New-York tribune., 1918-01-31
Williams Says
Fixing of Prices
Averts Calamities
Controller of Currency, in
Report, Asks Congress to
Help Public Utilities

more efficiently managed than ever
before. Their resources are $2,009,-
C9s,OO0 larger than ever before re-
ported, reaching total of $685.
1877, 900.
The banking power Of the United
States, represented by capital, surplus
profits, circulation and deposits Of ma
tional banks and other reporting banks
and trust companies, including ais }
the paid-in capital and deposits of the
twelve Federal Reserve banks, is now
estimated at $37,529, 100000, having
increased by $14,34S 100000 since the
commencement Of the present admin
istration.
Since 1890 the banking power of this
country has increased seven-fold, and
it now is two and half times greater
than Mulhall's estimate OF the banking
power of the whole world in that year
which was $l5,558, ,0CC 900.
u. S. Financial Reservoir
The Controller gives warning that
with the immense development of our
4
sponsibilities have grown proportion
ately. Upon us now devolves the task
of supplying not only our own vital
needs. but of keeping ourselves strong
and ready to meet the demands which
arc being and will continue to be made
upon us by our allies in the world
struggle 1t is. he points out, of su.
premc Importance that allurements OF
profit from commerce or industry IN
this country or in neutral countries
for purposes not essential to our sue
cess in the war, should not induce Us
tc divert or dissipatc the capital OF
| financial resources Of our people.
This country has become the great
financial reservoir and banking head
quarters of the world and, in large
measure, the dependence of those great
financial nations whose enterprise IN
the past had provided so largely the
capital for the commerce and indus
tries of two hcmispheres, and who now
look to US to supply to so great an
extent the sincws of war as we'll as
the needs of industry and world com
| mcrcc.
Reviewing briefly the financial and
business conditions during the year
the imitation in commodity prices, and
the depression in securities, the Con
troller declares that the enactment Of
emergency laws. intrustng the Presl-
dent with powers uneXampled in this
country to fix prices for food, fuel
etc. has avcrted calamities which NO
financial system, however strong or
powerful could have prevented OF
overcome. He predicts that. with thc,
return Of peace, we may look forward
to an era Of great activity and de-
velopment in the work Of rebuilding
INN Lon o, n c
and equipments Of peace and industry
the countries now engaged in unprece
uented destruction.
Plea for Public Utilities
Attention is called to the decline OF
earning capacity Of public utility cor
porations and the consequent shrink
The danger, the Controller insists. is
a real one, which should stimulate the
efforts of Congress and of every pa
triotc citizen. Upon the efficiency
and strength Of these corporations, he
says, we arc largely dependent for
speed and success in preparing for
and prosecuting the war. With an
increase in the cost of labor and of
all materials necessary for operation
and upkeep. increasing demands arc
being made upon them for quicker
service and greater facilities. The
first and most direct relief to the
public utilities corporations can be
given. he thinks. by the state public
and local authorities understanding
the necessities of war and realizing
Nlat the more promptly its burdens
are accepted the sooner they will be
lifted. He bespeaks forbearancc and
consideration by the state commits
sions and municipal authorities, and
comments upon the Importance OF
permitting charges for services which
"will keep in them the breath of sol
vency, protect their owners against
unjust loss. and give them basis Of
credit on which they may obtain the
funds with which to meet the strain
needs" The breaking down Of these
corporations would be a national ca
lamity.
He also expresses the hope that the
Congress may give early consideration
to some measure to provide, directly
or indirectly, for advance of funds on
some conservative basis to such of
these corporations as need help most
urgently, so that they may give ade
quate service to the government. The
remedy. he comedies, would be un-
usual-but the times arc unusual.
The amount Of railroad and other
public service bonds owned by the ma
tional banks June 20, 1917, was reported
at S763 100000. This, the Controller
says, is equal to approximately 70 pei
cent of the capital stock of the banks.
Attacks High Interest Charges
In expressing the hope that corpora.
tlons may receive considerate treat.
ment from state and municipal author.
tiles, the Controller says it is of equal
if not still greater, Importance that
corporations should not become the
prey of any proiiteers, whether those
who supply materials needed for opera.
tion or who furnish the funds and capi.
tai required for needed extensions and
enlargements or for renewals of exist
ing issues. The bankers, he saws. who
selhshly exact a 8 or ii per cent rate
as interest or commission, from client,
whether individuals or corporations
for high grade issues which in peace
times they would have been glad tc
take at per cent. are paving the way
for the just condemnation of patriotic
men.
The Controller shows that in the Ia g,
three calendar years the aggregate
balance OF trade in our favor has ex
ceeded eight billion dollars. We have
imported about a billion dollars OF
gold; have practically paid off the five
billions which we owed at the outbreak
of the war in the shape of America
securities held abroad, and have Loaned
over two billions in various foreign
countries exclusive of the large al