schiff. "It may we'll be tina
we shall have to exceed both these lin
~ and, II necessary, we must not hes
Nte to do so. Business cannot go O
usual during war time, and tn
s'onec we realize this the sooner vii
We make our resources available /
Aelr full measure for our war require
nehss. Thrift and economy, both cor
ss, sofate and individual, must be tn
i. iiaie Even our national purse is no
Souomless, and we must do withou
many things so there may be no in
"rlerence with the needs of the gov
eminent"
oinicult to Curtail Banking Credit
Mr.: Schiff said that curtailment o
ssshxing - credit would be very Difficult
enforce and a rather dangerou
Apeolent. Banks, he said, could d.
na ~ucn to discourage unnecessary ex
sshultures by their customers who seel
TT appears to me extremely doubt
s;u MI whether as the war goes on, ther
M III pc market to any extent tor an.
~" issues except government bonds
", II so, whether the offering OF othe
sS.SSorities should be permitted" MI
WIN continued. "In order to max
saliaole the enormous sums which ou
sss'eipation in the war requires, tn
ssoVernment must monopolize the IN
.stment market and even state an
psu1nic'pal bonds must give way I
oeral necessities.