The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1918-08-06
TIME TO CONSERVE
BORROWING POWER
CONTINUED from Page 1.)

grant loans of these classes. and by
gradually causing existing loans of
these classes to be reduced or elm
mated, bankers could conserve cred
T. without causing hardship and also
give many people an impetus to save
at time when saving is of vital i'm
portance to the nation
Loans to Facilitate. Production or
Distribution.
"The three main groups of bor-
rowers for productive or distributve
purposes are farmers, manufactur-
ers, and merchants.
Il. Farmers-The farmers are
being asked to produce more than
ever before and loans for productive
purposes must have the right of wav.
But the kind of loans which should
be discouraged or declined are:
"(a) Loans for the acquisition of
additional property. unless the area
under production is to be increased
thereby and immediate results NAV
be expected
"(b) Loans for any construction
not necessary to the prcductiveness
of the iarm within the year: and
"(c) Loans for the purchase of
articles OF comfort and luxury.
I'm sections where farming profits
have been large. an endcavor should
be made to induce farmers to apply
GOOD portion of them to the reduc-
tion of longstanding loans or to the
financing of their seasonal require
ments, thereby conserving bank
credit.
''2. Manufacturers rs-Manufactur-
ers who are making large profits
should be urged to reduce or ex-
tinguish their debts rather than in
crease capacity and output unless
the industry is one which is clearly
necessary to the prosecution of the
war All manufacturers should be
urged to carry as small inventories
as practicable; to eliminate from
their products elements which add
w itS 'oSl buA hpl W llS
value and serviceability, or which
are introduced simply for fashion
OF appearance; and to avoid as far as
practicable introducing new styles
during the period of the war
Manufacturers whose products is
not clearly required either for the
prosecution of the war, or to main
tain the health and efficiency of our
civilian population, should be urged
to assist the government by adapting
at least a part of their plants to the
manufacturer OF articles clearly re-
quired for these purposes. Bankers
would do well to scrutinize cerefully
the credits of these engaged in in
dustries not clearly essential for
these purposes since such Industries
are likely to be the first ones to suf-
fer interrupti@n from transportation,
fuel, or powG. embargoes
3. Merchants--Almost the same
suggestions that have been made
with regard to the production OF
goods by manufacturers may be ap-
piled TO the distribution of goods by
merchants. namely, reduction of
stock carried, reduction or elimina-
tion of that portion of their stock
of articles of mere fash
ion or luxury and the substitution OF
palmer and more serviceable ar
ticles of personal comfort. etc.
THE board feels that IL would be
BILE to deal with the sub
ject more specifically at the present
time. but urges that every one assist
in the movement, to the best OF his
ability.
% BY studying and understand
ing the economic necessity for the
OF credit.
"(2) BY a careful analysis Of
each loan to ascertain those which
are the least essential to the prsecu-
ton of the war.
"tJ BY applying to each loan
the test 'Is IL necessary4 for thel
OF the war or the hea.thl
and safety OF our civilian popula-
tom"
"(4 BY urging his local trade
organizations and board of trade to
study the subject and make dehniteI
recommendations for the conserva-
tion of credit and the conversion of
less essential to more essential pro-
huction and distribution.
"(5D By discussing the matter