The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-01-13
SAVINGAND
SPENDING
A bankers Plea for Sane Thinking ON
the Thrift Question In These
Trying Days.
BY JOHN q. I4oNsDALE

by JOHN q. LONSDATlE
President of the National Bank OF
Commerce OF st. Louis.
Shall we save every cent we can,
or proceed with business as usual ?"
That question is causing more dis
cussion from widely divergent view
points than any other before the pub
lie today. There are those who 20
80 far as TO suggest. In perfect good
faith. that the national campaign to
cut down spending is German in
spired. On the other hand, men OF
prominence are urging the people to
go the limit in gtinting themselves. TO
spend only for the bare necessities of
life.
Naturally. the latter doctrine Ia un-
favoraoiy received by some mer.
chants. who view Il as an unwarrant-
ed attack upon prosperity. They ask
how they are to be expected to sub
scribe to different war charities and
TO buy liberty bonds If their trade is
TO be thus curtailed Their attitude
ts not unpatriotic: they merely think
the cry OF Save! Savel" is premature
and dictated by unsound rea soninR.
II Is important, then, that we |
should ascertain the economic effect /
OF general saving-whether Il NAV, in |
fact, be carried go far as to seriously |
impair the nations ability to bear the
burdens of war
The task of the government in |
equlpping and supplying our fighting
forces involves two distinct opera
lions: First. II obtains the necessary !
purchasing power by the sale OF
bonds; second, II uses that power to
procure the production and delivery
OF the things needed.
It IS estimated that about ons-third
Of our normal national productive |
ability must now be devoted to war
purposes. This fact of itself Ia sufff- /
Client to show that cuisines as usual
In nom essentials Is an economic I'm
possibility unless we vastly increase
out total national production. and this
increase to be accomplished In the
face of depleted working force due
TO the organization OF the great ma
uonaI army But England has faced
these conditions. and has increased
her output. II is not I'm possible for
US Under the stimulus OF pa triotism
and high wages our workers have al
ready augmented their per capita pro-
duction. and much yet remains TO bs
accomplished In this respect Fur
thermore the women of the nation
offer a greet potential working force
that is vet to be drawn into the ranks
of industry.
Rut even so, we cannot increase
our national production TO the point
where the excess over normal will
fully supply the requisite amount OF
war essentials There must be a
marked reduction in the manufacture
of non essentials so as TO release a
certain amount of labor and mate
rails for war purposes. II has been
suggested hv some that business be
put upon a strict war basis by apply
ing the following criterion to every
contemplated transaction: VIII this
transaction help TO win the war? As
will be seen by the following analysts,
this course would involve conse
uuences such as even the proponents
of the plan have perhaps not fully
unprecedented.
Business Ponce p fvsa.
The common 1uderstrS ling I'm re-
rard 10 the necessity for saving is
that spending for non essentials inter
feres with govern mental financing by
decreasing the amount OF money
availa BILE for purchasing government
bonds But such fs not the case, The
act OF snendirg for any article is
merely that Of putting the money in
the hands OF another person who can
use 1t to buy government securities as
well as the spencer, SuCn spSHdiftS
is unpatrotic only when II completes
with the government by creating
demand for any article the manufac-
ture OF which has called for the en-
rioyment OF materials and labor need
ed for war purposes. For instance.
let us take the case OF "a" who Is
manufacturer OF stiverware. II
neither the materials ernnloved by
"a" nor h's own services. nor the
services OF his employees. are needed
by the government then II fs better
for the community and the nation
that "A's" plant continue In operation
for the nerioG OF the war. He Is add
inc to the wealth Of the country, Tn
giving employment that affords live
lihood to hts men, and he Ia not In
terferinR with the governments war
~ro~rar1 Yet the answer to the ques-
ton, do Gag business transact
help TO win the war;" would be No"
Two Methods.
In dealing with the question OF nom
essentials, there Ia direct and efrec-
tive way in which the government can