The sun., 1919-10-23
BANK CONVENTION
HEARS LABOR BRIEF
Collective Bargaining Surest
Road to Industrial Democ-
racy, Woll Says.
HODGES MADE PRESIDENT
Thomas w. Lamont Asks for
Extension Of Credit to
European Nations.
HODGES MADE PRESIDENT
spsctal pespateA TO Tur sus.

Special DespofcA TO TIE Sun.
ST. LOUIS. Oct 22.--The stand OF tho
American Federation of Labor on GER
tain questions involved In the present
controversies OF capital and labor we're
outlined to-day by Matthew Vol. vice.
president of the federation, to the Amer
lean Investment Bankers In session at
the Hotel Statler. Vol was unable to
be present because OF his attendance at
the Industrial conference In Washington.
and his paper was read.
THE American Federation of Labor
supports the removal Of inequalities in
the Industrial structure by orderly proc
esses." he declared. "It is opposed to
the reform programmes OF the Socialists.
l. w. WIS and Bolshevism. 1t reoog-
nizes that the greatest happiness and
contentment will come where the great
est Individual freedom is allowed. 1t
Views the limitation of freedom in any
degree as opening the way for a state Of
autocracy.
old Order Must Pass.
'-The relations Of employer and EN-
ployee are not matter for legislation
This relation should be determined by
ciHpioycT cuipiOyco dCluB cACiusiNo
of outside influence. The old order OF
industrial autocracy must pass The old
relation Of master and servant in indus
trial life must give way to cooperation
between employer and employee
'-The federation views with suspicion
profit sharing schemes and offers to adj
init employees to boards Of directors
These are measures of restricting eco
nomic activities and weakening the
forces of organized labor.
'-The federation Is not opposed to
favors them. however, demanding the
same right for the employed.
Recognition of the right of employees
to bargain collectively is the surest road
to Industrial democracy. When indus
trial democracy Is established Industrial
peace will follow"
Thomas W. Lamont of New York.
financial adviser to the American dele
cation at the Peace Conference. in
report read before the convention by
Arthur J. Rosenthal. New York invest
ment banker, declared that immediate
ratification of the peace treaty by the
United States Senate and the extension of
credit to European nations through the
medium of large purchases of foreign
securities are essential II American ex-
port trade Is to be maintained.
Lamont's Paper Read.
Lamont was prevented from attending
the convention. which has been in ses-
sion since Monday. but forwarded his
report. Rosenthal was associated with
him In its preparation, together with
other American financiers among them
Mortimer L. Schiff. Allen B. Forbes and
H. l.. Stuart
Much has appeared in the public
print" Lamont's report stated, ''as to the
necessity of extending credit to Euro
pean countries. but few steps have
actually been taken. Passing the buck
is the slang expression that describes
what We have done along this line.
Many are of the opinion that this is a
question to be settled by the bankers
or Wall Street, but II is not. The ex-
tension of credit, the rendering of help
to Europe in order to enable her nations
to continue their purchases In the
United States is a work for every thrifty
and solvent citizen of this country.
ITO meet the reconstruction problems
II Is necessary for us to develop a spirit
Of cooperation. but even this is not
enough. as It is impossible for US to do
anything in the way Of concrete credit
measures pending the ratification of the
peace treaty py lnt SeHdle.
mo adequate credit plans are posi-
BILE until the business community knows
that peace is assured. Exporters are
timid manufacturers hold back, and the
bankers cannot move until they know
that peace and stabilized conditions are
actually in sight"
Exemption for Foreign Bonds.
Lamont then told of how he was asked
while in Paris to arrange an interna-
tional agreement exempting the holders
In any one country of foreign securities
from all except the taxes of their own
country. II have discussed this matter
at some length with financial repre-
sentatives of the principal Powers of the
world" he said, "and feel that it will be
quite possible for American investors
when they buy foreign securities author
lied for Issue in this market to receive
specific tax exemption, that Is to say, ex-
emptions from foreign taxes for each
specific issue.
This question of foreign credits is OF
vital Importance to the United States at
the present moment. Foreign ex-
changes should be supported at least. II
not brought back to normal II this is
not done Great Britain, France and the
other countries abroad will find II most
difficult to continue their purchases from
American manufacturers and exporters
and the reaction on America will be Sc
we're"
Lamont ventured the opinion that the
United States will shortly see large
loans to Great Britain. Belgium, France
and Italy to enable these nations to con-
tinue their trade with America. The
committee recommended the establish
ment Of financial library In New York,
where financial statistics information
and literature of all kinds covering Sc
curities issued in all parts of the world
would be available ito American in
vestors. The library, 1t was pointed out,
could be supported by the investment
bankers, the American Bankers Associa-
ton and the New York Stock Exchange.
To Protect Investors.
The library. in the opinion of the COM
Rittee. could maintain a registration de-
partment for the registration of foreign
securities offered by American houses,
Such department could prevent coun-
terfeiting and other frauds that are
common on foreign securities owing TO
the fact that they are frequently in
crude printed form and lack proper iden-
tihcation marks.
The report stated that a number of
in arna fiOnal a0rprpiffaaa I,ax,a 49,.