New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-04-11

sent as his message to the American
people:
Smash that damnable Hun propa-
ganda and we will smash the German
line
Charles s. Hamlin, of the Federal Re-
serve Board. said the American peopIo
must increase the production Of neces-
stiles for war and a the same time re-
duce the production and consumption
OF luXurles and non-esSen.ials. He told
the business men profits would suffer,
but they cheered him nevertheless.
This war must be leargely financed
out of the savings OF the people," de-
clared Mr. Hamlin. The government
wants goods. 1t does not want money.
1t wants material, clothing, shot and
shell, and what We give to the govern
ment We must sacrifice and go without
ourselves. Then this war can b.
financed as it out TO be financed
"On the other hand, if we finance
this war by borrowing and do not pay
the loans at once, we are going to have
an imitation Of prices such as this
country never before has seen. We
are going to have higher interest on
government bonds and higher interes,
rates Tor merchants. and we are going
to see the ruin OF millions os people
living on fixed incomes, who Will be
overwhelmed by the disaster sucn in
t1ation will surely entail
"Now there are two extremes We
hear people say, Business as usual
We hear others say, Absolute destruc-
ton of essentials I hope we can
find happy medium between the two
essentials should be changed grad
ually to essentials. Labor should be
gradually released and modified and
shifted from the non-essentials to the
essentials. But when we talk of bust
ness as usual we might as we'll say
Let us eat, drink and be merry, for
tomorrow we die Our motto should
be: Let us save and serve, for to-mor-
row we crush the Hun
My friends, the greatest prepare
ton any people ever made IN the
world for either peace or war was the
under which we are operating to-day
That Fedora, Reserve System is -four
i,hing. The twelve Federal Reserve
banks today hold in their vaults ST.
SEQ 600 GOO in gold. If you took all the
gold in the vaults in tho Bank of Eng
land and added 70 1t all the gold III
the vaults of the Bank of France. ana
to that all the gold in the vaults oil
the banks of Italy and Spain, it would
not nearly amount to 81 800, 600 600.
'To-day IS per cent of the banking
resources of that system have joined
us. and I want to say it is the patriotic
duty of every sound bank or trust
company Of the United States to come
into this system to give us this gold. sc
we can broaden the base on which tt
build up credit in the future
In denying there was initiation il
the Federal Reserve Bank, Mr. Hamlir
said:
"Out of our cash reserves to-day
we can set aside 40 per cent in goll
against the Federal Reserve notes, :
billion four hundred million now out
standing We can take &C per cen
of that from our cash reserves ant
there would be left a cash reserve Of
over so per cent against our net LA
biity That is not imitation, in my
opinion. 1t is sound, conservative
banking.
The cost of this war is stupendous
We originally estimated it would cos
us sis, 10000 600 year. This year We
have spent less, for various reasons
and we only asked for $4,000, 100000 il
the last loan.
THE Allies and the United States are
tire cost of the Franco Prussian War
they are spending each year four time;
the cost of the Civil War.
"Our country will be the leader o
the world, a prosperous country, Ion!
after German becomes a dead Language
and the last Hun has died of starva
ton and gone to the place where thu
wicked cease from troubling and thu
weary are at rest,