New-York tribune., 1918-04-28

business conditions IN all sections
of the country to realize that the
creed of self-denial has not vet been
accepted by the American people,
though for year great propagan-
da has been conducted to make
them understand that only by elm
mating consumption of unnecessaries
can sufficient goods and services be
made available for war Here, stores
are reported to be extremely busy,
with the sales of civilian goods run
ming 10 or IS per cent ahead of
last year; there, the demand for this
or that luxury is expanding; and so
forth. The business as usual fall
lacy dies hard. perhaps because it is
founded on selfshness. Meanwhile
the inexorable fact remains that it
we are to win the war every bit of
productive energy, above what is re-
quired to keep the population in
comfort-not in luxury-must be
diverted to the task in hand. That
must be said over and over again,
until at last it shall be realized by
all. Not in any other way can sue
cess be attained
The gospel of thrift has seldom
been preached so convincingly as it
is by Seward Prosser, president of
the Bankers Trust Company, in the
current issue of Trust Companies, "
Our problem, he says, is not a mat
ter of raw materials, or manufacture
ing or industrial capacity 1t is a
question of national morale:
Because cur shores have not been
invaded by the Teuton. because our
territory and homes have not yet
been desecrated and we do not feel
the near approach of this menace or
hear the thunder of artillery, many
of Us have not vet sensed the real
gravity of this war as have the peo-
pie of Frarfce, of England and Italy.
Despite the enforcement of our
food control laws, the burdens Of
taxation, the appeals for savings and
subscriptions to Liberty loans and
the multitude Of war restriction and
emergency measures administered
through Washington. the biggest les
son of all is still to be brought home
to the American people. 1t is that
of the morale of the nation which
voluntarily reduces its consumption
to necessaries, which makes for true
economies and which galvanizes the
resources of labor, Of business, in
dustry and finance into harmoni-
Gus, united whole
The extent Of the need for greater
sacrifices on the part of the people is
not matter of guesswork; it is def
nitely measured banking statistics
as Mr.. Prosser shows:
Careful estimates which I have
caused to be made show that about
66 per cent of the 50, $50 ,O00, 900 which
the government borrowed came from
savings and that about 33 per cent,
Or. say. $4,000, 900, was directly
or indirectly advanced by the banks.
j. The estimate shows that on March
81 the banks of the country-some
3o.l5 in number-heId government
ooiigations or were loaning on gov
ernment obligations; on the average
ABOUT 100000 each. Upward CT ST.
o00,O0O,o coo was represented by direct
Investments in government securities
and about s500,000,0O0 by loans made
with government securities as cell
lateral.
And unless, through the develop
ment of a spirit of thrift, the fnan-
cial burden can be shifted to the
people, where it belongs, the in
evitable result will be serious infa-
ton:
DO not lose sight Of the fact that
the goods and services"-to quote a
phrase which has become almost col
loquial in England-must be pro-
vided within the year in which they
are used. Nevertheless, translating
h4ic oN~NdAis3SS 4iLLO lE4SiAS VI iuOUSy,
unless our people can be stimulated
to greater degree of self-deLial
than they have exercised so far, the
payment for the goods and services
will be provided to the extent Of only
about 10 per cent to rs per cent from
savings, while about 25 per cent to
80 per cent must come from bank
eredi.g-and as corallary there
VIII De an increasing amount OF in.
hation, with the we'll known penalties
which flow therefrom
Therefore, Mr.. Prosser says:
The message which would like t.
oring from the experience Of Eng
land and France 70 the bankers of
the United States-and from them
70 the people OF the United States--is
the need OF great self-denial. To-
aay-in England-~i. is disgrace for
man or woman 10 be seen riding
IN an automobile unless they are
upon senae errand Of mercy or ne
eesaity. If IL badge Of honor to
wear old and shiny clothes II il .