New-York tribune., 1918-12-12
Spirit of Business Enter
prise Will Be Destroyed,
Association Members Say
L. W. Lamont Optimistic
No Country Ever Before
Had Such Possibilities.
Morgan Partner Declares

ness placed on vigorous peace basis
the investment bankers of the country
consider the proposed Federal taxes an
insuperablc obstacle. Ways and means
Oh chopplng the pending legislation,
winch was characterized at the final
session of the convention of the Invest
ment Bankers Association toe dav as
destructive of the very spirit of bust
ness enterprise, were discussed.
Instead of returning promptly to
their homes tomorrow, MANY of the
300 delegates will visit WASHINGTON and
inform the Representatives and SEN
ators from their respective states of
the reasons why the bankers regard
drastic revision of the tax laws as a
pressing national necessity.
Harmful to Business
The essence of the conclusions of the
delegates is revealed in the following
resolution, proposed by Roy C. Osgood,
of Chicago, chairman of the taxation
committee of the association, which
the convention adopted:
NeoolVeu, II is tne sense or the
board of governors of the association
Bodied in the excess profits and war
, profits tax provision of the existing
law and the legislation now pending
III Congress are and will be harmful
to business development under peace
conditions, and should be discontinued
at the earliest time practicable under
reconstruction conditions"
In their absorption over taxation,
which they consider paramount do
mestlc issue, the delegates did not neg
ect the subject of Americas new place
IN foreign markets, in which interna-
tlonal developments directly affect the
special sphere of investment bankers
Thomas w. Lamont, of J. P. Morgan
Co., submitting the first report of the
newly formed foreign securities COM
mittees, drew hopeful picture, fore
| casting great expansion of American
trade and American usefulness to the
rest of the world. He presented new
statistics which he has compiled since
his last public statements on the SUBJ
ject.
"Never before" he said, "was coun-
try confronted as ours is o-day with
economic and commercial development
abroad. Never before did country
have such an opportunity as ours has
to render great service to mankind.
America Must Play Her Part
Upon you is laid the imperative
duty of studying these conditions in
foreign countries, of educating your
selves to the fact that America can
never again stand aloof, must play her
full part as a great world power, and
esp ~cially at this critical juncture
must do full share in the rebuilding
of wreck world. If we face
these world problems with patience,
with wisdom, and above all things else,
with courage, then Immediately we
shall be playing our part in bringing
the nations to a state of international
reliance one upon another, of inter-
national friendship that will mean
peace for the world in the ages to
come.
Formerly America was the largest
debtor nation of the world Within a
year after the great war began, Amer
lea began to buy back her foreign held
securities, and, as | figure it to-day,
she has repurchased about three
fourths of the $4,oO0,oo0,OO0 total
Con the other hand, private in
vestors in America have loaned to
foreign governments approximately
have loaned to private corporations
and in other ways S5OO0OO, 900 add-
tional. The United States government
has loaned total which will probably
soon reach S8,5OO,OOO,0OO.
There is no possible way for this
Indebtedness to be settled to America
except through the continued and
heavy investment by America in for
eign obligations, both public and pri-
vate"
Mr.. Lamont recommended the ap
Folntment of ub-committees to gather
information about conditions in foreign
countries, and to report to the Invest
ment Bankers Association, ard that
bureau be established to carry on
educational work and disseminate
broadly general information as to the
opportunities in foreign investment.
William R. Compton, of St. Louis.
chairman of the United States govern
ment bond committee, urged that a
plan of market stabilization of values
on outstanding government securities
be worked out to prevent "such marked
declines in quoted values"
The three-day conference formally
ended tonight with a banquet at the
Breakers. at which Richard n. Lee
secretary of The Tribune, was toast
master.
Pa,ic Is Impossible
"a financial panic could not possibly
befall this country at the present
tune Mr. Lee SAID, because the Fed
eral reserve act, under which we are
operating, makes panics impossible.
Moreover, with all Europe industriallv
paralyzed, and with Germany bankrupt
and IN the hands of receivers. Amer
ica's position in the market for raw
materials is such that an industrial
panic IS beyond possibility.
Our government has done notable
work in extending a helpful hand to
labor. but it must do no less for bust |
ness. 1t should encourage the com
merclal leaders of the country to safe
will" eooo
R. c. Lefingwell, Assistant Secretary
OF the Treasury, Captain H. G. Gill
land, of the Royal North Lancaster
Regiment, an escaped prisoner of war /
and the Rev. DR.. Charles A. Eaton aiso !
spoke. 'o''' 0iso
The following officers were elected.
president. William G. Baker. ir. Of
Watts & Co., Baltimore; vice.nresi.
dents, John E. Oldham, of Merrill Oid.
ham & Co. Boston; George W .
Hodges. of Remick, Hodges & CO. Nav
York; Lewis H. Parsons. of Crahsnr ,sT"
Parsons 6 Co.: Philadelphia; J. Shep'' I
no Af..%t%